"You can't find a more ineffective
system for compensating injured patients than what we have in the
United States."
Richard L. Jackson, Chairman,
Patients for Fair Compensation
Total Premiums Reach $31 Billion Nationwide
(ATLANTA - April 10, 2012) - Physicians, hospitals, dentists,
therapists and a host of other healthcare providers paid a total of
about $31 billion in medical malpractice premiums in 2011-a new
record, according to a study released Tuesday by Patients for Fair
Compensation.
The data, compiled by Bioscience Valuation of Germany, showed
that all healthcare providers spent that amount last year to
protect themselves from lawsuits. Economists claim that malpractice
premiums are built into the escalating costs of healthcare for
consumers.
In addition, the study found that 19,000 patients received
compensation from medical malpractice occurrences in 2011. Of the
$31 billion in premiums, about 20 percent or $6 billion went to
patients. The remaining $25 billion went to attorneys' fees and
other legal costs, administrative costs and insurance company
profits.
"You can't find a more ineffective system for compensating
injured patients than what we have in the United States," said
Richard L. Jackson, chairman of Patients for Fair Compensation. "We
take in far too much money and get so few dollars to medically
injured persons. The system is just not working for patients."
A fact sheet outlining the new data and a detailed description
of the methodology used by Bioscience Valuation can be viewed here:
http://patientsforfaircompensation.org/medical-malpractice-cost/
Patients for Fair Compensation estimates that more than $650
billion is wasted each year on unnecessary medical procedures
ranging from x-rays, biopsies, CT scan, MRIs and other tests that
doctors order to keep from being sued. This is what is known as
"defensive medicine."
Patients for Fair Compensation formed in late 2011 to educate
policymakers about defensive medicine and the high costs related to
unnecessary tests and procedures that doctors order to keep from
being sued.
Bioscience Valuation reviewed medical malpractice cost estimates
in the United States and estimate paid claim value and indemnity
payments. The company, based in Bavaria, Germany, specializes in
healthcare financial and economic modeling.
For more information about Patients for Fair Compensation and
the proposed Patients' Compensation System policy solution go to
www.patientsforfaircompensation.org
Methodology:
Total malpractice costs were taken from Towers Perrin's 2009
Update on U.S. Tort Cost Trends. Trends in paid claim volume
and total indemnity payments were estimated based on Physician
Insurers Association of America's Claim Trend Analysis 2011
Edition.
For More Information Contact: Susan L.
Meyers, (404) 518-2271 or slmeyers (at) comcast (dot) net