Researcher: Medical Malpractice Award Caps Do Not Lower Health Care Costs

A professor of medicine at the University of Illinois published two papers stating that medical malpractice award caps do not significantly lower health care costs. Professor David Hyman co-authored the papers that examined the relationship between medical malpractice award caps and health care costs. One of the papers found that award caps had no effect on hospital spending, but contributed to an increase in spending on doctor’s services.

Examining Medical Malpractice Award Caps

Insurance companies have called for medical malpractice award caps to limit their costs. Many state legislatures have enacted medical malpractice award caps as, in their view, a means to attract highly specialized medical professionals who may face malpractice lawsuits. Advocates of medical malpractice award caps and other forms of medical tort reform see these laws as a means to keep health care costs down while maintaining a high level of patient care.

Hyman Disputes Effects of Medical Malpractice Award Caps

Professor Hyman’s studies have shown that the proponents of medical malpractice award caps lack sufficient evidence to back up their claims. In his research papers, he states that medical malpractice award caps have only a “tiny impact” on medical expenses. In some instances, he has found “some evidence that caps might actually increase health care costs.” His research shows that medical malpractice award caps do not “materially increase the number of practicing physicians in a state.”

Medical Malpractice Award Caps Do Not Attract Doctors

Proponents of medical malpractice award caps often state the belief that the limits will encourage doctors to practice in states with those limits in place. These physicians are more likely to work in a state with award caps in place, as they will reap the benefit of lower malpractice insurance premiums. Professor Hyman also refutes the claim that states with medical malpractice award caps will attract high-quality physicians. His research shows no correlation between an influx of physicians in states with damage award limits for most medical specialists.

Medical Malpractice Award Caps And Healthcare Access

While supporters of medical malpractice award caps view the laws as a means to attract physicians, Professor Hyman views the problem as one of access, rather than of costs. He called the idea of medical malpractice award caps “one of the levers that policymakers have” to improve patient access to health care professionals. Instead, he proposes that states increase their pay to doctors who treat Medicare recipients. He calls this practice “a clear and direct way of encouraging physicians” to relocate to areas “where access to medical services is a problem.”

Source: Medical Xpress

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