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Malpractice litigation and medical costs in the United States

Author

Listed:
  • Brandon Roberts

    (Premier Insights, Inc., Canton, MS, USA)

  • Irving Hoch

    (School of Economic, Political, and Policy Sciences, University of Texas at Dallas, Richardson, TX, USA)

Abstract

This paper examines the relationship of medical malpractice litigation and medical costs in the United States. We relate medical malpractice settlements to medical costs for 190 metro and non-metro areas in the United States over a 5-year period and find that litigation is positively and significantly related to medical costs. Using a panel data set and a fixed-effects specification, the estimates indicate that malpractice litigation accounts for roughly 2-10% of medical expenditures, with the impact exceeding the dollar amount of settlements. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:hlthec:v:18:y:2009:i:12:p:1394-1419
    DOI: 10.1002/hec.1436
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    File URL: http://hdl.handle.net/10.1002/hec.1436
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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. Louise Sheiner & David M. Cutler, 1999. "The Geography of Medicare," American Economic Review, American Economic Association, vol. 89(2), pages 228-233, May.
    3. repec:aph:ajpbhl:10.2105/ajph.2005.077883_3 is not listed on IDEAS
    4. Brandon Roberts, 2006. "Area Poverty Effects on Local Health Care Costs: An Analysis of Mississippi," Review of Policy Research, Policy Studies Organization, vol. 23(1), pages 223-233, January.
    5. Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 353-390.
    6. Skinner, Jonathan & Fisher, Elliott, 1997. "Regional Disparities in Medicare Expenditures: An Opportunity for Reform," National Tax Journal, National Tax Association, vol. 50(3), pages 413-425, September.
    7. 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.
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