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LETTER

Beyond MICRA: New Ideas for Liability Reform

right arrow Leo Uzych, JD, MPH

1 October 1995 | Volume 123 Issue 7 | Page 554


TO THE EDITOR:

In its position paper, the American College of Physicians [1] identifies liability reforms emanating from the California Medical Injury Compensation Reform Act (MICRA), including caps on damages, limits on attorney contingency fees, and offsets of awards from collateral sources. These reform mechanisms, however, remain highly contentious and may adversely affect the public health.

One major academic study found that 98% of all adverse events caused by negligence did not result in malpractice claims [2]. Indeed, the failure of most negligence cases to enter the system is probably the biggest problem plaguing the malpractice system. Contingency-fee caps will probably make it even harder for prospective plaintiffs with meritorious cases to obtain experienced representation. If a limit is imposed on plaintiff's attorney fees, shouldn't limits also be imposed on the ability of defendant providers to secure experienced representation, perhaps by limiting fees that defendants' attorneys may accept [3]?

Thought must be devoted to the prospect that damage caps may substantially impair the ability of injured patients to receive fair compensation.

Malpractice reform targeted at offsetting awards from collateral sources may improperly remove the burden of financial responsibility from the wrongdoer and thus may amount to an undeserved "windfall" for the wrongdoer [3].

Suggestions that restructuring the extant malpractice system may put a sizable dent in the overall cost of the health system are spurious. The country now spends about $1 trillion annually on health care; the American Medical Association has estimated that about $5.6 billion is spent annually on insurance premiums [4]. The American Medical Association has also estimated that about $15 billion is expended annually on defensive tactics [4]. However, no real agreement exists concerning what tactics constitute "defensive" medicine.

Ultimately, the substantial amount of injury to patients associated with medical management must be reduced [5]. This is the real key to ameliorating the malpractice crisis.


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Wallingford, PA 19086


References
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1. American College of Physicians. Beyond MICRA: new ideas for liability reform. Ann Intern Med. 1995; 122:466-73.

2. Localio AR, Lawthers AG, Brennan TA, Laird NM, Hebert LE, Peterson LM, et al. Relation between malpractice claims and adverse events due to negligence: results of the Harvard Medical Practice Study III. N Engl J Med. 1991; 325:245-51.

3. Ominsky AJ. Health care reform and medical malpractice: health care reform does not require tort reform. The Legal Intelligencer/Pennsylvania Law Weekly Health Care Reform Supplement. 1994; August 15:S20-1.

4. Freudenheim M. Dealing in myths on malpractice. New York Times. 1992. October 13:D2(col 1).

5. Brennan TA, Leape LL, Laird NM, Hebert L, Localio AR, Lawthers AG, et al. Incidence of adverse events and negligence in hospitalized patients: results of the Harvard Medical Practice Study I. N Engl J Med. 1991; 324:370-6.

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