1 When Tort Resolutions Are "Wrong": Predictors of Discordant Outcomes in Medical Malpractice Litigation David M. Studdert and Michelle M. Mello ABSTRACT Tort Litigation is frequently criticized for producing outcomes that do not match merit. We examined 1,452 closed malpractice claims from five insurers to obtain objective clinicatjudgments of their underlying merit. We then analyzed predictors of discordant outcomes-payment of apparently nonmeritorious claims and nonpayment of apparently meritorious claims. In multivariate analyses, the odds of both forms of discordant outcome were significantly higher when reviewers judged it a close call as to whether a medical error had occurred. The odds of nonmeritorious claims receiving compensation were significantly higher among cases involving infants and health care facility codefendants and significantly Lower when claims were decided by trial verdict. The strongest predictor of rejection of meritorious claims was resolution by trial verdict, which suggests that patients who have been harmed by error fare poorly when their claims are decided by juries. 1. INTRODUCTION In 1993, the investigators in the Harvard Medical Practice Study, the best-known study of the epidemiology of medical injury and malpractice claiming, commented that the American medical liability system is like a traffic cop who "regularly [gives] out more tickets to drivers who go DAVID M. STUDDERT is Professor of Law at the School of Law and the School of Population Health, University of Melbourne. MICHELLE M. MELLO is Associate Professor of Health Policy and Law at the Harvard School of Public Health. This study was supported by grants from the Agency for Healthcare Research and Quality (HS ) and the Harvard Risk Management Foundation. Studdert was also supported by a Federation Fellowship from the Australian Research Council. The authors thank Allison Nagy for assistance in compiling the data set. We also thank Karen Lifford, Tom McElrath, and Martin November for assistance with the obstetric component of the study; Selwyn Rogers and Uournal of Legal Studies, vol. 36 (June 2007)] by The University of Chicago. All rights reserved /2007/360S2-0003$10.00
2 S48 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 through green lights than to those who go through red lights" (Weiler et al. 1993, p. 75). This pronouncement of the tort system's inaccuracy in matching compensation awards to the merits of claims has become a staple in policy debates over medical liability reform. Assertions that the system is a lottery in which compensation awards are little better than random are commonly heard from the medical community and others who advocate far-reaching reforms (U.S. House 2003; U.S. Department of Health and Human Services 2002) Empirical research lends some support to accusations about the system's inaccuracy but presents a more nuanced picture than is usually admitted by combatants in the tort reform debates. For example, in Studdert et al. (2006), we reported that in resolving malpractice claims the tort system "got it right" about three-quarters of the time-that is, about three in four claims that lacked merit were denied payment, while three in four meritorious claims received payment. This finding proved grist for both sides. The American Medical Association (2006) lamented the costs of dealing with groundless litigation and focused on another of the study's findings: one-third of claims that were brought lacked merit. The American Trial Lawyers Association (2006), on the other hand, declared that the data showed there was much less frivolous litigation that many reformers have claimed and emphasized the finding that most nonmeritorious claims did not receive payment. Indeed, the policy message such research findings send regarding the performance of the tort system is not sharp. How much imprecision is too much and how much is acceptable, given that litigation outcomes are essentially a product of complex human judgments and interactions between opponents with different utility functions? These are contentious normative questions. Improved understanding of why discordant outcomes occur, however, can inform these questions and is amenable to empirical investigation. Using data from more than 1,400 malpractice claims that were closed at five medical liability insurers, we investigated the characteristics of cases with discordant outcomes. To detect discordance, we relied on physician reviews of the litigation file and associated medical records. Our analysis then focused on those claims in which the reviewer's judgment and the case outcome differed. Atul Gawande for assistance with the surgical component; and Tejal Gandhi, Troy Brennan, Allen Kachalia, and Eric Thomas for assistance with the medication and diagnostic components.
3 PREDICTORS OF DISCORDANT OUTCOMES / S49 2. BACKGROUND A number of previous studies have investigated the relationship between the merit and outcomes of medical malpractice claims. The findings vary widely (Table 1). Perhaps the strongest study is the Cheney et al. (1989) analysis of 1,004 anesthesia claims that were closed at 17 insurers in the 1970s and 1980s. The study used anesthesiologists who were unaffiliated with the involved insurers to review the claim files. The investigators found that 54 percent of claims involved substandard care (that is, were meritorious). Of these, 10 percent did not receive payment. Among the 46 percent of cases that were nonmeritorious, 42 percent received payment. Substandard care was found to be a significant multivariate predictor of payment, but predictors of discordant outcomes were not examined. A study by Taragin et al. (1992) is frequently referenced among the leading studies of claim outcomes. This study examined 8,231 claims handled by one New Jersey liability insurer between 1977 and The investigators used judgments regarding the defensibility of the claim made by internal peer reviewers at the insurer as a proxy for the claim's underlying merit. They found that 62 percent of claims were defensible, 25 percent were indefensible, and 13 percent were indeterminate. Payment rates among these categories of claims were 21 percent, 91 percent, and 59 percent, respectively. The severity of the injury was a significant predictor of plaintiff payment, but the study did not examine whether it was a significant predictor of discordant outcomes. Overall, the study identified a moderate degree of discordance: 9 percent of meritorious cases went unpaid, and 21 percent of nonmeritorious claims were paid. Another widely cited study is Farber and White's (1994) analysis of claims against medical staff from a single hospital. Their sample consisted of 420 claims relating to incidents that occurred between 1976 and 1989 and were resolved by mid Merit was again determined by internal clinical reviews. The study found that 42 percent of claims involved "good"-quality care, 35 percent involved "bad"-quality care, and 23 percent were ambiguous. The proportions of claims in these categories that received payment were 16 percent, 66 percent, and 45 percent, respectively. Thus, 34 percent of meritorious cases went unpaid, and 16 percent of nonmeritorious cases were paid. The study did not investigate predictors of discordance. The bleakest picture of the accuracy of the medical malpractice system is painted by the Harvard Medical Practice Study (see Brennan, Sox,
4 44 U CC CE ca E 0~ CC ru 0 0v vu E 0 u Ea 0. 0 CP UN 0 oa t C ~ m C (-V) n Z Z 0 U0U 0~ 0 o
5 0 0 l -UU o \D (Aa 0 q\ W n0 *N-n 0-00e, C nf )r >0 4C) m(na n r, 00 -a 0.> Z 0 C) (A ( C) ZA u w w
6 S52 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 and Burstin 1996). The authors analyzed 46 malpractice claims closed as of 1995 for the presence of medical injury and negligence; these were claims they had previously evaluated using external physician-reviewers. The analysis determined that 80 percent of claims were nonmeritorious and that, of those, 69 percent received a payment. Among the 20 percent of cases with merit, 44 percent went unpaid. The presence of negligence was not a statistically significant predictor of payment. Once again, there was no modeling of predictors of discordance. Finally, our own previous study (Studdert et al. 2006) identified proportions of meritorious and nonmeritorious claims similar in size to those found by Cheney et al. (1989): 63 percent of 1,452 closed claims reviewed (the same sample analyzed in the present study) involved medical error, and 37 percent appeared to be nonmeritorious. Among meritorious claims, 27 percent did not result in a payment, while 28 percent of nonmeritorious claims received payment. These levels of discordance in claims resolution were substantially lower than those found in the Cheney et al. (1989) study. In sum, previous studies have found that percent of claims lack merit and that percent of nonmeritorious claims receive payment (Table 1). The wide ranges for these statistics probably stem from a variety of factors, including true variation across insurers, regions, and time. However, as we noted in our previous paper, each of the studies has important weaknesses. Some use small samples of claims (Sloan et al. 1993; Brennan, Sox, and Burstin 1996); some focus on a single hospital (Farber and White 1994), insurer (Taragin et al. 1992), or specialty or injury type (Cheney et al. 1989; Phillips et al. 2004); and some use very limited information in determining merit (Sloan et al. 1993). The most troubling limitation, which particularly affects the studies by Taragin et al. (1992), Farber and White (1994), and Phillips et al. (2004), is reliance on internal judgments about the claim's defensibility as a proxy for merit. Although there is usually a good deal of overlap between defensibility (the defendant's estimated likelihood of prevailing on the claim) and objective merit (the presence of negligence), the two concepts sometimes diverge. Defensibility judgments may incorporate consideration of factors extrinsic to merit, such as the seriousness of the harm, the quality of the plaintiff's attorney, and the likely attractiveness of plaintiff and defendant before a jury. An additional limitation of existing studies of discordance between merit and payment is that they are largely confined to the types of simple
7 PREDICTORS OF DISCORDANT OUTCOMES / S53 statistical correlations summarized above. To the best of our knowledge, none have attempted to isolate characteristics of claims or litigants that may be associated with discordant outcomes. In this study, we undertake that. The data come from litigation file reviews conducted by physicianreviewers who were not affiliated with the insurance companies and who were trained and directed to render clinical judgments about the presence of medical injury and error in the claim rather than about its defensibility. The data thus permit an exploration of the relationship between merit and litigation outcome in which various strategic factors that influence an insurer's decision to defend or settle a claim are not embedded in the measure of merit. Rather, controlling for merit, we seek to isolate some of those factors, or markers of them, and investigate their influence. 3. METHODS The methodological approach used in the parent study, data from which serve as the basis of this analysis, has been outlined in previous publications (Studdert et al. 2006; Rogers et al. 2006; Gandhi et al. 2006). We summarize here aspects of the data collection and analysis that have specific relevance to the current analysis Ciaims Data Five malpractice insurance companies based in four regions (the Northeast, mid Atlantic, Southwest, and West) participated in the study. Collectively, they covered approximately 33,000 physicians, 61 acute care hospitals (35 academic and 26 nonacademic), and 428 outpatient facilities. The study was approved by ethics review boards at the investigators' institutions and each review site. Data were extracted from random samples of closed claim files at each insurer.' The claim file is the repository of information accumulated by the insurer during the life of a claim. It captures a wide variety of data, including the statement of claim, depositions, interrogatories, and other litigation documents; reports of internal investigations; expert opinions from both sides; medical reports and records detailing the plaintiff's pre- and postevent condition; and, while the claim is open, medical records pertaining to the episode of care at issue. We reacquired the 1. The sampling methodology is described in detail in a technical appendix to Studdert et al. (2006).
8 S54 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 relevant medical records from the involved health care facility for the sampled claims. A claim was defined as a written demand for compensation for medical injury, which is the same definition we have used in previous studies (Weiler et al. 1993; Studdert, Brennan, and Thomas 2000). Anticipated claims or queries that fell short of actual demands did not qualify for inclusion in the study. We focused on four clinical categories and applied a uniform definition of each across insurers: (1) obstetric, (2) surgical, (3) missed or delayed diagnosis, and (4) medication. These categories collectively account for the injuries alleged in approximately 80 percent of all claims in the United States (Physician Insurers Association of America 2000; Chandra, Nundy, and Seabury 2005; National Practitioner Data Bank 2005). Insurers contributed to the study sample in proportion to their annual claims volume. The number of claims by site varied, from 84 to 662 (median = 294). One site contributed obstetric claims only, another had claims in all clinical categories except obstetrics, and the remaining three sites contributed claims in all four clinical categories CLaim File Review The claim file reviews were conducted on the premises of the participating insurers or at facilities they insured. The reviews were performed by physicians who were board-certified attending physicians, fellows, or final-year residents in surgery (surgical claims), obstetrics (obstetric claims), or internal medicine (diagnosis and medication claims). Physician-investigators from the relevant specialties trained the reviewers in the content of claims files, use of the study instruments, and confidentiality procedures in 1-day sessions, which were conducted on-site. The reviewers were also assisted by a detailed manual. Reviews took 1.6 hours per file on average and were conducted by one reviewer. A sequence of four instruments guided the review. Figure 1 provides an overview of the process and locates the key determinations made by the reviewers. For all claims, insurance staff recorded administrative details of the case, and clinical reviewers recorded details of the adverse outcome the patient experienced, if any. Reviewers scored adverse outcomes on a 9-point severity scale ranging from emotional injury only to death. This scale was developed by the National Association of Insurance Commissioners (Sowka 1980) and has been used in previous research (Thomas et al. 2000). In situations in which the patient ex-
9 loll I.0 o5 I 0 Ẹ cs > L0 0 a 0! g~.s.0
10 S56 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 perienced multiple adverse outcomes, reviewers scored the most severe injury. Next, reviewers considered the potential contributory role of a series of factors in causing the patient's adverse outcome. The contributing factors were selected on the basis of an exhaustive review of the patient safety literature in 2001 and spanned causes linked to cognitive errors by individual providers (for example, error of judgment or failure of vigilance or memory) and system breakdowns (for example, failure of supervision, inadequate staffing, hand-off problems). Reviewers then judged, in light of all available information and their decisions about contributing factors, whether the adverse outcome was due to a medical error. We used the Institute of Medicine's broad definition of error, namely, "the failure of a planned action to be completed as intended (i.e. error of execution) or the use of a wrong plan to achieve an aim (i.e. error of planning)" (Kohn, Corrigan, and Donaldson 2000). Reviewers recorded their judgment on a 6-point confidence scale ranging from 1, "ittle or no evidence that adverse outcome resulted from error/ errors," to 6, "[v]irtually certain evidence that adverse outcome resulted from error/errors." Claims that scored 4 ("[mlore likely than not that adverse outcome resulted from error/errors; more than but a close call") or higher were classified as having an error. The confidence scale and cutoff point were adapted from instruments used in previous studies of medical injury (Thomas et al. 2000). Finally, for the subset of claims judged to involve errors, reviewers completed a form tailored to the specific clinical category into which the claim fell. This form collected additional, detailed information about the clinical circumstances surrounding the error. Reviewers were not blinded to the litigation outcome, as it was logistically impossible to remove this information from the files. However, reviewers were instructed to ignore this outcome and exercise independent clinical judgment in rendering injury and error determinations. Training sessions stressed both that the study definition of error is not necessarily synonymous with the legal definition of negligence and that a mix of factors extrinsic to merit influence whether claims are paid during litigation Reliabitity of Reviewer 3udgments To test the reliability of the review process, a random subsample of 10 percent (n = 148) of the files were re-reviewed by a second reviewer who was blinded to both the existence and the results of the prior review.
11 PREDICTORS OF DISCORDANT OUTCOMES / S57 We used kappa scores to measure the interrater reliability of the injury and error determinations (Landis and Koch 1977).2 Using the recommendations of McGinn et al. (2004) for qualitative interpretation of kappa scores, the reviewers' agreement with respect to the injury determination was "substantial," bordering on "almost perfect" (kappa =.78; 95 percent confidence interval [CI] = ). Agreement with respect to the error determination also fell in the substantial range, but it bordered on "moderate" (kappa =.63; 95 percent CI = ). Reliability of the error judgments varied considerably across the four clinical categories (operative,.80; medication,.76; obstetrics,.56; diagnosis,.42). Exclusion of claims in which the primary reviewer classified the error determination as a close call (scores of 3 and 4) boosted substantially the level of agreement on the presence of error (kappa,.80; 95 percent CI = ) Analyses The hand-filled data forms were electronically entered and verified by a professional data-entry vendor and sent to the Harvard School of Public Health for analysis. Additional validity checks and data cleaning were performed by study programmers. Analyses were conducted using the SAS 8.2 and Stata/SE 8.0 statistical software packages. We used bivariate analyses to investigate distinctive characteristics of claims with discordant outcomes-that is, claims in which the payment outcome (yes/no) did not match the error determination (yes/no). Specifically, we used Fisher's exact tests and t-tests to perform two comparisons: (1) among claims that did not involve error (hereafter, nonerror claims), paid versus unpaid claims, and (2) among claims that involved error (hereafter, error claims), unpaid versus paid claims. In other words, we compared discordant outcomes with their concordant counterparts, taking into account whether an error had occurred in underlying care. The candidate predictors we investigated were plaintiff's gender, plaintiff's age, defendant's specialty, whether there was a facility codefendant in the claim, severity of injury, claim type (operative, obstetric, missed or delayed diagnosis, medication), resolution by verdict, administrative expenses, insurer, and reviewer confidence. The reviewer con- 2. The kappa statistic is a measure of interrater reliability that corrects for the probability of agreement due to chance; the scale ranges from zero (agreement no better than random) to one (perfect agreement).
12 S58 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 fidence variable was constructed by collapsing the 6-point scale described above and in Figure 1 into three categories: high confidence in the determination of error (scores of 1 and 6), moderate confidence (scores of 2 and 5), and close calls (scores of 3 and 4). To simplify presentation and analysis, we also grouped scores on the 9-point severity scale into five categories: emotional (score of 1), minor (2-3), significant (4-6), major (7-8), and death (9). Candidate predictors that attained a p-value of less than.2 in bivariate analyses were included as explanatory variables in multivariate regression analysis. We ran two logistic regression models. The dependent variable in both models was a binary variable distinguishing claims that resulted in payment from those that did not. One model used the data from nonerror claims to test predictors of payment; the other model focused on error claims and predicted nonpayment. We refer to the patient who allegedly sustained the injury as the plaintiff throughout this study, even though some claims are brought by third parties on the injured patient's behalf-claims involving infants and deaths, for example. Payment amounts and administrative expenses were converted to 2004 dollars using the Consumer Price Index. 4. EMPIRICAL RESULTS 4.1. Sampte Characteristics The sample consisted of 1,452 closed claims. The year in which they were filed ranged from 1980 to 2003, with 68 percent of them filed in 1994 or later. Closure year ranged from 1984 to 2004, with 83 percent closed in 1995 or later and 62 percent in 1998 or later. Fifteen percent of claims reached a trial verdict; the rest were resolved out of court. Overall, 56 percent of claims resulted in compensation. However, plaintiffs lost most trials, prevailing in only 19 percent, compared with 62 percent of claims resolved out of court. Characteristics of plaintiffs, defendants, and injuries in the study sample and basic descriptors of the litigation such as the claims' timing, type, and outcome are reported in Studdert et al. (2006) Errors A sample of 1,404 claims remained after eliminating claims that had no evidence of an injury (n = 37), those that disputed informed consent issues exclusively (n = 9), and two claims in which reviewers did not
13 PREDICTORS OF DISCORDANT OUTCOMES / S59 record a determination of error. This was the sample used to investigate the relationship between payment and injury, and all remaining results come from analyses of it. Reviewers had high confidence in the determination of error in 44 percent of claims (scores of 1 or 6) and moderate confidence in 30 percent (scores of 2 or 5); the remaining 23 percent were deemed close calls. Using a confidence score of 4 or greater as a cutoff, 889 claims (63 percent) involved error; against a confidence score of 5 or greater, 635 (45 percent) claims involved error Discordant Outcomes Table 2 shows the extent to which the claims were resolved concordant with the underlying evidence of error. We explored distinguishing characteristics of the claims with discordant outcomes (paid nonerror and unpaid error claims) by comparing them with their concordant counterparts (unpaid nonerror and paid error claims) Differences Identified in Bivariate Analyses. Among nonerror claims, bivariate analyses showed that payment was more common if the claim involved infants, nurse defendants, major injuries, or obstetricrelated injuries (see Table 3). Payment of nonerror claims was also disproportionately more likely in claims involving institutional codefendants, a difference that was concentrated among hospital codefendants. On the other hand, payment was less likely among nonerror claims involving elderly plaintiffs, orthopedic surgeons, emotional injuries, allegations of missed or delayed diagnosis, and claims that reached trial verdict. There were few significant bivariate differences between unpaid and paid error claims. Nonpayment of error claims was significantly less likely with medication claims and more likely with operative claims. Trials were also a strong risk factor for this type of discordant outcome: error claims decided by verdict had more than twice the rate of nonpayment as those decided out of court (57 versus 26 percent; p <.001). A couple of other differences were noteworthy. First, there was significant variation across liability insurers in the proportion of both paid nonerror claims (16-53 percent) and unpaid error claims (14-42 percent). Second, the likelihood of discordance increased with reviewer uncertainty about whether an error had occurred-a result that applied to both types of discordant outcomes. Specifically, discordance was significantly less likely among claims in which reviewers had a high degree
14 S60 / THE JOURNAL OF LEGAL STUDIES / VOLUME 36 (2) / JUNE 2007 Table 2. Errors by Payment Outcome Paid Not Paid n % n % Total No error Error Total ,404 Note. Percentages are calculated using row totals as the denominator. of confidence about the presence of error and significantly more likely among claims in which the determination of error was judged a close call Differences Identified in Multivariate Analyses. Several of the significant differences observed in bivariate analyses held in multivariate analyses (Table 4). Among error claims, the odds of nonpayment were more than four times greater if resolved by verdict rather than by outof-court settlement (odds ratio [OR] = 4.50, p <.001). Among nonerror claims, the odds of payment were approximately twice as high for claims involving injury to infants (OR = 2.27, p =.03) and facility codefendants (OR = 1.90, p =.01). In addition, payment odds were lower for nonerror claims decided by trial verdict (OR =.23, p <.001) and those involving emotional injury only (OR =.09, p =.03) or allegations of missed or delayed diagnosis (OR =.52, p =.03). The insurer and reviewer confidence variables were also significant predictors of both types of discordance in the adjusted models. Several of the interinsurer differences persisted, although multicollinearity problems precluded consideration of all of these variables in the model. The relationship between confidence levels and discordance trended in the expected direction: close calls were associated with higher odds of discordant outcomes, and relatively certain decisions with lower odds Sensitivity Anatysis Because the reliability of the determination of error was lower among close calls, we reran the multivariate analyses on a subsample of claims that excluded them. This reduced sample of 1,065 claims (635 with errors, 430 without errors) thus consisted of claims in which reviewers had recorded confidence scores of 1, 2, 5, or 6. Our main findings were robust to this subanalysis. There were few changes to the effect sizes and statistically significant predictors shown in Table 4. In the model
15 PREDICTORS OF DISCORDANT OUTCOMES / S61 predicting payment of nonerror claims, the coefficient for the infant plaintiff variable increased (OR = 2.95, p =.01), and the missed or delayed diagnosis variable was no longer significant (OR =.53, p =.07). In the model predicting nonpayment of error claims, the coefficient for the trial variable increased (OR = 5.25, p <.001). All other variables were essentially unchanged. Reviewers' awareness of the litigation outcomes may have influenced their levels of confidence in the judgment of error. An otherwise highconfidence determination that an episode of care did not involve error (score of 6 on the confidence scale) may have weakened to moderate confidence (5) or even a close call (4) in the face of documentation showing that the claim was paid. To the extent such drift occurred, our findings may overstate the inverse relationship observed between discordance and reviewer confidence. We checked for evidence of such drift in two ways. First, we reran the multivariate analyses in a subsample limited to claims with highconfidence determinations of error. The main results were essentially unchanged, with the exception of the facility codefendant variable in the model predicting payment of nonerror claims, which was no longer statistically significant. Second, we compared characteristics of claims with high- and lowconfidence determinations of error. There were several significant differences. Most notable, claims associated with diagnostic error, primary care physicians, hospital admissions, very severe injury, and trial verdicts had relatively lower levels of confidence. However, these results were not unexpected and are plausible. The first four characteristics are recognized markers of clinical complexity. The propensity of litigation to reach trial, on the other hand, has been linked in both theoretical and empirical scholarship to divergent expectations among the parties about the case's merit (Metzloff 1991). Hence, in tried claims, the reviewer likely confronted the same type of difficulty in assessing questions of causality and error as did the litigants. 5. DISCUSSION This study found that discordance between the merit and outcome of medical malpractice litigation occurs in approximately one in four cases and is associated with several distinctive case characteristics. The archetypal example of a case that is disproportionately likely to attract
16 I 0 00 * N a I 'r 00 00r0 o o li Iq ooe N N (~1 C4 m en " C4 N 0 ON C~ Cl 0. Z.; 0 an\o 00~ CN -cn ns 0000CNt mornn 00 In - C "0 ~ 00 ~ 0 0 U ON.ONO. v ~~0 - ON 00cn \0 0C \0 C0 N 0 o'o 0o 000 v Nl 00 en 00 Nl 11 r4 Nl cl cl - ~ 00 ~ Cl a\ q \ n CD' D W u 0 W. N n A
17 CC In '-) N' - \,o - In \0 00 N- ric C r4 11) 0 N- P, 0 r 't- a N m, C r III I I 0 w C) N ON \Ln w w- ~- a~ e-j ('4 e'4 ('4 00 ~ ~ *') 0 ~ - '*- el 0 wn wn 0N N-, a - ON 00? N- (3) ON 00 e o o 0 ON '- v ~0 - C> rn 00 " 00 CD - C C C C V Co ") ~ N0N 0 en V- tno a\e~n V),-N r V 1 v e N rl00 eon a\o 0 en ON mn NN mn mo\00 I00 en N- In mn In en- en r4 en tn "- - - a\ en V r4 In -N N a\ 00 m 0D a\ e-en - " fen vn ern a\ ON\ Nl a, - N 0, C4 In en. en 000 N- e n en - cn m NOeN NN N-V*r 0~ ) 0 z o o A < x o o z U~ u~ 0)~ 0 ~ ~ (0 W. 4i_
18 Cl 04 C N* 0000) tv - 0 \/ v 00 0 Co 0 Co o- r - 0 I--I r - u E 00 C)C 1l 'l -1) a 1,- \ 'u 0 C-00 ON M ' r(i-\ D n Cr\ c-i r4 ~ r4 fn rj 0 CD D COC 0(C OCIOC * r, \ 0 0 C os 0 ~g 0 0..~ OQ u 0 Co ~ -2 & 00 0 Co - U.0 ~ ~.~ -~ U ~ z *~ C-I (-~ U~C \0 V- allo 0. 0 E Co a0~0 w 0 \0 0 UN c~n - ~ el UN ann 1)I ~ ) - -n 1Cm \JD N C14 rn a\ 00 fc0na C14 - -q t CLo 0 U c 0u U Co
19 PREDICTORS OF DISCORDANT OUTCOMES / S65 payment despite the apparent absence of medical error is a claim against a hospital and one or more physicians concerning injury to an infant that is settled out of court. When all of these features are present in a claim, our model predicts a 62 percent probability of payment in the absence of merit. In contrast, a nonmeritorious claim that involves a middle-aged plaintiff, no hospital codefendant, and a trial verdict (but in all other respects is the same as the above example) has only a 10 percent probability of payment. Resolution by trial verdict was the single strongest predictor of nonpayment of a meritorious claim. We discuss implications of these findings below Trial Outcomes and Trial Selection Effects Resolution by jury verdict was a highly significant predictor of both types of discordance we examined. The odds of error claims not receiving payment were four times higher when the claim was resolved by verdict rather than by settlement. It is also true that verdicts were less prone to paying nonerror claims, but a wider view-one that looks at the adjudication of both nonerror and error claims-suggests this is less a product of precision than of a pervasive tendency to deny compensation to all claims, regardless of merit. The lower plaintiff win rate observed among error claims decided by verdict was particularly interesting because it challenges popular conceptions of juries as excessively lenient toward plaintiffs. 3 This difference not only was present in the overall sample (24 versus 63 percent) but also was robust across every subsample analysis we performed. Stratifying by each of our main descriptive variables-plaintiff age, injury severity, clinical category, and reviewer confidence-and comparing payment probability between verdicts and settlements, we found that the probability of payment was uniformly lower in the group decided by verdict. With few exceptions, the magnitude of the difference fell in the range of percentage points. There has long been evidence that plaintiffs lose most medical malpractice trials-approximately percent, according to the best available national data (Danzon and Lillard 1983; Vidmar 1995; Cohen 2004; Physician Insurers Association of America 2000; U.S. House 2005; Stevenson and Studdert 2003). But conventional wisdom in law and economics scholarship posits that important systematic differences exist 3. Our study investigated this challenge as it pertains to jury findings of liability, not to award levels conditional on a finding of liability.
20 m--. - I- C C)q. fl 0\ 40 ON nc 0) 0 w) u 0) 0) ca. ot >. 10 U C
Medical Malpractice Litigation in Pennsylvania Report commissioned and funded by the Pennsylvania Bar Association May 2006 Medical Malpractice Litigation in Pennsylvania A Report for the Pennsylvania Bar
Expertise in Medical Malpractice Litigation: Special Courts, Screening Panels, and Other Options Catherine T. Struve Copyright 2003 Catherine T. Struve This report may be redistributed electronically as
Medical Malpractice Law in the United States Prepared for the Kaiser Family Foundation by: Peter P. Budetti, M.D., J.D. Edward E. and Helen T. Bartlett Foundation Professor of Public Health Chair, Department
Medical Malpractice Litigation and Tort Reform: It s the Incentives, Stupid David A. Hyman * and Charles Silver ** I. INTRODUCTION...1086 II. HOW OFTEN DO PATIENTS SUE?...1088 III. DO THE MERITS MATTER?...1092
THE SYNTHESIS PROJECT NEW INSIGHTS FROM RESEARCH RESULTS RESEARCH SYNTHESIS REPORT NO. 10 MAY 2006 Michelle M. Mello, J.D., Ph.D., M.Phil. Harvard School of Public Health Medical malpractice: Impact of
National Center for Policy Analysis POLICY BACKGROUNDER No. 163 For Immediate Release For people with limited time December 18, 2007 and a need to know. Medical Malpractice Reform Most doctors are sued
Learning from litigation: an analysis of claims for clinical negligence Charles Vincent Caroline Davy Aneez Esmail Graham Neale Max Elstein Jenny Firth Cozens Kieran Walshe School of Primary Care, University
Journal of Empirical Legal Studies Volume 5, Issue 3, 551 591, September 2008 Let s Not Make a Deal: An Empirical Study of Decision Making in Unsuccessful Settlement Negotiations Randall L. Kiser, Martin
THE SYNTHESIS PROJECT NEW INSIGHTS FROM RESEARCH RESULTS RESEARCH SYNTHESIS REPORT NO. 8 JANUARY 2006 Michelle M. Mello, J.D., Ph.D., M.Phil. Harvard School of Public Health Understanding medical malpractice
Does Medical Malpractice Deter? The Impact of Tort Reforms and Malpractice Standard Reforms on Healthcare Quality By MICHAEL FRAKES * Despite the fundamental role of deterrence in the theoretical justification
Evaluation of Options for Medical Malpractice Michelle M. Mello System Reform Harvard School of Public Health Allen Kachalia Harvard Medical School Brigham and Women s Hospital A study conducted by staff
THE VALUE OF LIABILITY IN MEDICAL MALPRACTICE by Michelle J. White Prologue: In the debate over reforming the U.S. health care system, there are relatively few areas of agreement among the various parties
Medical Malpractice Reform, the Supply of Physicians, and Adverse Selection Ethan M.J. Lieber Revised October, 2013 Abstract Malpractice reforms tend to reduce physician liability for harming patients.
HEALTH COURTS? PHILIP G. PETERS, JR.* INTRODUCTION... 228 I. THE 21ST CENTURY HEALTH COURT PROPOSAL... 230 II. RISKS AND BENEFITS OF THE HEALTH COURTS PROPOSAL... 236 A. The Prospects for Producing Fairer
Order Code RL33358 CRS Report for Congress Received through the CRS Web Medical Malpractice: An Overview Updated May 5, 2006 Bernadette Fernandez Analyst in Social Legislation Domestic Social Policy Division
Does Sorry Work? The Impact of Apology Laws on Medical Malpractice Benjamin Ho Cornell University *** JOB MARKET PAPER *** Elaine Liu University of Houston October 2010 ABSTRACT Apologies made by physicians
1 Medical Malpractice Systems around the Globe: Examples from the US- tort liability system and the Sweden- no fault system Health, Nutrition and Population (HNP) Human Development Sector Unit Europe and
July 2011 Issues in International Health Policy Administrative Compensation for Medical Injuries: Lessons from Three Foreign Systems Michelle M. Mello, Allen Kachalia, and David M. Studdert The mission
March, 2011 Committee of Interns and Residents: Medical Malpractice Insurance and Liability Bibliography 2010 Barry, David, Jr. Missing the mark: Caps hamstring victims, fail to slow rising costs of care,
Oregon Health Policy Board Office for Oregon Health Policy and Research Oregon Medical Liability Task Force Report and Recommendations Submitted to the Oregon Health Policy Board: December 2010 Table of
An Empirical Assessment of Early Offer Reform for Medical Malpractice Joni Hersch, Jeffrey O Connell, and W. Kip Viscusi ABSTRACT The early offer reform proposal for medical malpractice provides an option
Working Paper The Effects of the U.S. Malpractice System: A Review of the Empirical Literature Daniel P. Kessler* Stanford University, Hoover Institution, and the National Bureau of Economic Research *
Defensive Medicine and Medical Malpractice July 1994 OTA-H-602 NTIS order #PB94-193257 GPO stock #052-003-01377-1 Recommended Citation: U.S. Congress, Office of Technology Assessment, Defensive Medicine
Contingency Fees, Settlement Delay and Low-Quality Litigation: Empirical Evidence from Two Datasets Eric Helland * and Alexander Tabarrok December, 2002 Abstract Although flat fees are common for divorces,
Information and the disposition of medical malpractice claims: A competing risks analysis Paul Fenn University of Nottingham Neil Rickman University of Surrey Erasmus University and CEPR December 21, 2011
Scoping project on no win no fee agreements in England and Wales Richard Moorhead, Paul Fenn and Neil Rickman Ministry of Justice Research Series 17/09 December 2009 Scoping project on no win no fee agreements
Analysis of surgical errors in closed malpractice claims at 4 liability insurers Selwyn O. Rogers, Jr, MD, MPH, a,b Atul A. Gawande, MD, MPH, a,b Mary Kwaan, MD, a Ann Louise Puopolo, BSN, RN, c Catherine
The Effects of Malpractice Tort Reform on Defensive Medicine Katherine Hennesy, Ursinus College As the rising cost of malpractice threatens to reduce the number of hospitals and physicians in various states