4MyChild: Help and Hope for Life

December 4, 2006

Tort Reform: Does Tort Reform Affect Medical Care?

An interesting article by Jonathan Klick and Thomas Stratmann, concludes that tort reform, limiting insurance settlements in malpractice claims, actually leads to worsening health care and increased infant mortality.

Many states have passed medical malpractice law reforms in an effort to retain and attract physicians. However, it is unclear what the net public health effect of such reforms is. While reforms are likely to help states retain doctors, they also diminish incentives to provide a high level of health care. We provide empirical evidence that some malpractice reforms have helped states retain doctors while others have not. However, retention of doctors comes at a cost. We show that some malpractice law reforms have lowered the level of care provided, as indicated by an increase in infant mortality. This suggests that some of the tort reforms lead to worsening health outcomes.

The complete article can be downloaded here http://papers.ssrn.com/sol3/papers.cfm?abstract_id=453481 in PDF format.