Download Insuring Medical Malpractice by Frank A. Sloan PDF
By Frank A. Sloan
The price of malpractice assurance to physicians has been expanding in recent times, as has the danger to physicians of being sued. This e-book describes and analyzes the workings of the marketplace for physicians' legal responsibility assurance. The authors use their very own info and different assets to check questions reminiscent of: Is the marketplace for scientific malpractice coverage aggressive? Has the profitability of clinical malpractice assurance been over the top? Why do malpractice insurers call for reinsurance? What impression has coverage legislation had on rates? And it explores what event ranking is and the way it's performed.
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Additional resources for Insuring Medical Malpractice
Sample text
What we can do is to sketch out key characteristics of the business. The rest of the analysis seeks to understand just why and how these "stylized facts" of insurance (as economists would call them) are as they are. Later in this chapter, we begin to set out an analytic approach for the rest of the book. 1). THE NATURE OF THE INSURANCE PRODUCT Salient features of malpractice insurance include the following. The Risk of Insurance All businesses are risky. But risk is the essence of insurance. Investors and managers must decide in advance what goods or services to produce, and how, in light of expected sales even further in the future.
Controlling for factors such as severity of injury that distinguish malpractice plaintiffs from others, medical malpractice awards were considerably higher than for other types of cases, according to a Rand report (Hensler et al. 1987), a finding strongly reaffirmed by our own research (Bovbjerg et al. 1990). It is unclear, however, from our research that the differences are due in large measure to case selection by plaintiffs and their attorneys as opposed to unusual generosity by juries. 1980s Responses The 1980s saw a resurgence of reform efforts.
Extra tests and procedures are said to be done more for potential legal defense than for value in health care. Very high estimates exist of this cost—up to $15 billion annually in 1985 dollars (AMA 1987; Reynolds et al. 1987). This defensive padding of services is widely believed to occur, but its extent is very hard to document, for factors other than malpractice fears also promote service-intensive care—including patient demand and physician profit seeking (Tancredi and Barondess 1978; Sloan and Bovbjerg 1989) Effects on access to medical services are potentially even more troubling than those on the cost of care, and some physicians may have withdrawn certain medical services in response to malpractice fears.