An Empirical Assessment of Early Offer Reform for Medical Malpractice

Hersch, Joni; O'Connell, Jeffrey; Viscusi, W. Kip

doi:10.1086/519464

Cited by 18 publications

(14 citation statements)

References 13 publications

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“…Insurers also estimated that non-economic damages represented 58-percent of total payouts, compared to our estimate of 41-percent in jury cases. These differences suggest that one should not rely too heavily on insurers' damages allocations in settled cases, as Joni Hersch, Jeffrey O'Connell, and W. Kip Viscusi (2007) did to model the impact of an early offer program for medical malpractice cases.…”

Section: Cases Settled Without a Full Trialmentioning

confidence: 99%

Estimating the Effect of Damages Caps in Medical Malpractice Cases: Evidence from Texas

Hyman¹,

Black²,

Silver³

et al. 2009

Journal of Legal Analysis

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Using claim-level data, we estimate the effect of Texas's 2003 cap on noneconomic damages on jury verdicts, post-verdict payouts, and settlements in medical malpractice cases closed during 1988-2004. For pro-plaintiff jury verdicts, the cap affects 47-percent of verdicts and reduces mean allowed non-economic damages, mean allowed verdict, and mean total payout by 73-percent, 38-percent, and 27-percent, respectively. In total, the non-econ cap reduces adjusted verdicts by $156M, but predicted payouts by only $60M. The impact on payouts is smaller because a substantial portion of the above-cap damage awards were not being paid to begin with. In cases settled without trial, the non-econ cap affects 18-percent of cases and reduces predicted mean total payout by 18-percent. The non-econ cap Downloaded from 356 ~ Hyman, Black, Silver, Sage: Estimating the Effect of Damages Caps in Medical Malpractice Cases has a smaller impact on settled cases than tried cases because settled cases tend to involve smaller payouts. The impact of the non-econ cap varies across plaintiff categories. Deceased, unemployed, and (likely) elderly plaintiffs suffer a larger percentage reduction in payouts than living, employed, and non-elderly plaintiffs.We also simulate the effects of different caps and fi nd substantial differences in cap stringency across states. Different caps reduce aggregate payouts in tried cases (all cases) by between 16-percent and 65-percent (7-percent and 42-percent). Caps on total damages have especially large effects.

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Section: Cases Settled Without a Full Trialmentioning

confidence: 99%

Estimating the Effect of Damages Caps in Medical Malpractice Cases: Evidence from Texas

Hyman¹,

Black²,

Silver³

et al. 2009

Journal of Legal Analysis

View full text Add to dashboard Cite

show abstract

“…The magnigures of the effects are likely to be especially great because noneconomic damages constitute the largest component of compensation in medical malpractice cases. Based on closed claims data from Florida and Texas, the noneconomic damages share of medical malpractice payments for claims involving adults age 18 and over is 0.84 for nonfatal cases and 0.75 for fatal cases (Hersch, O'Connell, and Viscusi, 2007). Given the prominence of noneconomic damages and reforms that cap these damages, this tort reform measure will be the main matter of interest.…”

Section: Methodsmentioning

confidence: 99%

The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses

Born¹,

Viscusi

Baker

2009

J of Risk & Insurance

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Whereas the literature evaluating the effect of tort reforms has focused on reported incurred losses, this paper examines the long run effects using a comprehensive sample by state of individual firms writing medical malpractice insurance from 1984-2003. The long run effects of reforms are greater than insurers' expected effects, as five year developed losses and ten year developed losses are below the initially reported incurred losses for those years following reform measures. The quantile regressions show the greatest effects of joint and several liability limits, noneconomic damages caps, and punitive damages reforms for the firms that are at the high end of the loss distribution. These quantile regression results show stronger, more concentrated effects of the reforms than do the OLS and fixed effects estimates for the entire sample.

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“…Finally, despite the existence of a substantial literature on medical malpractice litigation, no study has yet explored the effect of nonrecourse loans on this type of personal injury action. Empirical papers on medical malpractice claims cover topics such as tort reforms (Danzon 1984(Danzon , 1986Sloan et al 1989;Born & Viscusi 1998;Yoon 2001;Viscusi & Born 2005;Avraham 2007;Born et al 2009), apology laws (Ho & Liu 2011a, 2011b, fee shifting (Snyder & Hughes 1990;Hughes & Snyder 1995), characteristics of payments (Sloan & Hsieh 1990;Hyman et al 2007Hyman et al , 2011, and early offer reform (Hersch et al 2007;Black et al 2009). This work expands the literature by considering the effect of third-party funding on medical malpractice litigation outcomes.…”

Section: Related Literaturementioning

confidence: 99%

Consumer Litigation Funding and Medical Malpractice Litigation: Examining the Effect of Rancman v. Interim Settlement Funding Corporation

Xiao

2017

J Empirical Legal Studies

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Consumer litigation funding, a growing industry in the United States, is an alternative credit source for cash‐strapped tort plaintiffs. Financiers give plaintiffs nonrecourse loans that are premised on lawsuit outcomes. This article is the first to empirically examine the effect of consumer litigation funding. Specifically, I explore the impact of nonrecourse loans on medical malpractice litigation outcomes by exploiting the variation in timing and geography from two Ohio policy changes: the Ohio Supreme Court's 2003 ban of funding in Rancman v. Interim Settlement Funding Corporation and the state's subsequent legislative legalization of funding in 2008. Using closed‐claim data from the National Practitioner Data Bank, I find evidence that the availability of funding increases claim payment and claim duration.

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An Empirical Assessment of Early Offer Reform for Medical Malpractice

Cited by 18 publications

References 13 publications

Estimating the Effect of Damages Caps in Medical Malpractice Cases: Evidence from Texas

Estimating the Effect of Damages Caps in Medical Malpractice Cases: Evidence from Texas

The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses

Consumer Litigation Funding and Medical Malpractice Litigation: Examining the Effect of Rancman v. Interim Settlement Funding Corporation

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