Reducing the Deficit by Limiting Medical Malpractice Claims

M.L.Lentz

Guest
There has been a lot of publicity on the plastic surgeon, Windell Boutte, and her dancing videos during multiple live operations. Unfortunately, her focus on publicity rather than patient safety has resulted in malpractice claims from many patients, including one with permanent brain damage following her surgery (Weiss, 2018). If one surgeon, in a profession of thousands, can cause a surplus of malpractice cases, it could result with a significant portion money contributed to malpractice insurance for health care providers. The Congressional Budget Office (CBO) provides health options for reducing the health care budget deficit including limiting medical malpractice claims healthcare providers can receive (2016).

Under the new option of limited claims two objectives will continue to be followed: “to deter providers’ negligent behavior (by forcing those who are found at fault to pay damages) and to compensate patients for economic losses (such as lost wages and medical expenses) and noneconomic losses (often called pain and suffering)” (CBO, 2016). The changes that began in 2018 included noneconomic damage cap at $250,000 and economic damage cap at $500,000 or double the value of damages, whichever is greater. Additional details on what this option includes are on the document provided by the CBO.

Hospitals with active surgical operating rooms (OR) and intensive care units (ICUs) are at a higher risk for malpractice due to the high infection risk during open surgery and post-operation care. As a result, many measures are taken in the OR and ICUs to ensure aseptic techniques are utilized. In addition to these measures, the new limit on medical malpractice claims could be additional motivation for practitioners to perform at the highest, safest level possible. The CBO claims effects of changes, such as these limits, may cause providers to reduce intensity of services to limit side effects that would be harmful and result in unintended harm (2016). These actions could assist in the reduction of the deficit in health care. According to the 2018 Medical Malpractice Annual Report, the loss ratio for 2017, which does not include defense and cost containment expenses, was 69.7%, a new record since 2002 (Kreidler, 2018). The CBO states “placing limits on malpractice claims would decrease the prescription, and therefore the use, of health care services to a small extent because providers who faced a smaller risk of legal action might order fewer diagnostic procedures” (2016). The health option of limiting malpractice claims could reduce mandatory spending by $55 billion between 2017-2026 (CBO, 2016).

No solution is foolproof but there are some options that can aid in reducing the deficit. Limitation of claims made due to malpractice can not only motivate practitioners to provider safer care, but it can help save billions of dollars between 2017 and 2026. There are many other options to assist in decreasing the deficit, but this would be a good option to begin the challenge.


References

Congress of the United States Congressional Budget Office (CBO). (2016, December). Options for Reducing the Deficit: 2017-2026; Chapter 5, Health Options. Pages 259-261. Retrieved from www.cbo.gov/publication/52142

Kreidler, Mike. (2018). 2018 Medical Malpractice Annual Report. Office of the Insurance Commissioner. Retrieved from https://www.insurance.wa.gov/sites/default/files/2018-08/2018-med-mal-report.pdf

Weiss, Debra C. (2018, June 5). New Suit is filed against dancing cosmetic surgeon, this time for alleged privacy violation. ABA Journal. Privacy law. Retrieved from http://www.abajournal.com/news/article/new_suit_is_filed_against_dancing_cosmetic’]\_surgeon_this_time_for_alleged_pr