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Does Higher Malpractice Pressure Deter Medical Errors?

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  • Toshiaki Iizuka

Abstract

An important objective of medical liability law is to deter medical errors by punishing negligent mistakes. However, relatively little evidence exists on the deterrence effect. Using newly constructed measures of preventable medical complications and state tort reforms in the United States between 1994 and 2007, I find evidence that higher liability pressure deters preventable medical complications associated with four specific obstetric and gynecologic procedures. The results also show that the effects of tort reforms vary according to the specific reform in question. While joint and several liability reform (which increases doctor accountability) appears to decrease preventable medical complications, collateral source rule reform and caps on punitive damages appear to increase these complications. Opponents of tort reform often argue that tort reforms may adversely affect patient safety, and the results of this paper suggest that such a concern is legitimate.

Suggested Citation

  • Toshiaki Iizuka, 2013. "Does Higher Malpractice Pressure Deter Medical Errors?," Journal of Law and Economics, University of Chicago Press, vol. 56(1), pages 161-188.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/666977
    DOI: 10.1086/666977
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    Cited by:

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    2. Chopard, Bertrand & Musy, Olivier, 2023. "Market for artificial intelligence in health care and compensation for medical errors," International Review of Law and Economics, Elsevier, vol. 75(C).
    3. Brian K. Chen & Chun‐Yuh Yang, 2014. "Increased Perception of Malpractice Liability and the Practice of Defensive Medicine," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 11(3), pages 446-476, September.
    4. Pinka Chatterji & Siyang Li & Gerald R. Marschke, 2018. "Malpractice Reform and the Sorting of New Physicians by Medical Human Capital," NBER Working Papers 24401, National Bureau of Economic Research, Inc.
    5. Morita, Hatsuru, 2018. "Criminal prosecution and physician supply," International Review of Law and Economics, Elsevier, vol. 55(C), pages 1-11.
    6. Sofia Amaral-Garcia & Paola Bertoli & Veronica Grembi, 2015. "Does Experience Rating Improve Obstetric Practices? Evidence From Geographical Discontinuities in Italy," CEIS Research Paper 342, Tor Vergata University, CEIS, revised 08 May 2015.
    7. Amaral-Garcia, S. & Bertoli, P. & Grembi, V., 2014. "Does Experience Rating Improve Obstetric Practices? Evidence From Geographical Discontinuities," Health, Econometrics and Data Group (HEDG) Working Papers 14/23, HEDG, c/o Department of Economics, University of York.
    8. Panthöfer, Sebastian, 2016. "Tort Reform and the Length of Physician Office Visits," UC3M Working papers. Economics 23861, Universidad Carlos III de Madrid. Departamento de Economía.
    9. Seth Freedman & Haizhen Lin & Jeffrey Prince, 2018. "Information Technology and Patient Health: Analyzing Outcomes, Populations, and Mechanisms," American Journal of Health Economics, MIT Press, vol. 4(1), pages 51-79, Winter.
    10. Antoci, Angelo & Fiori Maccioni, Alessandro & Russu, Paolo & Sacco, Pier Luigi, 2022. "Curing is caring? Liability reforms, defensive medicine and malpractice litigation in a post-pandemic world," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    11. Bertoli,P.; Grembi,V.;, 2017. "Exploring the nexus between certainty in injury compensation and treatment selection," Health, Econometrics and Data Group (HEDG) Working Papers 17/17, HEDG, c/o Department of Economics, University of York.
    12. Hsueh-Hsiang Li & Alexandra Bernasek, 2018. "Tort Reforms and the Gender Distribution of Physicians," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(3), pages 437-454, June.
    13. Avdic, Daniel & Lundborg, Petter & Vikström, Johan, 2018. "Mergers and Birth Outcomes: Evidence from Maternity Ward Closures," IZA Discussion Papers 11772, Institute of Labor Economics (IZA).
    14. Zabinski, Zenon & Black, Bernard S., 2022. "The deterrent effect of tort law: Evidence from medical malpractice reform," Journal of Health Economics, Elsevier, vol. 84(C).
    15. Bertoli, Paola & Grembi, Veronica, 2019. "Malpractice risk and medical treatment selection," Journal of Public Economics, Elsevier, vol. 174(C), pages 22-35.
    16. Malak, Natalie & Yang, Y. Tony, 2019. "A re-examination of the effects of tort reforms on obstetrical procedures and health outcomes," Economics Letters, Elsevier, vol. 184(C).
    17. Seth Freedman & Haizhen Lin & Jeffrey T. Prince, 2014. "Information Technology and Patient Health: An Expanded Analysis of Outcomes, Populations, and Mechanisms," Working Papers 2014-02, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    18. Michael Frakes & Jonathan Gruber, 2020. "Defensive Medicine and Obstetric Practices: Evidence from the Military Health System," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 17(1), pages 4-37, March.
    19. Bernard S. Black & Amy R. Wagner & Zenon Zabinski, 2017. "The Association between Patient Safety Indicators and Medical Malpractice Risk: Evidence from Florida and Texas," American Journal of Health Economics, MIT Press, vol. 3(2), pages 109-139, Spring.
    20. Frakes, Michael & Jena, Anupam B., 2016. "Does medical malpractice law improve health care quality?," Journal of Public Economics, Elsevier, vol. 143(C), pages 142-158.
    21. Ethan M. J. Lieber, 2014. "Medical Malpractice Reform, the Supply of Physicians, and Adverse Selection," Journal of Law and Economics, University of Chicago Press, vol. 57(2), pages 501-527.

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