For over a decade, proponents of tort reform have argued medical malpractice reform is needed to reduce spiraling healthcare costs. If these reforms were implemented, tort reformers promised reduced healthcare costs. Opponents of tort reform argued medical malpractice reforms would have no significant impact on healthcare costs, as medical malpractice lawsuits account for less than 1% healthcare costs. So, who was correct?
According to recent figures, the total number of medical malpractice payouts on behalf of doctor fell to its lowest level in a decade–down 28% since 2003. In addition, the total value of medical malpractice payouts is also significantly down. However, the nation’s healthcare expenses did not followed suit. Instead, healthcare costs have risen a startling 58% in the last decade. This confirms that medical malpractice costs have no appreciable impact on healthcare costs. Indeed, if medical malpractice costs were a major driver behind soaring healthcare costs, the substantial reduction in medical malpractice payouts over the last decade should have significantly lower healthcare costs.
In 2012, the total number of medical malpractice payouts was 9,379 compared to 16,565 in 2001. In 2012, the total value of medical malpractice payouts was $3.14 billion versus $4.41 billion in 2003. Despite these significant reductions in medical malpractice payouts, healthcare costs over doubled in the last decade.