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Malpractice litigation and medical costs in Mississippi

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  • Brandon Roberts
  • Irving Hoch

Abstract

This paper examines the impact of varying levels of malpractice litigation on area medical costs. Using a fixed‐effects model and Medicare Part B as the dependent variable, the results indicate that per enrollee medical expenditures are positively related to the incidence of medical malpractice lawsuits. The higher cost is presumed to be attributable to ‘defensive practices’ by area physicians based on varying degrees of perceived risk. The results suggest the addition to cost is substantial, possibly adding up to 25% in some jurisdictions with the impact exceeding annual dollar amounts of malpractice judgments and settlements. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Brandon Roberts & Irving Hoch, 2007. "Malpractice litigation and medical costs in Mississippi," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 841-859, August.
    • Handle: RePEc:wly:hlthec:v:16:y:2007:i:8:p:841-859
    DOI: 10.1002/hec.1195
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    References listed on IDEAS

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    1. Daniel P. Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," NBER Working Papers 5466, National Bureau of Economic Research, Inc.
    2. Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 353-390.
    3. Skinner, Jonathan & Fisher, Elliott, 1997. "Regional Disparities in Medicare Expenditures: An Opportunity for Reform," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(3), pages 413-425, September.
    4. Skinner, Jonathan & Fisher, Elliott, 1997. "Regional Disparities in Medicare Expenditures: An Opportunity for Reform," National Tax Journal, National Tax Association, vol. 50(3), pages 413-25, September.
    5. Louise Sheiner & David M. Cutler, 1999. "The Geography of Medicare," American Economic Review, American Economic Association, vol. 89(2), pages 228-233, May.
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    Cited by:

    1. Lotte Daniels & Wim Marneffe, 2023. "Does patient behaviour drive physicians to practice defensive medicine? Evidence from a video experiment," Health Economics Review, Springer, vol. 13(1), pages 1-13, December.
    2. 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.

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