August 2018 Newsletter

The reality of defensive medicine With projections about the cost implications of defensive medicine in the hundreds of millions of dollars, a new study showed greater insight into how physicians treated patients when they were not subject to the threat of lawsuits. The reality of defensive medicine became apparent when researchers from Duke and MIT, on behalf of the National Bureau of Economic Research, focused on active-duty military who were treated by government health care systems that are protected from medical liability lawsuits. When compared to treatment received by active-duty military from civilian medical professionals who are subject to liability, the study found “suggestive evidence that liability immunity reduces inpatient spending by 5% with no measurable negative effect on patient outcomes.” The study did an in-depth analysis on quality indicators to be sure doctors weren’t providing substandard care, and found no instances where the quality of care in the military health care facilities appeared to be worse. “Our analysis demonstrates that the active duty receiving care on the base are treated notably less intensively, without any health outcome consequences. Considering the lack of liability recourse for his treatment group, this pattern of results is suggestive of a strong degree of…

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July 2018 Newsletter

Wisconsin court preserves reforms – and access to care A decision this month by Wisconsin’s state Supreme Court kept intact liability reforms that have placed reasonable limits on noneconomic damages and resulted in lower health care costs for patients and physicians. The court upheld the state’s $750,000 limit on non-economic damages while continuing to guarantee that deserving patients would receive full and unlimited compensation for past and future medical care as well as lost wages. “Today’s Court decision preserves Wisconsin’s balanced medical liability system that has been instrumental in attracting physicians to communities across Wisconsin, while providing assurance to injured patients that they will receive payment for the full amount of a jury’s award of medical expenses, lost wages, and other economic losses,” Wisconsin Hospital Association President Eric Borgerding stated. The state maintains an Injured Patients and Families Compensation Fund using assessments charged to physicians, clinics, hospitals and other participants and covers all damages above their primary insurance limits. Premiums paid by physicians to the fund have been dropping since 2014, with rates falling by 34 percent in 2016, 30 percent last year and an anticipated drop of another 30 percent this year. This month’s decision comes as a reversal…

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June 2018 Newsletter

Liability reform empowers physicians to avoid defensive medicine While evidence strongly suggests that the potential for liability lawsuits results in treatments and tests that may not be otherwise necessary, new data shows that medical liability reform may be empowering physicians to go on the offensive together with their patients. A newly published analysis compared diagnosis and treatment patterns in patients suspected of having coronary artery disease between states where liability reforms have been adopted and states without non-economic damage limits in place. The study included 36,647 physicians in nine states with reasonable limits adopted between 2003 and 2005, and 39,154 in states that had not taken any action to utilize limits on non-economic damages to rein in lawsuits. Physicians in states with reasonable liability limits were less prone to rely on angiography as a first diagnostic test and more likely to order noninvasive stress testing, the report found. In addition, fewer patients were referred for angiography following initial stress testing. These physicians also performed fewer percutaneous coronary intervention (PCI) procedures after ischemic evaluation, with indications that these patients were offered medical therapy as an alternative. “Our study suggests that physicians who face lower malpractice risk may be less concerned with…

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