Stability, Not Crisis: Medical Malpractice Claim Outcomes in Texas, 1988-2002

54 Pages Posted: 25 Oct 2005 Last revised: 28 Jan 2015

See all articles by Bernard S. Black

Bernard S. Black

Northwestern University - Pritzker School of Law

Charles Silver

University of Texas at Austin - School of Law

David A. Hyman

Georgetown University Law Center

William M. Sage

Texas A&M University School of Law

Date Written: October 2005

Abstract

Using a comprehensive database of closed claims maintained by the Texas Department of Insurance since 1988, this study provides evidence on a range of issues involving medical malpractice litigation, including claim frequency, payout amounts, defense costs, and jury verdicts. The data present a picture of stability in most aspects and moderate change in others. We do not find evidence in claim outcomes of the medical malpractice insurance crisis that produced headlines over the last several years and led to legal reform in Texas and other states. Controlling for population growth, the number of large paid claims (over $25,000 in real 1988 dollars) was roughly constant from 1990-2002. The number of smaller paid claims declined. Controlling for inflation, payout per large paid claim increased over 1988-2002 by an estimated 0.1 percent insignificant) -0.5 percent (marginally significant) per year, depending on the data set, but actual payouts in tried cases showed little or no time trend. Real defense costs per large paid claim rose by 4.2-4.5 percent per year. Real total cost per large paid claim, including defense costs, rose by 0.8-1.2 percent per year.

The prior working paper version of this paper is available at http://ssrn.com/abstract=678601. The working paper version contains color figures, which were converted to black and white in the published version.

Suggested Citation

Black, Bernard S. and Silver, Charles M. and Hyman, David A. and Sage, William Matthew, Stability, Not Crisis: Medical Malpractice Claim Outcomes in Texas, 1988-2002 (October 2005). as published in 2 Journal of Empirical Legal Studies, pp. 207-259 (2005), Columbia Law and Economics Working Paper No. 287, U Illinois Law & Economics Research Paper No. LE05-002, U of Texas law, Law and Econ Research Paper No. 030, Available at SSRN: https://ssrn.com/abstract=770844

Bernard S. Black (Contact Author)

Northwestern University - Pritzker School of Law ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States
312-503-2784 (Phone)

Charles M. Silver

University of Texas at Austin - School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States
512-232-1337 (Phone)
512-232-1372 (Fax)

David A. Hyman

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States

William Matthew Sage

Texas A&M University School of Law ( email )

1515 Commerce St.
Fort Worth, TX Tarrant County 76102
United States

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