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Abstract Proceedings EROC 2011 - New York Osteopathic Medical ...

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<strong>EROC</strong> <strong>2011</strong> <strong>Abstract</strong> <strong>Proceedings</strong> – March 4, <strong>2011</strong><br />

Traditional Rotating Internship, St. John’s Episcopal Hospital, Far Rockaway, NY<br />

Title: <strong>Medical</strong> malpractice caps effects on medical specialty and its influence on physician<br />

supply<br />

Author: Wayne D. Sherman, DO, MBA, MS<br />

St. John’s Episcopal Hospital, Dept. of American <strong>Osteopathic</strong> Association, Far Rockaway, NY<br />

11691<br />

Purpose: The purpose is to investigate two hypotheses: (1) <strong>Medical</strong> Malpractice caps have a<br />

bigger effect on one specialty more than the other, and (2) <strong>Medical</strong> Malpractice caps have<br />

increased the supply of physicians in states that have caps.<br />

Background: The medical malpractice insurance crisis that begun in the mid 1970s, and<br />

resurfaced in the 1980s, is once again threatening the American healthcare system. Malpractice<br />

premiums vary considerably across medical specialties, state boarders, and within state counties.<br />

Physicians in three states have already immobilized and initiated work stoppages in protest to the<br />

rapidly rising malpractice premiums. Currently, thirty-two states have legislation either capping<br />

noneconomic damages or limiting total damages. States with caps have experienced a more<br />

rapid increase in their supply of physicians.<br />

Methods: Information about State medical liability laws was obtained from the National<br />

Conference of State Legislatures, the American Tort Reform Association, and the law office of<br />

McCullough, Campbell & Lane. <strong>Medical</strong> malpractice payment data was obtained from the<br />

National Practitioner Data Bank and the General Accounting Office. Physician data was supplied<br />

by the U.S. Department of Health and Human Services and the various state medical licensing<br />

boards. As this is healthcare policy research, IRB approval was not necessary.<br />

Results: <strong>Medical</strong> malpractice caps have increased physician supply in rural counties.<br />

Conclusion: <strong>Medical</strong> malpractice caps have not made a major impact on physician supply<br />

statewide. However, the caps have increased physician supply by 3% - 5% in the rural counties.<br />

This increase has been most prominent in the surgical specialties and the support specialties.<br />

Furthermore, states with caps of $250,000 or less have seen the greatest impact on physician<br />

supply.<br />

22

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