Last year marked the first time since 2003 that there was an increase in the total medical malpractice payout amounts, as well as the total number of payouts, according to the 2014 Medical Malpractice Payout Analysis done by Diederich Healthcare, a Carbondale, IL-based provider of medical malpractice insurance. Here are some findings of the analysis, which is based on data from the National Practitioner Data Bank:
• Dollars in payouts grew to $3.73 million, which is 4.7% more than in 2012.
• California saw the largest year-over-year increase in payout money, with payouts up $51 million compared with 2012.
• When divided by patient type, most (45%) medical malpractice payment amounts were for claims regarding an inpatient case, while 38% of payouts were for claims involving outpatient cases.
• Most allegations (33%) pertained to diagnoses, but surgery (28%) and treatment (18%) also comprised considerable portions of payout money.
The top five states for medical malpractice payouts, per capita, were New York ($38.83), Pennsylvania ($24.76), New Jersey ($23.24), Maryland ($22.37), and Connecticut ($20.98). The bottom five states for medical malpractice payouts, per capita, were North Dakota ($2.96), Texas ($3.02), Wisconsin ($3.07), Mississippi ($4.15), and Indiana ($4.18)
"From 2003 to 2012, the total payout amounts had declined in each subsequent year, but 2013 brought a sharp change in this trend, with total payouts actually increasing from 2012 by $168 million, or 4.7%," says Matthew Thompson, JD, assistant vice president of the northeast region for Diederich Healthcare.
Additionally, 38 states experienced an increase in total payout amounts as compared to 2012. However, New York, the state that historically has had the highest total payout amount in the nation, experienced a decrease from 2012 of more than $73 million in payouts. "While it is too early to determine if this is the beginning of a new trend or simply an anomaly, we continue to monitor the data to see what 2014 brings," says Thompson.
Despite the payout amount increase in 2013, the total payout amounts and total number of payouts continue to be significantly less than the previous decade. The overall reduction has led to decreased malpractice insurance premiums for physicians and an increase in insurance carrier competition, says Thompson.
"This is good news for physicians wishing to maintain their independence through private practice and who are attempting to reduce a significant overhead cost: malpractice insurance premium," he says.
