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Medical Malpractice Statistics

There has also been a large jump in million-dollar verdicts. In 1995-97, a little more than one in three (36 percent) cases resulted in an award of $1 million dollars or more. By 1998-99, the rate of million-dollar awards reached 43 percent. By 2000-01, more than one-half (54 percent) of medical malpractice awards were at least $1 million dollars, and one-quarter of all awards today exceed $2.7 million.28

The basis of malpractice claims against physicians generally falls into one of three categories. Data from a large malpractice insurer indicate that failure to diagnose is the most common basis for a claim, at 28 percent of claims. Surgery-related claims account for 27 percent claims, and improper treatment 26 percent of claims.29 The remaining 19 percent were for claims such as adverse reaction to anesthesia, injection site injuries and lack of informed consent.

Punitive damages are relatively infrequent in malpractice cases, occurring in 2 percent of cases during 1999-2001. This figure somewhat understates the impact of such awards, however, since punitive damages can be enormous. A survey of jury verdicts in malpractice cases in 1996 found that the median amount of punitive damages, when awarded, was $2.5
million. The large majority of malpractice claims never reach a trial. Threefifths (61 percent) of claims are either dropped or dismissed, while one-third (32 percent) are settled out of court prior to trial. Of those cases that do go to court, defendants prevail 60 percent to 80 percent of the time. The relatively low success rate is consistent with the assertion that many malpractice claims are without merit. Even if most claims that reach trial lose, health care professionals still incur large costs to defend themselves. According to the Physicians Insurer Association of America, defense costs averaged close to $86,000 per claim in cases where the defendant won at trial.