Hearing on special health courts

by rcentor on June 28, 2006

Regular readers know that I favor special health courts as the best method of addressing medical malpractice. Last week the Senate had hearings on this subject. Common Good features these hearings on their web page – Senate Hearing on Special Health Courts

Professor Studdert testified at the hearing. He is the author of the NEJM article which so many have misinterpreted. I have blogged previously on the article – 40% of malpractice cases are totally unwarranted and More on unwarranted malpractice suits. In his testimony Professor Studdert makes his interpretation very clear.

Pointing to his most recent study on malpractice claims published in the New England Journal of Medicine (read more about the study here), Professor Studdert said that while the current system does a reasonable job at directing compensation to the right people, compensation is only one goal. More importantly, he suggested, the current system fails in four critical areas. First, the process is too costly. More than 50 percent of the money in the system goes toward overhead expenses, a much higher rate than other compensation schemes such as workers compensation. Second, only about 3 to 5 percent of injured patients have any contact with the legal system, leaving a large “invisible population” that the current system fails to help. Third, while it is difficult to estimate the cost, there is solid evidence that defensive medicine exists. Fourth, the current system is not compatible with efforts in quality improvement. Professor Studdert suggests that health court pilot projects would be an excellent way to evaluate whether alternative compensation schemes could provide better results. Click here to access Prof. Studdert’s testimony.

I am ready for the predictable cries that special health courts are unconstitutional. First, I hope the Congress allows them, then we can have the expected Supreme Court challenge. Asserting that something is unconstitutional does not mean that it is unconstitutional. It only reflects the asserters opinion. Until the Supreme Court has a chance to hear arguments and vote on an issue, we have opinions and speculation. I suspect that both sides can make convincing arguments.

Aside from that objection (which trial lawyers will wear like the flag), I can see no reasonable argument against special health courts. More patients would receive compensation; processes for improving quality would be enhanced; and physicians would likely practice less defensive medicine. Physicians and patients deserve a predictable system. They deserve judgements based on the medical data, not the skills of the lawyers.

Kevin, MD had a great rant on this subject yesterday – David Studdert testifies for health courts

Now I prepare to read the comments.

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{ 4 comments… read them below or add one }

drcharles June 29, 2006 at 8:39 am

i agree with you. while i certainly have doubts about the special healthcourts, they are the next quantum leap in fairness. i do worry that the “written opinions” generated from each case, supposedly to set legal precedents and clarify standards of care, will become outdated as quickly as they are written. medicine is such a fluid practice. look at what the NHS is saying about beta blockers for example (see kevin md’s post).

ps – i’ve moved to scienceblogs.com/drcharles if you get a chance to update links, thanks!

BC June 29, 2006 at 9:02 am

While I certainly agree that health courts could bring much more objectivity and fairness to the adjudication of medical disputes and much more of the money will go to victims instead of lawyers, I wonder if total costs under a health court system might be considerably higher because far more people will seek redress as compared to the 3 to 5 percent of injured patients that currently access the legal system.

Hopefully, there could also be a meaningful reduction in defensive medicine and its associated costs, but I would not expect a reform like this to materially reduce total healthcare costs.

Aaron June 30, 2006 at 10:02 am

Is the 3-5% supposed to represent victims of malpractice, or people who suffer maloccurrence? If it’s victims of malpractice, and the goal is to provide “health courts” which provide full and fair compensation to the remaining 95% to 97% of victims, well, do the math…. Taking the low-end 95% figure, accepting the “only 50% of the malpractice funds go to the victims” claim, assuming that 50% of current malpractice cases would fail in the new system, and fancifully assuming that there would be no administrative costs with the new system, payouts through health courts would still be no less than five times the total cost of the present system.

If you want to drive down the cost of malpractice litigation, particularly where the victim suffers very serious injury, start advocating for a national health care plan. Noneconomic damages are typically capped at levels which can be ridiculously low for the injuries inflicted – but many verdicts remain large because of the economic damages, largely future medical care.

CJD July 1, 2006 at 9:12 am

Can someone please explain how health courts will compensate more people sooner and at a cheaper cost?

And actually, DB, this conclusion of yours: ” They deserve judgements based on the medical data, not the skills of the lawyers” was directly contradicted by the Studdert study.

I guess your selective reading of it didn’t bring that point out.

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