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Have state caps on malpractice awards increased the supply of physicians?

William E Encinosa¹, Fred J Hellinger

¹Center for Delivery, Organization, and Markets, Agency for Healthcare Research and Quality (AHRQ), Rockville, Maryland, USA. wencinos@ahrq.gov

Health Affairs (Project Hope)

|June 2, 2005

Abstract:

Twenty-seven states have laws that cap payments for noneconomic damages in malpractice cases. In this study we examined whether these laws have increased the supply of physicians, using county-level data from all fifty states from 1985 to 2000. Counties in states with a cap had 2.2 percent more physicians per capita because of the cap, and rural counties in states with a cap had 3.2 percent more physicians per capita. Rural counties in states with a dollar 250,000 cap had 5.4 percent more obstetrician-gynecologists and 5.5 percent more surgical specialists per capita than did rural counties in states with a cap above dollar 250,000.

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