The Best Data Suggests That Malpractice Premiums have Not Risen Steadily
According to the May/June issue of Health Affairs physicians' medical malpractice premiums have not steadily risen and do not constitute a crisis for medical practices. In support of this statement, Health Affairs quotes a survey of the American Medical Association of self-employed physicians taken between 1970 and 2000. According to the AMA survey, physician premiums rose until 1986, then declined until 1996, and rose thereafter. However, the physician malpractice premiums were actually lower in 2000 that they were in 1986. The survey reflected National trends with variations in obstetrics/gynecology, surgery and anesthesiology in nine regions.
Based on year 2000 dolars, mean malpractice premiums increased from $5,934 in 1970 to $20,106 in 1986 and then declined to $15,478 in 1996. Premiums rose from 1996 until 2000 (when the AMA discontinued the surveys). At the time the surveys were discontinued, premiums in 2000 were $18,400, which was still lower that the 1986 premiums.
Noteworthy was the fact that the AMA study demonstrated that while malpractice premiums were falling from 1986 to 2000, all other physician practice expenses were rapidly increasing. Premiums accounted for 6% of total practice expenses in 1970, 11% in 1986, 6% in 1996, and 7% in 2000. According to Suffolk University law professor Marc Rodwin and his co-authors:
"The reported recent demise of medical practice as a result of rising malpractice premiums has been greatly exaggerated." "The AMA surveys indicate that premiums have consistently been a small percentage of total practice expenses."