The Growing Cost Of Medical malpractice. The Impact it Has On Patients and Physicians.

The Growing Cost of Medical Malpractice and the Impact It Has On Physicians And

Patients

A Directed Research Project Submitted

To The Faculty of the Graduate School of Business , Strayer University

Toward the Fulfillment of the Requirements for the Degree of

Masters of Science in Health Service Administration

By

Renee Malone

To

Dr . Wendy Whitner

December 2007

Strayer University Online Campus

This Directed Research Project conducted and orally defended

BY

Renee Malone

Has been reviewed and approved

By

Dr . Wendy Whitner p

Instructor

ABSTRACT

In the past decade , the premium rates for medical malpractice insurance have skyrocketed to astonishing levels . This tremendous increase has caused alarm in the medical community especially to those who avail of medical malpractice insurance coverage in to reduce the vulnerability to litigation in their practice . This proves to be problematic because physicians are in need of such insurance due to the alarming increase in the number of malpractice suits d against physicians every year . Without medical malpractice insurance physicians are exposed to tremendous financial risk which is a factor that may affect his /her practice or the way he /she may treat a patient The aim of this research study is to study the impact of the increasing costs of medical malpractice insurance premiums on physicians as well as patients . The financial risks involved as well as the growing trends in malpractice shall also be discussed in this research study TABLE OF CONTENTS

ABSTRACT 2

LIST OF TABLES 5

LIST OF ABBREVIATIONS 6

CHAPTER ONE

INTRODUCTION 7

Context of the Problem 7

Statement of Problem 9

Primary Research Question and Sub-questions : 10

Significance of the Study 11

Research Methodology and Design 11

Organization of the Study 12

Chapter Summary 13

CHAPTER TWO

LITERATURE REVIEW 14

Introduction 14

What is Medical Malpractice ? 14

Review of Trends and How It Affected Patients 16

Review of How Medical Malpractice affects Physicians 17

Review of Insurance Premiums 19

Review of Liability for Medical Malpractice 22

Review of the Financial Risk For Physicians Due To Medical Malpractice 24

Chapter Summary 25

CHAPTER THREE

RESEARCH METHDOLOGY AND DESIGN 26

Introduction 26

Primary Research Question and Sub-questions 26

Rationale for the Research Design and Methodology 27

Selected Research Design 28

Qualitative vs . Secondary Research 27

Primary vs . Secondary Research 30

Selected Research Strategies 31

Case-Study Method 31

Content Analysis of Documents 32

Collection and Analysis of Other Archival , Administrative , and

Performance Data 32

Research Methodology 34

Data Collection 34

Survey Questionnaire 35

Sample 35

Construction of Questionnaire 36

Methods Used to Answer Research Questions 37

Chapter Summary 39

CHAPTER FOUR

RESULTS 40

Introduction 40

Why the Growing Cost of Medical Malpractice Premiums ? 41

The Impact of the Growing Cost of Medical Malpractice on Physicians 46

The Impact of the Growing Cost of Medical Malpractice on Patients 57

Current Trends and Issues Involving Medical Malpractice 59

Financial Risks for Physicians due to Medical Malpractice Suits 65

Chapter Summary 73

CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS 74

Introduction 74

Discussion of Findings 76

Conclusions 80...