medical malpractice
by John at 2/23/2005 09:42:00 AM
The NYT has an interesting article on medical malpractice premiums.
The recent rise in malpractice premiums far outpaces to rise in payments for malpractice claims (which actually dropped last year by 8.9%). Industry specialists think that, among the drivers for higher malpractice premiums, are poor returns on insurance company investments (insurance companies make most of their money through investments, e.g. stocks) and industry competition in the 1990s that kept premiums artifically low. Some researchers also claim that in the 1990s and early 2000s there has been only a very weak relationship between malpractice claim awards and malpractice premiums.
The recent rise in malpractice premiums far outpaces to rise in payments for malpractice claims (which actually dropped last year by 8.9%). Industry specialists think that, among the drivers for higher malpractice premiums, are poor returns on insurance company investments (insurance companies make most of their money through investments, e.g. stocks) and industry competition in the 1990s that kept premiums artifically low. Some researchers also claim that in the 1990s and early 2000s there has been only a very weak relationship between malpractice claim awards and malpractice premiums.
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