When Republicans talk about cutting medical care costs, they frequently say that they will work to cap medical malpractice claims. While that is a good start, there is a more refined way to proceed: the arbitration of medical malpractice claims before approved malpractice panels. Such a law would allow doctors to ask patients to agree ahead of treatment to resolve any malpractice claims before an arbitration panel. These panels would consist of one or three people depending on the size of the claim. Members of the panel would include at least one medical professional. The panels would not be allowed to award punitive damages; nor would the panels be likely to award excessive damages on an emotional basis. Further, since the panels would have medical personnel on them, the need for excessive defensive testing by doctors and hospitals would be reduced since someone who understood the need for testing (rather than the emotional appeal of an injured plaintiff) would be making the decision. Finally, there could be a cap on contingent legal fees of 20% of the award. While this is less than the current level, it would be justifies since the cost of an arbitration should be substantially less than the cost of a full blown trial.
Medical arbitration has a group of benefits: First, there would be fewer tests done for legal defense purposes as discussed above. Second, frivolous and fraudulent claims would be less likely to proceed as there would be a more educated trier of fact and a greater likelihood of a correct outcome. Third, the cost of trying these cases would be removed from the state court system reducing the cost to the state. Fourth, patients who suffer severe damage would still be able to recover for their losses even without a cap. Fifth, the patients who are injured would get a bigger slice of the pie with the lawyers having their share reduced. Sixth, there should be a great reduction in the time between the injury and any recovery. Seventh, a system like this should allow the hospitals and doctors in the state to get reductions in their insurance premiums.
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