Malpractice lawsuits exist to protect patients from negligent physicians. However, many of the suits brought about these days do little to protect, and in fact, do a great deal of harm to the medical practice industry.

The litigious tendencies of the late 20th century led to a surge in malpractice lawsuits in the United States, which in turn led to the creation of a new industry, the medical malpractice insurance carrier. The unfortunate bi-product of this industry creation is that if physician’s aren’t paying for malpractice insurance, they could end up paying dearly on a malpractice lawsuit settlement. Either way you look at it, the modern physician is paying someone because of the medical malpractice lawsuit.

The Numbers Don’t Lie

With the average malpractice settlement at around $250,000 in the US (though the number varies significantly depending on location, practice size, and specialty) its no wonder your average family physician pays upwards of $12,500 annually for coverage. There is a significant amount of variance in rates throughout the country, however, due to differences in state tort laws. For example in Texas physicians typically carry coverage of $250,000 to $700,000, whereas in New York City the average is well over $1 million. Its also important to note that across the country only 4 percent of primary care physicians go without malpractice insurance, and most states do not even allow physicians to go without insurance.

Light at the end of the Tunnel?

Its not all bad news for malpractice premiums around the country. Increased competition has led to gradually falling rates nationwide, as well as many states reforming tort laws to protect their physicians. Rates are expected to continue to fall over the next 2 or 3 years. Still, compared to many other industries’ insurance premiums, medical malpractice makes quite a dent in the physician’s pocket.

With health insurance issues having moved to the front burner in the recent presidential election, people are beginning to become aware many facts regarding it. This in turn has led to more questions being asked than are being answered. For instance, why is the cost of health care rising twice as fast as inflation? Also, while health insurance costs have risen, why is it that people are generally more dissatisfied with the coverage that they are receiving?

Malpractice Insurance Costs

The medical profession has been undergoing may changes for some time now and many of these changes can and do effect the cost and availability of health care insurance. For instance, malpractice insurance has been on the rise for decades and lawmakers have been unable to institute any type of substantial malpractice reform.

Lawyers Lobbies

Doctors and patients both want malpractice insurance cost to drop but one group in particular has stood steadfast in the way of any changes and that is lawyers and their powerful lobbyists who view lucrative malpractice claims as sacred cash cows.

Doctors Pay Cuts

Then there is a growing shortage of doctors that is plaguing the U.S. health care system. Congress has recently cut Medicare payments to doctors who treat Medicare patients by 10%. So it seems that while Americans are asking more from doctors they are willing to pay less.

Lack of Voter Intellect

Issues such as gay marriage and whether to tech evolution or creationism in high schools seem to take precedent in congress to actual viable health care reform. American mainstream voters wave their flags and attend anti gay marriage rallies at their churches then complain when catastrophic medical expenses leave them living in a trailer, when all they have is their own stupidity to blame.

The purpose of medical malpractice insurance is to cover doctors and other healthcare professionals for any liability claims arising from their treatment of patients.

If a doctor or healthcare provider is found guilty of medical malpractice, the damages awarded often reach into the millions, and can be even larger if punitive damages are awarded. Malpractice insurance shields him or her from financial liability in the case of a malpractice verdict.

However, just as your auto insurance rates go up with each ticket you receive, being found guilty of medical malpractice can drive a doctor’s insurance rates up for many years. In addition, recent years have seen a steep rise in the cost of medical malpractice coverage. This has, in many cases, caused great hardship for those in the medical community, and some are pushing for limits on certain types of damages in order to defray costs.

Despite these concerns, many attorneys for malpractice victims disagree with such limits. Specifically, they blame high premiums on poor investment choices while large plaintiff rewards simply reflect an unacceptable level of patient care and medical practice.

This crisis has been particularly prevalent in Pennsylvania. Physicians and hospitals are citing a lack of availability and affordability for malpractice insurance, so much so that it is driving many practitioners right out of business.

High-risk specialty areas have been hit the hardest, as they face the greatest chance for malpractice claims, and therefore carry the highest rates. In general, malpractice payouts have been on the rise in recent years and the fallout for healthcare professionals has been severe.

Despite the difficulty some practitioners may be experiencing in regards to paying their malpractice insurance premiums, it’s a problem that is not likely to go away. Since it is really the only shield doctors have from the financial ruin that might result from a huge damage award, healthcare professionals must cover these rates to stay in business.

If people think of a professional having to follow a set of standard operating procedures for how they perform their work, then most often doctors come to mind. If a doctor, hospital or the nursing staff fails to follow the correct procedures, the lives of patients can be endangered. Medical malpractice is something that patients should not have to worry about, yet far too often they do when something goes wrong. It may be a simple mistake that makes the patient ill or it could mean the loss of a life.

Medical malpractice lawsuits are not about people looking to make a quick buck. Most personal injury medical claims are very serious. Whenever personal injury attorneys become involved, there has been a serious breach in how a doctor, hospital or nurse has cared for a patient. In some cases it may be as severe as someone losing their life.

If you have been treated by a doctor or surgeon and have been injured as a result of them deviating from accepted medical practices, then you may have a very valid injury claim. If someone you know has died due to the fault of a doctor or substandard care at a hospital, you definitely have a claim.

But it is not as simple as asking the hospital or doctor to hand over money. You have to retain the services of an experienced personal injury attorney. Personal injury attorneys are well versed in the laws of your particular state and know to what extent a medical professional can be held liable.

Even if you know personal injury law, you still need an attorney for the simple reason that the hospital or physician’s insurance is going to have a team of qualified attorneys who will be determined to prove that their client was simply following procedure. In the cases of gross negligence, most will automatically try to come to a settlement because they do not want the backlash of negative publicity. Your personal injury medical attorney can advise you on the amount of money that you should be willing to settle for and can finalize all of the paperwork.

Medical malpractice insurance is set up to protect hospitals, doctors and nursing staff from personal injury medical claims. If the physician has let his or her insurance expire, then the attorney for the injured party can go after the doctor’s assets. Having the monetary compensation may not make you feel better if you have been seriously injured but it can make the medical community take notice of the guilty party. This could cost the doctor his medical license if it is proven that he deliberately, or ignorantly, injured you.

Recently, we had a prospect who was a surgeon in the standard insurance market (Medical Malpractice insurance companies that offer the lowest prices and best coverages for MD’s with favorable risk profiles). He had been insured with them for several years and was in line for free tail (when he retires he pays nothing for lifetime prior acts coverage).

His Bookkeeper was always paying bills late to maximize cash flow, including his medical malpractice insurance. Expenses were exceeding revenue, and the bookkeeper kept ignoring the late notices/cancellation notices from the medical malpractice insurance company.

Eventually the insurer issued a final cancellation notice. While this was happening, the doctor had a minor criminal conviction, unrelated to quality of care, thus his license was put on probation.

We intervened with the insurer who checked the doctor’s license and probation, but decided not to reinstate him for that reason. It is easier for an insurer to not reinstate an MD who was canceled, than to cancel his insurance at renewal. Normally this doctor more than likely would have been renewed even with his licensing probation, since he had no claims and was a clean risk. He is now out of the standard market.

We scrambled, but no other standard insurers would take him for his med mal insurance. He has lost his prior acts coverage, so any claims prior to the cancellation that are made now are not covered. The non standard insurers quoted a $10K deductible for his medical malpractice insurance, which he never had with his former insurer. He has no free tail therefore it will cost him 2 to 3 times the annual premium if he wants to retire with tail. He lost his unlimited coverage for defense. Now the defense coverage is inside the limits, and he pays 30% more for his med mal insurance.

When we spoke with the doctor, he had no clue that his medical malpractice insurance was canceled. He fired his bookkeeper and hired us to get him back into the standard insurance market which will take a few years. Meanwhile, he runs the risk of being sued from his past services, with no insurance to protect him because he lost his prior acts.

Doctors, let your bookkeepers or controllers know that the first bill to pay is the Medical Malpractice Insurance bill. You can lay off employees or cut salaries, but pay this bill first and on time. Uncovered medical malpractice claims, due to loss of coverage, can wipe out the practice and possibly your personal assets.

Medical malpractice is an act of omission on the part of a doctor, nurse or a therapist. The act can cause injury or death due to sub standard practice by the medical personnel. Medical professionals are liable to pay in case of such an omission. Medical insurance has a department that caters to insurances for medical professionals. These plans insure costs that are incurred as liability claims arising from an omission. Premiums for medical malpractice insurance plans are higher, due to the high amount of claims and difficulty in earning profits.

In California doctors who know the business, and are aware of standard practices in the medical field, start most of medical malpractice insurance companies. Medical malpractice can be burdensome for medical professionals due to huge claims from victims. Some times they may not be malpractice but only an act of carelessness that is normal to human nature. Most of these claims arise from errors during diagnosis or surgery.

America is known for its excellent medical service and facility, but is expensive too. Any error or negligence on the part of medical staff can have long-term effects such as injury or death. Medical malpractice insurance companies are basically instituted for the benefit of doctors. The rates for these plans can be made more affordable to doctors, by ensuring that there are fewer errors or omissions. There are a few legislations that have been passed in the state of California that discourage the plaintiff from filing claims. This has resulted in fewer claims and protects the interest of medical professionals. It is not always possible for them to prove innocence, even if sometimes these errors were unavoidable. During such times medical malpractice insurance is a boon to them.

Companies in California offer a variety of plans catering the medical personnel?s needs. Features of these plans can be known through representative of the insurance company. Affordable premium rates can be selected after researching online.