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Report: Ohio malpractice cases drop, cost to defend increases

It cost an average of $35,603 for every closed malpractice claim in the state, according to the department’s Ohio Medical Professional Liability Closed Claim Report. In 2006, closed claims cost an average of $25,672. In 2005, expenses averaged $24,443, according to the report.

COLUMBUS, Ohio — There seem to be fewer malpractices cases than ever in Ohio but the costs to defend the claims continued to rise, according to the latest data from the state Department of Insurance.

It cost an average of $35,603 in legal and investigatory expenses for every closed malpractice claim in the state, according to the department’s Ohio Medical Professional Liability Closed Claim Report (pdf).

That amount was up 39 percent from 2006 during which closed claims cost an average of $25,672. In 2005, claims expenses averaged $24,443, according to the report.

In all, Ohio paid out $235.5 million to malpractices cases. The report is based on 2007 data, which is the most recent data available. Department spokesman Jarrett Dunbar said closed-claim data lags about one year.

Though the average cost of closing a claim is rising, the number of cases has fallen in recent years. The department said there were 3,451 closed claims reported largely by authorized insurers and self-insured groups in 2007.

In 2006, there were 4,004 closed claims. In 2005, 5,051 claims.

The drop in cases could be attributed to the increasing impact of Ohio tort reform, said Mary Yost, vice president of public affairs for the Ohio Hospital Association. The bulk of that reform happened in 2003 via Ohio Senate Bill 281, which limited attorneys fees, provided new ways doctors could challenge lawsuits and capped some damages.

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“We also like to think this is related to efforts of hospitals and all health-care providers to improve quality of care and do more systematically to prevent medical mishaps and things that could result in lawsuits being filed,” Yost said.

Dunbar said there are not enough closed claims to judge the impact of 2003 reform on medical malpractice. He declined to offer further analysis on the latest report.

The number of cases in 2007 that led to a payout was up slightly. About 22 percent of cases included an indemnity payment, up from roughly 20 percent in 2006 and 21 percent 2005.

Nearly two-thirds of the cases that didn’t receive a judgment were either dismissed or dropped, the report stated.

Half the malpractice claims closed in 2007 came from Northeast Ohio – and the rate of judgment (25 percent) was slightly higher than the state average. The region paid out nearly $108.9 million in malpractice claims – almost half of the state’s total, according to the report.

The claims covered in the latest report focus on claims closed in 2007, though the suits could have originated years earlier. Payouts cover only indemnity and do not include attorneys fees and other costs.

(Gavel and stryker photo courtesy of KeithBurtis)