Claims, Errors, and Compensation Payments in Medical Malpractice Litigation
David M. Studdert, LL.B., Sc.D., M.P.H., Michelle M. Mello, J.D., Ph.D., M.Phil., Atul A. Gawande, M.D., M.P.H., Tejal K. Gandhi, M.D., M.P.H., Allen Kachalia, M.D., J.D., Catherine Yoon, M.S., Ann Louise Puopolo, B.S.N., R.N., and Troyen A. Brennan, M.D., J.D., M.P.H.
Background In the current debate over tort reform, critics ofthe medical malpractice system charge that frivolous litigation— claims that lack evidence of injury, substandard care,or both — is common and costly.
Methods Trained physicians reviewed a random sample of 1452closed malpractice claims from five liability insurers to determinewhether a medical injury had occurred and, if so, whether itwas due to medical error. We analyzed the prevalence, characteristics,litigation outcomes, and costs of claims that lacked evidenceof error.
Results For 3 percent of the claims, there were no verifiablemedical injuries, and 37 percent did not involve errors. Mostof the claims that were not associated with errors (370 of 515[72 percent]) or injuries (31 of 37 [84 percent]) did not resultin compensation; most that involved injuries due to error did(653 of 889 [73 percent]). Payment of claims not involving errorsoccurred less frequently than did the converse form of inaccuracy— nonpayment of claims associated with errors. When claimsnot involving errors were compensated, payments were significantlylower on average than were payments for claims involving errors($313,205 vs. $521,560, P=0.004). Overall, claims not involvingerrors accounted for 13 to 16 percent of the system's totalmonetary costs. For every dollar spent on compensation, 54 centswent to administrative expenses (including those involving lawyers,experts, and courts). Claims involving errors accounted for78 percent of total administrative costs.
Conclusions Claims that lack evidence of error are not uncommon,but most are denied compensation. The vast majority of expendituresgo toward litigation over errors and payment of them. The overheadcosts of malpractice litigation are exorbitant.
Source Information
From the Harvard School of Public Health (D.M.S., M.M.M., A.A.G., A.L.P., T.A.B.), Brigham and Women's Hospital (A.A.G., T.K.G., A.K., C.Y., T.A.B.), and the Harvard Risk Management Foundation (A.L.P.) — all in Boston.
Address reprint requests to Dr. Studdert at the Department of Health Policy and Management, Harvard School of Public Health, 677 Huntington Ave., Boston, MA 02115, or at studdert{at}hsph.harvard.edu.
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