Day on Torts

Four professors have written an article titled "Do Poor People Sue Doctors More Frequently? Confronting Unconscious Bias and the Role of Cultural Competency."

The article concludes that "Contrary to popular perception, existing studies show poor patients, in fact, tend to sue physicians less often. This may be related to a relative lack of access to legal resources and the nature of the contingency fee system in medical malpractice claims."

Quite frankly, there is no original research in this article, but it is a good collection of research that has been out there for several years.

State Volunteer Mutual Insurance Company, the Tennessee medical malpractice insurer owned by the doctors themselves, has had another profitable year even with its significant rate decrease.

The company, which insures about 75% of the doctors in the state, has announced the following financial results and other data for the year ending December 31, 2011:

• Net income – $28,012,000.
• Policyholder’s Surplus (equivalent to net worth): $436,424,000
• 2011 Dividend – $20,100,000
• Total Dividends paid during company existence – $300,000,000
• Rate of return on investments – 5.3%
• Average decrease in premiums over last 3 years – 31%  (mature, base premiums)
• Insured physicians – 14, 476

The gross premiums written have decreased since 2007 for two reasons. First, SVMIC has lost almost 1600 doctors as clients during that period.  Second, rates have declined substantially during that period.  The combination of the two factors has resulted in a decreased of gross premium written of a little over $90,000,000.  Profits remain high because investment income has remained about the same (actually, it is a little higher) and net paid loss and loss adjustment expenses have increased only about 5% in five years.  Surplus during the 5 year period has increased over 80% despite payment (through premium credits) of $48,000,000.

Insurance Journal reports that the parents of a child born with cystic fibrosis sued various Montana  health care providers,  saying that had they known of the genetic disorder they would have terminated the pregnancy.

Cystic fibrosis causes sticky mucus buildup in the lungs and other organs, leading to infections, digestive problems and death in young adulthood. The typical life expectancy is about 37 years, according to the Cystic Fibrosis Foundation.

The couple alleges that genetic testing the mother underwent in the first trimester failed to explore whether the child was likely to have cystic fibrosis. The parents would have terminated the pregnancy because they claim they were not emotionally or financially equipped to care for a child with that illness.