In: Economics
Tort Reform- One potential area for health care system savings is the issue of tort reform. Based on what you have learned in this module, what are the major issues of tort reform? Do you believe there should be a limit on damages? What are the ethical issues regarding this debate?
Answers:
Tort reform advocates focus on personal injury common law rules in
particular. In the United States, tort reform is a contentious
political issue. US tort reform advocates propose, among other
things, procedural limits on the ability to file claims, and
capping the awards of damages.
The legal way of saying personal injury law is "tort law." It lays
down the duties of a person who injures another. In our country,
tort law serves to:
Top Ten Tort Reform Measures
1 Limits of non-economic damages
2 Evidence of collateral source payments is permitted
3 Limits on attorney contingency fees
4 Advance notice of a claim
5 Statute of limitations
6 Periodic payments of future damages
7 Alternative dispute resolutions
8 Good Samaritan provision
9 Limitations on joints and several liability
10 Expert affidavits
tort reform in this issue of the Journal of General Internal
Medicine deftly tackles a number of the major issues in this
vexatious policy area. The tort reform is a necessary but not
sufficient measure to bend the health care cost curve. Although
defensive medicine costs are small as a proportion of aggregate
national health expenditures, without reforms to address the
liability fear that drives defensive practices, it will be
difficult to move physicians toward cost-effective health care
delivery.
Studies of clinical behavior at the system or population level
cannot disentangle motivations, and rarely can account for the
clinical benefit of “defensive” practices. Survey research can
probe personal motivations, but has different limitations. Because
many physicians are attuned to defensive medicine as a problem, and
their professional organizations agitate prominently against it,
self-report data will always be prone to a “socially-desirable
response bias”. In sum, the conceptual complexity of defensive
medicine means that the even the most rigorous health services
research will struggle to isolate its role as an independent driver
of clinical decision making and its effects on the quantity and
quality of services delivered. Consequently, it is difficult to
draw strong conclusions about how much savings will result if
defensive medical practice is reduced.
The medical liability system is replete with fundamental problems
of misalignment that go far beyond defensive medicine. The most
serious is the well-documented mismatch between negligent injuries
and malpractice litigation4–6. Most instances of negligence do not
result in malpractice claims, many malpractice claims do not
involve negligent injuries, and the outcomes of malpractice claims
often do not match the merits of the claim. Although this mismatch
itself drives defensive medicine, because physicians cannot feel
secure that practicing reasonable care will protect them from being
sued, the point is consistently lost in discussions of the need to
curb defensive medicine. Liability reform should focus on ways to
enhance the system’s ability to achieve its core objectives:
spurring improvements in quality and safety and compensating
injured patients. Even if the goal of liability reform is more
limited, to simply reducing defensive medicine, it is still
imperative to address the mismatch problem.
conventional tort reforms like caps on noneconomic damages seek
merely to limit the economic cost of malpractice litigation for
providers, not to change fundamental aspects of how the liability
system works.
The mismatch problem, high overhead costs, and the focus on
individual culpability rather than systems breakdowns are all
untouched by traditional reforms. For example, limiting the amount
of damages for which nonprofit hospitals can be held liable, as
some states do, can lead plaintiffs to target individual
physicians. Pretrial screening panels add a layer of administrative
costs to the litigation process, leading to higher litigation costs
overall.
Conventional tort reforms also may not achieve the kind of quid pro
quo that Hermer and Brody contemplate. They hope that tort reform
will make physicians more likely to practice cost-effective care
and to acquiesce to policy and practice changes that lower their
reimbursement. Although damages caps have been shown to be
associated with lower health care utilization in some contexts, as
Hermer and Brody discuss, they address only one dimension of the
fear that leads physicians to practice defensively. They limit the
economic consequences of being sued, but do not necessarily reduce
the risk of suit itself, nor any of the unpleasant aspects of the
adversarial litigation process.