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Tort liability and obstetricians' care levels

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  • Sloan, Frank A.
  • Entman, Stephen S.
  • Reilly, Bridget A.
  • Glass, Cheryl A.
  • Hickson, Gerald B.
  • Zhang, Harold H.

Abstract

In this study, we assess practice changes made in response to the threat of tort liability in the field of obstetrics, which has one of the highest levels of premiums, claim frequency, and mean dollar value of paid claims. There is much "conventional wisdom" about effects of tort liability risk on obstetrical practice based on obstetricians' perceptions of changes that have occurred. Our data comes from the Survey of Obstetrical Care in 1992, a survey of 963 women who had given birth in 1987 in 31 counties in Florida conducted for purposes of this study and related studies of medical malpractice and birth outcomes. Our results suggest that some antenatal testing is responsive to variation in the threat of being used. But for most measures included in our study, half of the antenatal testing variables, the decision to perform a cesarean section, and various dimensions of maternal satisfaction with care, our empirical analysis failed to reveal that obstetricians practice more "defensively" in areas with relatively high suit rates.
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Suggested Citation

  • Sloan, Frank A. & Entman, Stephen S. & Reilly, Bridget A. & Glass, Cheryl A. & Hickson, Gerald B. & Zhang, Harold H., 1997. "Tort liability and obstetricians' care levels," International Review of Law and Economics, Elsevier, vol. 17(2), pages 245-260, June.
    • Handle: RePEc:eee:irlaec:v:17:y:1997:i:2:p:245-260
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    References listed on IDEAS

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    1. Craswell, Richard & Calfee, John E, 1986. "Deterrence and Uncertain Legal Standards," Journal of Law, Economics, and Organization, Oxford University Press, vol. 2(2), pages 279-303, Fall.
    2. Peter A. Diamond, 1974. "Single Activity Accidents," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 107-164, January.
    3. Michael Spence, 1977. "Consumer Misperceptions, Product Failure and Producer Liability," Review of Economic Studies, Oxford University Press, vol. 44(3), pages 561-572.
    4. repec:aph:ajpbhl:1990:80:3:313-315_1 is not listed on IDEAS
    5. Kahan, Marcel, 1989. "Causation and Incentives to Take Care under the Negligence Rule," The Journal of Legal Studies, University of Chicago Press, vol. 18(2), pages 427-447, June.
    6. Danzon, Patricia M., 1985. "Liability and liability insurance for medical malpractice," Journal of Health Economics, Elsevier, vol. 4(4), pages 309-331, December.
    7. Sloan, Frank A. & Hassan, Mahmud, 1990. "Equity and accuracy in medical malpractice insurance pricing," Journal of Health Economics, Elsevier, vol. 9(3), pages 289-319, November.
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    Cited by:

    1. Dubay, Lisa & Kaestner, Robert & Waidmann, Timothy, 2001. "Medical malpractice liability and its effect on prenatal care utilization and infant health," Journal of Health Economics, Elsevier, vol. 20(4), pages 591-611, July.
    2. Janet Currie & W. Bentley MacLeod, 2008. "First Do No Harm? Tort Reform and Birth Outcomes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 795-830.
    3. Paola Bertoli & Veronica Grembi, 2017. "Medical Malpractice: How Legal Liability Affects Medical Decisions," CERGE-EI Working Papers wp600, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Sloan, Frank A. & Shadle, John H., 2009. "Is there empirical evidence for "Defensive Medicine"? A reassessment," Journal of Health Economics, Elsevier, vol. 28(2), pages 481-491, March.
    5. Paul Fenn & Alastair Gray & Neil Rickman, 2004. "Liability, insurance and defensive medicine: new evidence," School of Economics Discussion Papers 0304, School of Economics, University of Surrey.
    6. Dubay, Lisa & Kaestner, Robert & Waidmann, Timothy, 1999. "The impact of malpractice fears on cesarean section rates," Journal of Health Economics, Elsevier, vol. 18(4), pages 491-522, August.
    7. Chetty, V. K., 1998. "Stochastic technology, production organization and costs," Journal of Health Economics, Elsevier, vol. 17(2), pages 187-210, April.
    8. Fenn, Paul & Gray, Alastair & Rickman, Neil, 2007. "Liability, insurance and medical practice," Journal of Health Economics, Elsevier, vol. 26(5), pages 1057-1070, September.

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