From yesterday’s issue of Bloomberg/BusinessWeek, we further evidence confirming the fact that when Doctors admit that they made a mistake in providing care to their patients and offer compensation, it is less likely that a medical malpractice suit will be brought as well as leading to a faster resolution of disputes and decreased legal costs. While the findings of this study conducted by the University of Michigan Health System and Brigham and Women’s Hospital which is referenced in the article might seem like a no-brainer, the author of the story is quick to point out the reality is that “Traditionally, doctors and risk managers have feared that admitting fault invites lawsuits and amounts to handing over a “blank check” to attorneys.”
The key graphs from the article are:
“Lots of people say that if we do the right thing and disclose errors, malpractice claims and liability will ruin it,” [the study's author] said. “What our findings show is it can be done, and in fact, liability costs and claims actually got better.”
Researchers from the University of Michigan Health System, Brigham and Women’s Hospital, and colleagues analyzed records on 1,131 malpractice claims, or requests for compensation due to medical error, between 1995 and 2007, which covered several years before and after the program was implemented.
After health care providers began admitting mistakes, apologizing and offering compensation, the monthly rate for new claims fell from just over seven per 100,000 patient encounters to 4.52 per 100,000, or 36 percent.
The average monthly rate of malpractice lawsuits filed against the hospital fell by more than half, from 2.13 per 100,000 patient encounters to 0.75 per 100,000.
The median time it took to resolve claims also dropped by several months, while the mean costs for liability, including compensating patients and paying attorneys, fell by about 60 percent. The average cost for lawsuits that were filed decreased, from nearly $406,000 to $228,000.
As one biostatistics professor involved in the study then goes on to explain, these findings suggest that because the fear of being sued for malpractice often causes physicians to preform more costly diagnostic tests than they believe in their opinion are really necessary, instituting a practice of full and honest disclosure could potentially help lower the costs of health care in general.
All of this evidence is certainly important to keep in mind then next time you hear someone claiming that litigious trial lawyers are driving up the costs of healthcare because of higher premiums.
