By Ted Rosen, MD
Recent data from TransRe, an international reinsurance company, show that massive multimillion-dollar malpractice verdicts are on the rise and that even average malpractice verdicts are increasing in amount.
In fact, the average of 2023 malpractice verdicts far exceeded any other prior year. While New York, Florida, and Illinois were once the leaders in high malpractice awards, such verdicts are now being seen in such unlikely places as Utah and Georgia.
What explains the current frequency of high malpractice awards? Rollbacks of tort reforms across the country have contributed as has general inflation. The occurrence of even a few mega verdicts in any locale can increase the likelihood of larger awards in different jurisdictions. Another theory is that the general population emerged from the depths of the pandemic angrier, especially at the healthcare system and medical professionals. Finally, the rise of third-party litigation financing contributes to more frequent and larger malpractice verdicts. This is an emerging practice where companies unrelated to the lawsuit provide capital to the plaintiff in return for a part of any monetary award. As a consequence of increased verdicts, medical malpractice insurance rates have steadily risen since 2019.
The only good news? A majority of malpractice cases are actually dropped or settled before trial, according to American Medical Association research.
Ted Rosen, MD, is a Professor of Dermatology at Baylor College of Medicine in Houston and the Medical Editor of the Dermatology Digest.
