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The impact of state laws limiting malpractice damage awards on health care expenditures

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  • Hellinger, F.J.
  • Encinosa, W.E.

Abstract

Twenty-eight states have laws that limit payments in malpractice cases, and several studies indicate that these laws reduce the frequency and severity of malpractice claims and lower premiums. Moreover, proponents believe that such laws reduce health care expenditures by reducing the practice of defensive medicine. However, there is a dearth of empirical evidence about the impact of these laws on the cost of health care. We used multivariate models and relatively recent data to estimate the impact of state tort reform laws that directly limit malpractice damage payments on health care expenditures. Estimates from these models suggest that laws limiting malpractice payments lower state health care expenditures by between 3% and 4%.

Suggested Citation

  • Hellinger, F.J. & Encinosa, W.E., 2006. "The impact of state laws limiting malpractice damage awards on health care expenditures," American Journal of Public Health, American Public Health Association, vol. 96(8), pages 1375-1381.
    • Handle: RePEc:aph:ajpbhl:10.2105/ajph.2005.077883_3
    DOI: 10.2105/AJPH.2005.077883
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    Cited by:

    1. Edward Nketiah-Amponsah, 2019. "The Impact of Health Expenditures on Health Outcomes in Sub-Saharan Africa," Journal of Developing Societies, , vol. 35(1), pages 134-152, March.
    2. Myungho Paik & Bernard S. Black & David A. Hyman & Charles Silver, 2012. "Will Tort Reform Bend the Cost Curve? Evidence from Texas," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 9(2), pages 173-216, June.
    3. Charles L. Baum, 2020. "The effects of medical malpractice tort reform on physician supply an analysis of legislative changes from 2009 to 2016," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 540-575, October.
    4. Brandon Roberts & Irving Hoch, 2009. "Malpractice litigation and medical costs in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(12), pages 1394-1419, December.
    5. Na-Eun Cho & Yue Maggie Zhou, 2021. "Profits, Reputation, and the Risk of Medical Malpractice Liability," Strategy Science, INFORMS, vol. 6(3), pages 228-243, September.
    6. Stadhouders, Niek & Kruse, Florien & Tanke, Marit & Koolman, Xander & Jeurissen, Patrick, 2019. "Effective healthcare cost-containment policies: A systematic review," Health Policy, Elsevier, vol. 123(1), pages 71-79.
    7. Vandersteegen, Tom & Marneffe, Wim & Cleemput, Irina & Vereeck, Lode, 2015. "The impact of no-fault compensation on health care expenditures: An empirical study of OECD countries," Health Policy, Elsevier, vol. 119(3), pages 367-374.

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