Wednesday, October 06, 2004
Malpractice insurance, again
My company's newsletter just arrived. This is the third year in a row of double digit increases in malpractice premiums. Interesting points:
1. The increase is NOT due to "bad investments in stock market." This is a trial lawyer myth.
2. Frequency of claims has not changed much. Doctors are not getting "worse."
3. Severity is rising steeply, from $90K/closed suit in 2000 to $150K/closed suit in 2003. 50% of claims are dismissed, dropped, or abandoned, but still incur costs. Doctors win 90% of the cases that go to trial (so much for the "epidemic of malpractice.") Severity explains 1/3 of the premium increases.
4. Our illustrious Supreme Court tried to nibble away at our tort reforms. Fortunately our Legislature fixed it rather quickly, but there is a window of opportunity for the lawyers until the statute of limitations kicks in; this is another 1/3 of our increase. (Preston v. Dupont 2001 and Russell v. Pediatric Neurosurgery 2002.)
5. The cap on noneconomic damages rose to $300,000 during negotiations to restore limits. That is most of the rest of the premium increase.
Even in Colorado, with a favorable legislature and excellent history, the trial lawyers never rest. Vote Republican, vote Coors, vote Bush if you want to continue to practice quality medicine.
1. The increase is NOT due to "bad investments in stock market." This is a trial lawyer myth.
2. Frequency of claims has not changed much. Doctors are not getting "worse."
3. Severity is rising steeply, from $90K/closed suit in 2000 to $150K/closed suit in 2003. 50% of claims are dismissed, dropped, or abandoned, but still incur costs. Doctors win 90% of the cases that go to trial (so much for the "epidemic of malpractice.") Severity explains 1/3 of the premium increases.
4. Our illustrious Supreme Court tried to nibble away at our tort reforms. Fortunately our Legislature fixed it rather quickly, but there is a window of opportunity for the lawyers until the statute of limitations kicks in; this is another 1/3 of our increase. (Preston v. Dupont 2001 and Russell v. Pediatric Neurosurgery 2002.)
5. The cap on noneconomic damages rose to $300,000 during negotiations to restore limits. That is most of the rest of the premium increase.
Even in Colorado, with a favorable legislature and excellent history, the trial lawyers never rest. Vote Republican, vote Coors, vote Bush if you want to continue to practice quality medicine.
# posted by Unknown @ 1:38 PM 
