Medical Malpractice Lawsuits and Non-Disclosure Agreements

A study published in the Journal of the American Medical Association found that the non-disclosure clauses in many medical malpractice lawsuit settlements lacked consistency and transparency. Researchers at the University of Texas at Austin examined the non-disclosure sections of medical malpractice lawsuit settlement agreements filed against the school’s physicians from 2001 to 2012. The study found that more than half of the 110 cases examined prohibited victims from disclosing that a settlement had even been reached.

How Medical Malpractice Lawsuit Non-Disclosure Agreements Work

A medical malpractice lawsuit settlement agreement allows the victim to receive a lump sum without the need to wait through the long process of a jury trial. One of the conditions of most medical malpractice lawsuit settlement agreements is that the plaintiffs are not allowed to disclose the terms of the agreement. Plaintiffs are also not allowed to discuss any amounts they may have received from the medical malpractice lawsuit settlement. These terms allow the healthcare professional or facility to continue their practices without undue publicity that could damage their reputations.

Details of the Medical Malpractice Lawsuit Study

The Texas medical malpractice lawsuit study examined how settlement agreements changed due to tort reform legislation passed in 2009. The study found that the 50 settlement agreements signed after the tort reform measure passed contained more restrictive language regarding non-disclosure than did the 60 cases from before 2009. Overall, the study found that 61 out of the 110 medical malpractice lawsuit cases examined prohibited any mention of a settlement, and nearly half prohibited disclosure of the facts surrounding the original claim.

Conclusions of the Medical Malpractice Lawsuit Study

Dr. William Sage, one of the study’s co-authors, wrote that, while most medical malpractice lawsuit settlement arrangements contained clauses regarding non-disclosure, these clauses were applied “with little standardization or consistency.” He also wrote that the language in these agreements “selectively bind patients and patients’ representatives” by methods that are “hard to justify on privacy grounds.” He commented that the medical malpractice lawsuit non-disclosure clauses are “often far broader than seems needed to protect physicians and hospitals from disparagement.”

Reactions to the Medical Malpractice Lawsuit Study

Attorneys on both ends of the country posted their reactions to the medical malpractice lawsuit study. Jeffrey N. Catalano, a Boston attorney, and Dr. Michelle M. Mello, a professor at Stanford Law School, wrote a commentary about the study. The commentary stated that “patients should not be forced to choose between compensation and acting on a perceived ethical obligation” when it comes to non-disclosure agreements. They also wrote that “restrictions on public disclosure of the facts of the event … are also hard to justify.”

Source: JAMA Internal Medicine

Get Answers For Your Medical Malpractice Lawsuit Questions

If you are a medical malpractice victim, contact one of our attorneys today to find out how we help with your medical malpractice lawsuit. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your medical malpractice lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.