Medical Malpractice Payouts Report: Texas Has Lowest Payout Rate

According to a report from the National Practitioner Data Bank (NPDB), Texas had the lowest per capita rate of medical malpractice payouts in the nation last year. Texas medical practitioners paid $3.03 per capita for medical malpractice payouts in 2013, up only one cent from 2012. The per capita rates allow for more accurate comparisons between states of differing population sizes by calculating the average payout amount for each practitioner within that state. New York practitioners made the highest payouts over the last two years: $38.33 in 2013 and $38.99 in 2013.

Reporting Medical Malpractice Payouts

The NPDB relies on data from doctors and other professionals to compile their reports on medical malpractice payouts. Medical practitioners, including doctors, nurses and other staffers, who have paid off lawsuits must report notice of any medical malpractice payouts within 30 days to the NPDB. The payout must stem from the practitioner’s receiving a written demand of payment.

Settlements Main Source of Medical Malpractice Payouts

The most recent report showed that 96 percent of all the medical malpractice payouts recorded stemmed from settlements, rather than trial verdicts. The high number of settlements may have less to do with a physician’s culpability in a malpractice case and more to do with the attorney’s ability to win the case. If the doctors targeted in the suits feel that they have strong cases, they are more willing to go to trial. Also, many doctors may settle a case to avoid the hassle of a trial and allow the insurance payoff to cover the costs.

Medical Malpractice Payouts Vary Widely By State

As noted above, medical malpractice payouts can vary widely from one state to another. The only states that had payout rates below $4 in 2013 were Texas ($3.03), North Dakota ($3.06), and Wisconsin ($3.08). Many of the Northeastern states had per capita rates of $20 or more, including New York ($38.99), Pennsylvania ($24.77), New Jersey ($23.31), Massachusetts ($22.73) and Connecticut ($21.01). The rates for medical malpractice payouts in Washington, DC, were just shy of $20 at $19.71.

Medical Malpractice Payouts and State Limits

The report also shows many instances of states with restrictive tort laws possessing some of the highest medical malpractice payout rates. Virginia has some of the strictest rules on how much patients can recover in medical malpractice lawsuits, but its per capita payout rate ($10.37) is slightly higher than that of West Virginia ($9.33) and more than double that of North Carolina ($4.55). California, once considered a hotbed of medical malpractice payouts, has one of the lowest per capita rates at only $5.86.

Source: Forbes

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