AMA report highlights cost of malpractice claims

A physician's average cost for defending a malpractice claim was more than $47,000 and the average payout was almost $332,000 in 2010, according to a report from the American Medical Association.

Researchers analyzed financial data, claim disposition and policy limits from a sample of medical liability claims that closed between 2001 and 2010 and were aggregated by Physician Insurers of America.

The report also stated that in 2010, 63.7% of all closed claims were either dropped, withdrawn or dismissed—but still cost almost $27,000 to defend and accounted for more than one-third of total defense expenses for the year.

Another AMA report analyzed malpractice insurance premiums from 2004-2011 that appeared in annual rate surveys published by the Medical Liability Monitor.

The report highlights how rates continue to climb and how obstetricians/gynecologists and surgeons in New York are now paying premiums of almost $207,000 and $129,000 respectively.

The reports are part of the AMA Policy Research Perspective series and are available to AMA members.