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Caps on Malpractice

Caps on Malpractice. MED INF 401 American Healthcare System Winter 2010 Kevin Scharnhorst. Medical Malpractice What is it?. Statutory limits placed on the amount of money a victim of medical malpractice can recover through a legal case.

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Caps on Malpractice

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  1. Caps on Malpractice MED INF 401 American Healthcare System Winter 2010 Kevin Scharnhorst

  2. Medical MalpracticeWhat is it? • Statutory limits placed on the amount of money a victim of medical malpractice can recover through a legal case. • Limit the fees that an attorney can charge for representing the victim of medical malpractice. These medical malpractice caps often apply irrespective of whether the recovery was determined by arbitration, settlement, or judgment. (2010, Medical Malpractice Attorney Source. Retreived on January 24, 2010 from http://www.medical-malpractice-attorney-source.com/medical_malpractice/caps.html)

  3. Medical MalpracticeViews… • Some argue that medical malpractice caps prevent victims from receiving fair compensation for their devastating losses. • Others believe that medical malpractice caps provide a necessary check on the legal (tort) system.   (2010, Medical Malpractice Attorney Source. Retreived on January 24, 2010 from http://www.medical-malpractice-attorney-source.com/medical_malpractice/caps.html)

  4. Medical MalpracticeTypes of Damages Awarded… • Economic – quantifiable monetary losses suffered by victim, including out-of-pocket medical expenses, past and future loss of wages, etc. • Non-economic – qualitative losses that the victim can suffer like pain and suffering, loss of consortium, inconvenience, disability, disfigurement, etc. (2010, Medical Malpractice Attorney Source. Retreived on January 24, 2010 from http://www.medical-malpractice-attorney-source.com/medical_malpractice/caps.html)

  5. Medical MalpracticeTypical Examples… • Four have caps that can be waived or increased due to severity • Two have caps for wrongful death only • Four states have a $250,000 general award cap • Four states have a total damages cap • Eighteen states have non-economic damages cap between $250,000 and $500,000 • Four states have damage caps that exceed $500,000 (2010, InjuryBoard.com, Retreived January 24, 2010, from http://www.injuryboard.com/help-center/articles/tort-reform-and-the-effect-of-medical-malpractice-caps.aspx)

  6. Malpractice ReformEconomic perspective… • Congressional Budget Office in 2009 shared that there is opportunity to save about one-half of 1 percent. • Savings of $41 Billion over one decade. • Although significant, this it is notenough to be realized in a savings that extends to physicians that pay the insurance premiums.

  7. Malpractice ReformEconomic perspective…

  8. Malpractice ReformCurrent Legislation… • H.R. 3459 being sponsored by U.S. Representative, Brian Baird of Washington’s 3rd congressional district. • Previously sponsored as H.R. 2657 and 3378 in 2005 that both died.

  9. Malpractice ReformCurrent Legislation… H.R. 3459 seeks to enact into law the following: • Set a cap on non-economic damages not to exceed $250,000 total from all providers. This amount will be adjusted for inflation from 1975 as proposed by the bill to be updated to 2005. • Establish and enforce sanctions for meritless actions and pleadings.

  10. Malpractice ReformCurrent Legislation… • Seek to hold medical practices accountable to the State Medical Boards that will govern adherence to common standards proposed. • Create an interstate reporting and physician tracking database for reporting patient complaints.

  11. Medical ReformAMA pledges… • Implementing proposals in all sectors of the health care system, focusing on administrative simplification, standardization, and transparency that supports effective markets; • Reducing over-use and under-use of health care by aligning quality and efficiency incentives among providers across the continuum of care so that physicians, hospitals, and other health care providers are encouraged and enabled to work together towards the highest standards of quality and efficiency; • Encouraging coordinated care, both in the public and private sectors, and adherence to evidence-based best practices and therapies that reduce hospitalization, manage chronic disease more efficiently and effectively, and implement proven clinical prevention strategies; and,

  12. Medical ReformAMA pledges… • Reducing the cost of doing business by addressing cost drivers in each sector and through common sense improvements in care delivery models, health information technology, workforce deployment and development, and regulatory reforms. (2009 , Letter to President Obama) (Letter to President Obama. (2009). Retrieved on January 23. 2010, from http://www.whitehouse.gov/assets/documents/05-11-09_Health_Costs_Letter_to_the_President.pdf)

  13. Questions ?

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