The Growth Of Physician Medical Malpractice Payments: Evidence From The National Practitioner Data Bank

TLDR

Malpractice payments are dominated by settlements (96%) rather than trial judgments (4%), yet focus on judgments or extreme awards obscures the overall growth trend. We used data from the National Practitioner Data Bank (NPDB) to study the growth of physician malpractice payments. Average physician malpractice payments rose 52% from 1991 to 2003 (≈4% per year) and now exceed $12 per capita annually, mirroring overall health‑care cost inflation.

Abstract

We used data from the National Practitioner Data Bank (NPDB) to study the growth of physician malpractice payments. Judgments at trial account for 4 percent of all malpractice payments; settlements account for the remaining 96 percent. The average payment grew 52 percent between 1991 and 2003 (4 percent per year) and now exceeds $12 per capita each year. These increases are consistent with increases in the cost of health care. A preoccupation with data on judgments, extreme awards, or specific specialties results in an incomplete understanding of the growth of physician malpractice payments.