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    Saturday, February 26, 2005

    Malpractice Controversy: Walter Olson dissects the New York Times' take on malpractice rate increases.

    And lawyer Ted Frank offers a solution to the malpractice tort reform problem - a malpractice insurance company that's run by lawyers:

    The Association of Trial Lawyers of America, or some other such well-funded trial lawyers’ group, should start its own medical malpractice insurance firm. Take some of the billions of dollars won in the tobacco cases, and invest it in offering medical malpractice to the doctors of America. The Sulzbergers, whose family fortunes are suffering with their investment in the New York Times, may wish to chip in as well. If one were to believe the opponents of lawsuit reform, it’s surprising that trial lawyers would want to put their savings anywhere else.

    Tort reformers claim that practicing doctors are sued for malpractice indiscriminately. But if it's really true, as Ralph Nader’s Public Citizen claims, that only 5-10% of the doctors are responsible for most or “the bulk” of malpractice, this new insurance firm (let's call it Doroshow Insurance) can undersell other insurers by experience-rating, the practice of using historical data to determine the risk of future claims. Doroshow Insurance will simply offer its lower insurance rates to the other 90-95% of doctors and refuse to ensure the “small number” singled out by the Times. Because this 90-95% will exclude “the bulk” of malpractice claims, Doroshow Insurance and its investors will make even more profits than the “excessive profits” made by the current insurers.


    Good point. Why haven't any of the insurance companies thought of doing that?




     

    posted by sydney on 2/26/2005 08:26:00 PM 0 comments

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