Escalating malpractice costs: what's behind them...what preventive procedures can be taken to reduce claims

Medical malpractice actions are increasing at an alarming rate. Within the past five years, the incidence of such claims has escalated to such an extent that many physicians in hospitals are finding it difficult to obtain insurance. When insurance has been obtained, its cost has approached the prohibitive. To understand what's behind this increase in actions and costs, a review of the law of negligence, the law that most affects medical malpractice, is in order. With such understanding, those most affected financially by the escalation in malpractice costs (notably the health facility and the physician) can consider what preventive procedures can be taken to eliminate a substantial percentage of potential lawsuits. Without taking such preventive action, none of the current methods of confronting malpractice costs--private carriers, co-insurance, group policies, self-insurance, or going bare--will be effective for any period of time in keeping those costs in check.