Some Facts on Tort Reform
How many references to "tort reform" have you heard since we started the national debate over healthcare reform? No town hall discussion was complete without hearing at least one participant tout, usually against health care reform, offer tort reform as a solution to the problem. Republicans in the House and Senate have offered no healthcare reform plan of their own but tort reform is one of their most frequent suggestions. And we rarely ever hear any of the folks pushing tort reform quantify the need for or benefit of such a reform. Tort reform is just another talking point they employ to distract focus from the real problems and a real solution.
Michael Hiltzik took a look at tort reform this week in his column in the Los Angeles Times (h/t CJR's The Audit). Hiltzik begins by looking at the chief complaint of frivolous lawsuits or in the case of health care, medical malpractice. He then took the step of looking for factual information to determine how much of a problem exists:
"It can be hard to tell until late in the litigation if there's really no claim," Michelle Mello, an expert on malpractice at Harvard’s School of Public Health, told me. An extensive study she helped conduct of malpractice case files showed that frivolous cases, as usually defined, are rare -- and those that do get brought usually don't yield a payment to the plaintiff.
...
The truth is that medical liability isn't a big driver of health costs overall. Studdert estimates the cost of malpractice litigation, in court and through defensive medicine, at roughly 2% to 3% of all U.S. healthcare spending -- in other words, no more than $50 billion out of a total annual bill of $1.7 trillion. (You'll hear estimates as high as $200 billion from outfits like the American Medical Assn., which is the antithesis of an objective source.)
Hiltzik does suggest some tort reform is needed. But he cautions that the solution most frequently touted is flawed. States where legislation was passed to cap awards given in medical malpractice lawsuits have not seen lower healthcare costs or lower malpractice insurance premiums. And there are negative consequences to those with legitimate claims:
Not the victims of medical error, at least not fairly: A Rand Corp. study in 2004 found that the cap fell disproportionately on "those with small economic losses but great damage to the plaintiff's quality of life."
The disproportionate must be balanced by some part realizing a greater benefit. Who would that be? Read the column where Hiltzik has provided some real numbers that show insurers may be the biggest winners.
And bookmark the Harvard study for future reference when you end up in one of those conversations with someone pushing tort reform as a real solution for healthcare reform. CJR's Ryan Chittum read the study and added this in his post in The Audit:
I looked at the study and it found that the majority of cases were really injuries caused by medical error. Some 37 percent were real injuries not caused by medical error. Just 3 percent were cases with no injury.
More interesting, though, is that the study found that claims due to actual medical error accounted for 84 percent of total costs among 1,500 cases it examined. If that holds broadly, it would mean just $8 billion a year of that $50 billion total is spent on cases with no medical error (it’s unclear how much of the defensive medicine portion would be due to this minority of cases). And not all of those cases are frivolous.
And as Hiltzik points out, the researchers found that more legitimate claims get denied than illegitimate claims get money.
Some people will not be persuaded by the facts. But it is safe to assume many of the people simply repeating talking points they have heard have never heard the facts about tort reform.

Fact is...
Submitted by Connecticut Man1 on Sun, 10/04/2009 - 20:12.Harsher penalties by medical boards that could impose nationwide penalties would do more to solve the problem. There is a reality that certain operations and procedures are a little more likely to have bad outcomes... But there are some doctors that make many mistakes and when they do finally lose their license? They go to another state, get relicensed and become repeat offenders.
If we had a combination of single payer healthcare and safety nets that would help those seriously injured or incapacitated by medical malpractice AND harsher penalties from medical boards? Then it would make sense to tackle tort reform.
I agree
Submitted by standingup on Sun, 10/04/2009 - 20:46.there is room for improvement with providers in the area of self-policing and would like to see some figures on the impact that could have on health care costs. Errors will never be eliminated but there are steps that can be taken to reduce errors and problem areas. I have long believed we need systemic reform with health care where we see changes from every party involved including patients, providers and insurers.
deltadoc
Submitted by standingup on Sun, 10/04/2009 - 13:12.Thank you. (Apologies for not being able to respond directly to your comment but for some reason I was only able to comment to the post?) I was glad to have run across this study via The Audit and LA Times.
The topic of tort reform is very familiar to several members of ePluribus as it has come up over and over again as we looked at faux grassroots organizations over the years. As you noted, it is typically (though not always) Republicans supported by big business, insurance, tobacco, and anyone else with a bottom line that is impacted by paying damages for liabilities. Those groups have been very successful in influencing the national discourse through campaigns of disinformation on lawsuits, to the point where individuals and health care providers actually support measures that are against their best interests.
I think we need a lot more sunlight on tort reform for people to have a solid grasp of the issues involved. Otherwise, we will continue to see people pushing for reform that will cost them, both directly and indirectly, in ways they had not imagined
I recognize the 'bipartisan' nature of support
Submitted by deltadoc on Sun, 10/04/2009 - 14:25.that 'tort reform' has achieved (I suspect that is mostly the Baucus-Blue Dog types) but think that it's important to understand that Rove was a very important propellant of the issue, for and with funding by Bob Perry, on a trajectory straight out of races for the Texas Supreme Court, and nationally, from the Governor's Ranch.
For that boost think Big Tobacco.
Yes
Submitted by standingup on Sun, 10/04/2009 - 16:30.Rove has used and furthered the issue to his full benefit. I am pretty familiar with the origins thanks to a lot of work by luaptifer, susie dow and a few others. It goes back well into the 90's with tobacco companies and the U.S. Chamber of Commerce (which to a large extent represents the interests of insurance) and the entire Republican party. I believe the Democrats that join in or are willing to avoid refuting the propaganda are those compromised and influenced by the support they are receiving from the pro-tort reform interests.
It's almost as if you did this for me
Submitted by deltadoc on Sun, 10/04/2009 - 12:41.Thank you. This is an important report that should enter the mainstream debate as a counter to -- by now -- reflexive talking points of those who want to assure the greatest profit with least accountability.
I've only begun reviewing the underlying fact base but your New England Journal of Medicine citation presents important results, in summary.
Right off the bat, the report guts the frivolous lawsuit claim, so much at the heart of Karl Rove and GWB's ability to make strange bedfellows of tobacco, insurance, and medical associations.
DeltaDoc -- had to pull your signature widget.
Submitted by GreyHawk on Sun, 10/04/2009 - 15:52.It was messing up the page formatting.
:(
Sorry.
Thanks
Submitted by standingup on Sun, 10/04/2009 - 16:20.for checking into the problem. I was about to pull my hair out trying different browsers to see if it was a browser related issue or what?
It was Sebelius's fault
Submitted by deltadoc on Sun, 10/04/2009 - 16:54.:-)
and Dahm Emanuel
Submitted by standingup on Sun, 10/04/2009 - 16:57.typo intended ;-)
Boy, that's good
Submitted by deltadoc on Sun, 10/04/2009 - 16:15.thank you. I thought it was just me for a minute ;-)
Wow...it worked...
Submitted by GreyHawk on Sun, 10/04/2009 - 17:21....the strike team said that when the anaesthetic wore off it would induce a mild case of amnesia and you'd forget the whole incident about them breaking in and snipping off your...
...well, you probably wouldn't have noticed anyway. Nevermind...
Yeah -- it was purely your profile. Not you at all.
:)
~innocently whistles a tuneless ditty and walks casually away~