Over at epluribus media, there is an interesting article on
the impact of Texas tort reform on the number
of practicing physicians in Texas. Quick background: tort reform was passed in Texas in 2003 in an attempt to limit the
burden of rising medical malpractice insurance premiums on physicians. The medical lobby’s logic follows that
passing tort reform would make Texas more “doctor friendly” and thereby improve quality of,
and access to, patient care.
But has it? The
article cites statistics on the number of physicians, new license applications,
and number of patient lawsuits (taken from the University of Texas System). The number of physicians is up, but the
growth rate of same is down: this does
not bolster the original argument for tort reform – that physicians are going
to come to Texas
in droves, improving access to and quality of care.
Conversely, the number of lawsuits is down. For sake of debate, are the lawsuits down
because otherwise injured patients cannot find an attorney interested in taking
up the fight, given the cap on damages? Or, do the injured say “I’m injured, but the pain of the struggle is not
worth what I can recover?” If either of
these is true, then we have done nothing more than transferred wealth from the
backs of the bruised to the wallets of: (a) the doctors, if premiums have decreased, (b) the insurance
companies, if profits have increased as a result of tort reform (I am too busy
to check on this), or (c) both. Not terribly palatable, from a public policy perspective.
Moreover, the lack of penalty (e.g., increased premiums on
poor doctors) no longer serves as a closed loop means of feedback which would
otherwise encourage docs to clean up or ship out. Quality of care in this case deteriorates.
The questions which I will continue to ponder:
(1) Should
government legislate malpractice damages caps (ie. the front-end)?
(2) Or
should they legislate insurance premiums (ie. the back-end)?
(3) Or
stay out of it all together, and let free markets reign?
(4) How
do we know when govt. interdiction in the medical malpractice insurance markets
is working or not? And if we eventually
come down to “not”, what will it take for the govt to step aside and the market
find steady state?
I see arguments for both sides. Free market theorists argue that the most
lawsuits will concentrate on the poor doctors, who accordingly are driven from
the market or improve their quality of care. Physicians and Insurers say that tort reform makes for a more favorable
environment to deliver care, and therefore will improve access to care, such as
in rural areas (as mentioned in the article). Both sides argue that patients win.
I for one sincerely hope this issue continues to draw scrutiny. The light of day will drive accountability,
and let us all know if mistakes were made, and if so, how/when to adjust course. I suspect the solutions are as complicated as the problem itself.