Tort Reform Case Study

Litigation outcomes in the tort system are substantially correlated to the merits of the claims brought. Hyman and Silver summarize multiple studies supporting the proposition that the current tort system awards injured parties based on the merits of their claim The summary of the research revealed that those injured by actual malpractice were usually compensated, those not injured usually did not receive compensation “…the malpractice system does not sort cases perfectly, but perfection is an unrealistic standard." (Hyman & Silver, 2015) The jumbo-verdicts argument is not supported for two reasons. First, actual verdicts are often not an accurate representation of the amount paid by the losing party. Second, medical malpractice verdicts

Physicians carry significant weight in the tort reform debate because they are "the most respected and visible representatives" of the healthcare industry-an industry with "inconsistent positions" on tort reform. (Davis, 2007) Physicians tend to be quite vocal in support of tort reform, often arguing that high malpractice insurance rates are due to the tort system. If a link existed, this would become a powerful and legitimate reason to support tort reform.

A causation link between the current tort system and medical malpractice premiums has yet to be proven. Insurance premiums for physicians may be high, but this is not because of the current tort system. Professor Tom Baker wrote an entire book debunking the myths behind tort reform and addressed insurance premiums in great detail. Baker found that increased malpractice premiums had little or nothing to do with the alleged explosion of tort litigation and were instead just another component of the tort reform myth. For example, Baker notes that malpractice premiums are cyclical in nature and that "The sharp spikes in malpractice premiums in the 1970s, the 1980s, and the early 2000s are the result of financial trends and competitive behavior in the insurance industry, not sudden changes in the litigation environment." (Baker & Viscusi, 2009) Baker also noted that even if malpractice premiums were exploding, they account for less than 1 percent of total health care costs and thus are unlikely to be precluding physicians from