Health Care Costs Do Not Increase Because of Medical Malpractice Lawsuits Says New Study
Posted: Thursday, December 16, 2010
by Katie Kelley
LegalView
Medical malpractice lawsuits are not contributing to the rising cost of health care, says a new study put out by Zurich, one of the leading insurers of hospitals and health care organizations across North America. The study reports that the number and amount of claims made are decreasing.
Data from 1,600 hospitals were collected from 1997 through 2007. Many have been surprised by the results of the study. For example, the number of medical malpractice claims, determined by comparing the number of occupied beds to the number of legal claims filed, is in decline. Currently, the claim frequency is 1.96 claims per 100 Occupied Bed Equivalents, or the number used to measure hospital occupancy.
According to the report, the nature of health care institutions depends on the severity of claims they receive. For example, for-profit and government health care institutions have very similar claims; however, non-profit hospitals have the lowest severity of claims. Within the non-profit hospitals, church-based health care institutions had a 30 percent lower average severity of claims. These findings are supported by a separate study released by Thomas Reuters in August 2010 that found, "Catholic and other church-owned systems are significantly more likely to provide higher quality performance and efficiency to the communities served than investor owned systems" or "secular not-for-profit health systems.Zurich cautions that they can not correlate the higher-quality of care shown in the Thomas Reuters' study and the Zurich report's findings.
Critics claim that malpractice lawsuits contribute to the increasing cost of health care by increasing doctors' insurance premiums. They can add to unnecessary and expensive tests and services. Congress would like to reform the way medical malpractice lawsuits are regulated, but many claim that since the number and severity of medical malpractice claims are down, reform would not do much to curb the rising cost of health care. These reforms would only cut down on health care spending by $11 billion, or five percent. It is estimated that the United States spends about $2.4 trillion dollars a year on health care. This number is small compared to the national debt which is currently at $13.8 trillion dollars.
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