Hospital Group Calls For Liability Relief

The researchers cite two main reasons for the premium increases:

• The amount of money paid per liability claim has increased 58% since 1996, to $158,000.
• Insurance company investment income has declined, leading many companies to raise premiums.

Compounding the problem is the fact that some major insurers are leaving the medical liability market, the researchers write.

The AHA and other insurer and provider groups are calling for federal legislation to rein in the rising costs. Their recommendations include limits on non-economic damages; limits on the time allowed for filing claims; limits on attorney contingency fees; and penalties for frivolous lawsuits.

Representatives for the trial lawyers and some patient advocacy groups argue that fear of malpractice suits gives physicians and hospitals an incentive to deliver high-quality care.

But the AHA says medical liability concerns raise the cost of care and lower its quality, by encouraging providers to practice defensive medicine.

The AHA has posted the report on the Web at http://www.ahapolicyforum.org/trendwatch/index.asp