No Cap on Non-Economic Damages: The Rising Cost of Medical Malpractice – Is Your Practice Prepared?
Did you know that nearly half of U.S. states do not have caps on non-economic damages in medical malpractice claims? The result? Significantly higher average payouts in these states, posing serious financial risks to healthcare providers.
Medical malpractice payouts are increasing:
- The average medical malpractice settlement payout in the U.S. for claims reported in 2023 was $420,000. In total, there were $4.8 billion total settlement payouts.
- Ineffective risk management can result in millions of dollars in legal costs annually for healthcare systems.
- An estimated 795,000 Americans die or are permanently disabled from diagnostic error according to a 2023 study from Johns Hopkins Armstrong Institute Center for Diagnostic Excellence.
Risk mitigation strategies can dramatically reduce these costs while improving patient safety, operational efficiency, and providing unprecedented support to physicians.
The key to transforming healthcare? A holistic approach that reduces medical errors, improves patient care, prevents physician burnout, and lowers costs. By addressing all these factors simultaneously, we create a healthier system–for patients, physicians, and insurers.
How MD for Accuracy Benefits Physicians, Healthcare Systems, and Professional Liability Insurers:
- Improved Patient Care: By proactively identifying risks and implementing safety protocols, healthcare systems can significantly reduce medical errors and adverse outcomes.
- Reduced Legal Costs: Strong risk management practices can lower the likelihood of malpractice claims, minimizing legal payouts and courtroom time.
- Lower Insurance Premiums: Insurance underwriters are more likely to offer lower premiums to healthcare organizations with a demonstrated commitment to patient safety and risk management.
- Enhanced Operational Efficiency: By reducing systemic failures, improving communication, and preventing costly errors, healthcare organizations experience fewer delays, readmissions, and interruptions to care.
- Reduce Physician Burnout: Physicians who feel supported and valued through the actions of their employer experience lower rates of burnout and are more likely to continue in their critical roles of providing care.
Financial Impact of Ineffective Risk Practices:
- Reduced reimbursement under value-based payment programs.
- Increased care costs resulting in loss in capitated care models.
- Reputational harm negatively impacting volume and revenue.
- Provider turnover resulting from extreme psychological effects—anger, guilt, inadequacy, trauma response, depression, suicide—related to patient safety errors.
By focusing on reducing medical errors, optimizing care, and preventing burnout, we can enhance patient safety, lower morbidity and mortality, and improve overall patient and physician satisfaction. It’s a win for everyone–patients, providers, insurers, and the healthcare system.
Don’t wait for a costly legal issue to arise—be proactive. Contact us now to learn how we can improve patient safety, support your providers, and help your healthcare system save money.
