Tort Reform and the Healthcare Crisis
To start things off, let me give you a quote from Ronald Reagan’s speech from his first Inauguration:
In this present crisis, government is not the solution to our problem; government is the problem. From time to time we’ve been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden.
While it was not healthcare he was addressing (though I can dig up any number of quotes from the early 60s from Reagan against government healthcare), the quote still very much applies. But how, I can hear you asking, does this apply to the title of this post?
The answer to that is very simple. The “elite group” (Congress in this case) is beholden to another group that is one of the key factors that has driven up healthcare costs in this county. That group? Trial Lawyers.
Growing up with a parent in the healthcare industry (my mother is a CCRN), I’ve heard no end of stories about the cost of medical malpractice insurance. One of the major causes for the expense is due to malpractice lawsuits.
Now, before anyone starts trying to put words into my mouth, let me say this: there are many cases where a lawsuit and large judgment are appropriate. Doctors make mistakes, which impacts someone else’s life in a major way. However, in far more cases, the lawsuits are brought against healthcare professionals purely because the lawyers know many of the insurance companies will settle rather than go to trial.
Unfortunately for the American public, far too many members of Congress are beholden to the American Trial Lawyers’ Association. Due to this, any meaningful Tort reform gets tossed to the wayside. After all, they don’t want to endanger their campaign contributions from wealthy lawyers.
What needs to be done in my opinion? Institute a loser-pays civil lawsuit policy. Make it law that if you sue someone and lose the lawsuit, you have to pay their legal costs. This ensures that someone will think hard about whether or not their case warrants bringing suit before doing so. Instead of someone having to decide if it will cost them more to defend against a lawsuit than to settle in every case, they can look at the merit of the claims instead.
Yes, I fully acknowledge this brings up the issue of corporations being able to hire more competent legal teams than John Q. Public who had a doctor amputate the wrong foot. However, a competent lawyer is far more likely to take the case than the neighborhood ambulance chaser when they know there is a solid case rather than just filing in hope of the company settling.
Of course, I have zero hope that we’ll see any meaningful reform in this area. After all, this might endanger the move toward socialized medicine and shifting yet more power from the People to the Government. And I really wish I could say I’m just a cynic in this case.
Numbers please.
I’ve seen a lot of talk about this subject – but all of it antecedent on your side. The only numbers I’ve seen are that malpractice insurance and malpractice lawsuits are less than 1% of the current cost of healthcare.
Of course now that I’ve repeated the talking point from the other side I can’t find anything to back that up either. The CBO however does have a whole lot to say on this topic:
http://www.cbo.gov/ftpdocs/71xx/doc7174/04-28-MedicalMalpractice.pdf
@Delwin
The primary numbers are from the oft cited Kessler-McClellan study put out in 1996. I do, however, acknowledge the CBO and GAO both question the extrapolation of the studied data to the overall healthcare industry. However, I also maintain it would be difficult to come up with a definitive number given all of the variables involved. I would still argue that Tort reform is needed and would have a positive impact on the cost of healthcare for the consumer.
@stranger
I agree that tort reform in general would be a good idea but I think more targeted reforms of specifically health care will get more mileage as well as bang for your legislative buck.
I think if you look at why hospitals pay hundreds if not thousands of times more than Walgreen for band aids you may find more money than malpractice reform.