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Investigating medical malpractice victim compensation: micro-level evidence from a professional liability insurer's

Samantha Bielen1, Peter Grajzl2,3, Wim Marneffe1

  • 1Faculty of Business Economics, Hasselt University, 3500, Hasselt, Belgium.

The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care
|August 10, 2019
PubMed

Insights

This study identifies key factors influencing medical malpractice compensation. The incident resolution process, rather than provider characteristics, significantly predicts victim payouts.

Area of Science:

  • Medical Law
  • Health Economics
  • Insurance Studies

Background:

  • Medical malpractice claims involve complex resolution processes.
  • Understanding compensation determinants is crucial for fairness and efficiency.

Purpose of the Study:

  • To identify predictors of medical malpractice victim compensation using micro-level data.
  • To investigate determinants of indemnity payment incidence and amount.
  • To analyze the impact of the incident resolution process on compensation.

Main Methods:

  • Analysis of micro-level data from a Belgian professional liability insurer.
  • Tracking malpractice incidents from insurer notification to file closure.
  • Statistical modeling to address sample selection concerns and identify predictors.

Main Results:

  • Provider specialty risk predicts indemnity amount indirectly through sustained injury type.
  • Little evidence of vertical or horizontal inequities in indemnity payments.
  • Features of the incident resolution process are significant predictors of victim compensation.

Conclusions:

  • The incident resolution process plays a critical, often overlooked, role in determining malpractice compensation.
  • Focusing on resolution process factors can improve understanding and potentially fairness in compensation.
  • Further research into specific resolution mechanisms is warranted.
Keywords:
EquityMedical malpracticeProvider specialty riskResolution processVictim compensation

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