3. "Despite the push for tort reform, the facts don't warrant what Public Citizen, a nonpartisan research group, calls the "politically charged hysteria surrounding medical malpractice litigation.''
The number of U.S. malpractice payments in 2008 was the lowest since creation of the federal National Practitioner Data Bank, which has tracked payments since 1990. And the average payment — about $326,000 — was the smallest in a decade.
While malpractice litigation accounts for only about 0.6 percent of U.S. health care costs, the fear of being sued causes U.S. doctors to order more tests than their Canadian counterparts. So-called defensive medicine increases health care costs by up to 9 percent, Medicare's administrator told Congress in 2005. "
Canada keeps malpractice cost in check - St. Petersburg Times
Now, compare those with these:
"Also, it’s worth noting that while these figures sound like a lot of money — and few would dispute the fact that health insurance company CEOs make healthy salaries — these numbers represent a very small fraction of total health care spending in the U.S. In 2007, national health care expenditures totaled $2.2 trillion. Health insurance profits of nearly $13 billion make up 0.6 percent of that. CEO compensation is a mere 0.005 percent of total spending."
FactCheck.org: Pushing for a Public Plan
So my conclusion is that the cost of malpractice suits is equal to the profit of the entire industry.
This may be significant of and by itself, but when we look at the costs of defensive medicine, it alone adds to the costs of healthcare by a factor 15!!!
But, as you know, tort reform is a political question as the trial lawyers are a major contributor to the Democratic party.
BTW, I heard on the news that the healthcare bill will increase lawsuits as it now allows employees to sue their employers if the employer provides healthcare.
The Congressional Budget Office - in an analysis that projects a nearly10-fold increase in savings over its findings last year - said tort reform would cut costs by limiting the use of diagnostic tests and other services health care providers and doctors use to reduce exposure to lawsuits.
Report: Reining in lawsuits would cut deficit - Washington Times