Two New Studies Show that Medical Liability Reforms Work

On May 31, 2005, the American Medical Assocation applauded two new studies showing that medical liability reforms increase physician supply and decrease physicians likelihood of limiting services for fear of medical malpractice charges.

On Tuesday, Donald J. Palmisano, MD, JD, immediate past president of the AMA said, "Two peer-reviewed studies released today confirm what the AMA has long held: medical liability reforms work. A study today by economists at the Agency for Healthcare Research and Quality (AHRQ) published in Health Affairs and one by independent university researchers published in The Journal of the American Medical Association (JAMA) both show what we have long known — medical liability reforms increase physician supply.

"Skyrocketing medical liability premiums are forcing physicians in states without reforms to limit services, retire early or move to states with reforms – with devastating results for patients seeking medical care. In states without reforms, doctors have been forced to stop delivering babies, trauma centers have closed, and physicians are grappling with how they can provide high-risk procedures," continued Palmisano.

"Our liability system has evolved into a 'lawsuit lottery,' where a few patients and lawyers receive astronomical awards, and put access to care at risk for all others. The truth is – every American pays the price for this country's liability crisis.

"The reforms AMA supports, including a cap on noneconomic damages, have been working in California for nearly 30 years. An obstetrician in Los Angeles, where reforms are in place, pays about $63,000 a year for insurance. That same obstetrician in Miami, with no reforms, pays $277,000 or more.

"Polls find that nearly three-quarters of Americans support a law that puts reasonable caps on noneconomic damage awards. Today's studies show what three-quarters of Americans know: Medical liability reforms, particularly those that include a cap on noneconomic damages, work to ensure patient access to care."

Review the studies

Source: AMA news release

Posted: Wednesday, June 01, 2005 12:00:00 AM. Modified: Wednesday, June 01, 2005 12:06:34 PM.

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