AMA’s new medical liability report demands action – now 

The American Medical Association’s (AMA) Medical Liability Reform NOW! 2025 report sounds the alarm: medical liability premiums are climbing, and a hard market – where policies are more expensive and harder to obtain – could be next.

This year’s report emphasizes the problematic rise in liability premiums, with nearly 50% of premiums increasing in 2024 – the highest percentage since 2005. “Taking action to improve the medical liability environment is important because it ultimately affects patients’ access to care,” said Allen Hardiman, PhD, senior economist for the AMA, highlighting how the threat of lawsuit abuse can discourage doctors from practicing in high-need areas and jeopardize access to care.

The AMA’s comprehensive resource also outlines liability reform efforts in state legislatures, highlighting incremental changes in Colorado and Montana’s limits on noneconomic damages. These adjustments aim to stabilize the liability climate by discouraging lawsuit abuse while also ensuring that deserving patients are fully compensated. Additionally, the AMA provides updated charts on state statutes governing liability reform, expert witness qualifications, and arbitration laws.

Beyond statistics, the report underscores the urgent need for federal medical liability reform. Reasonable limits on noneconomic damages, proven to stabilize premiums and increase the physician workforce, remain a cornerstone recommendation. The future of care is clear: without systemic reform, liability trends could deepen disparities and financial strains experienced by patients across our health care systems.

Explore the full AMA report here, for detailed insights, state-by-state updates, and comprehensive liability reform recommendations and strategies.

Delivery dilemma: Obstetricians face increasing risk from maternal care

The U.S. is facing a women’s health care crisis, but options exist to improve care and reduce liability exposure.

In an Inside Medical Liability article, author Gene Boerger highlights opportunities to improve obstetric care for women and reduce liability risk. He offers a three-step, proactive, data-driven approach that emphasizes collaboration to drive improvement.

“Research consistently demonstrates that adverse birth outcomes, such as birth trauma and severe maternal events, greatly influence the frequency and severity of malpractice claims,” Boerger stated. He noted that several addressable complications frequently lead to inflated health care costs, prolonged hospital stays and added stress for patients and providers. By addressing these issues proactively, healthcare organizations can promote safer medicine.

Collaborative strategies, such as data-driven analysis, timely reporting, and physician education, have already shown promise in reducing severe maternal complications and liability risks in some health systems.

Boerger cites one health care network that reduced severe maternal complications by 30% over three years while also lowering medical liability claims and associated costs in obstetrics. This demonstrates the dual benefits of enhancing patient safety and mitigating financial risks through proactive measures.

By utilizing available analysis tools, health facilities can reduce avoidable risks and lower liability costs. As Boerger stresses, prioritizing safety and fostering collaboration is key to reversing current troubling trends.

To read more about improving the future of maternal care, for physicians and their female patients, click here.

 

Negatives of liability lawsuits: High costs, uncertainty

Even though most medical liability cases against radiologists result in a positive outcome for defendants, the costs – both financial and emotional – remain a negative.

A recent analysis of claims published in Current Problems in Diagnostic Radiology revealed that nearly half of radiologists will face a lawsuit by age 60, often related to diagnostic errors. Even when they win, the toll on radiologists and their patients is still significant.

“The increasing demands in medical imaging result in radiologists experiencing significantly higher workloads with increasing pressure to provide quicker turnaround times,” the analysis, authored by a team of physicians and attorneys, highlights. This pressure, coupled with litigation fears, can lead to burnout, reduced productivity, and challenges in maintaining quality care.

Financially, cases can reach multi-million dollars. Radiology settlements from 2008 to 2018 included in the study averaged $1.5 million, and jury awards climb even higher, averaging $2.85 million awarded to plaintiffs. Even when cases are dismissed, the legal fees are high – as is the emotional strain of defending one’s reputation and decision-making.

Further, all patients pay the price of medical lawsuit abuse. The threat of litigation leads to the practice of defensive medicine, the ordering of unnecessary tests and procedures, potentially causing slower turnaround times on imaging results and rising health care costs.

To read more about the state of our nation’s medical liability system on the practice of radiology, click here.