Studies highlight continued cost burden of medical liability system

The average cost of administering or adjudicating a medical liability claim was $54,165 in 2015, 65% more than in 2006, according to a series of trend reports released today by the American Medical Association. More than two-thirds of claims were dropped, dismissed or withdrawn, but still cost an average $30,475 to defend, AMA found. Only 7% of claims were decided by a trial verdict, and the vast majority were won by the defendants. Despite increasing stability in liability premiums, more premiums have increased than decreased since 2015, the association found. “Information in this new research paints a bleak picture of physicians’ experiences with medical liability claims and the associated cost burdens on the health system,” said AMA President David Barbe, M.D. “The reports validate the fact that preserving quality and access in medicine, while reducing cost, requires fairness in the civil justice system. Every dollar spent on the broken medical liability system is a dollar that cannot be used to improve patient care.”