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Key Stats on Medical Malpractice

(from Jury Verdict Research; as reported in April 23, 2001 issue of Medical Economics, unless otherwise indicated) 

The median malpractice award has climbed 60% between 1993 and 1999:

 1993                $500,000

1994                $375,000

1995                $500,000

1996                $454,565

1997                $500,725

1998                $750,000

     1999                      $800,000

Similarly, the median malpractice settlement has also climbed 63% between 1993 and 1999

1993                $400,000

1994                $287,500

1995                $340,000

1996                $355,000

1997                $400,000

1998                $500,000

     1999                     $650,000 

Although plaintiffs’ share of favorable jury verdicts in malpractice trials declined slightly by 2 percentage points in 1999, the proportion of million-dollar jury awards increased 6 percentage points.  The percentage of $1 million or higher jury awards rose from 39% in 1997-1998 to 45% in 1998-1999. 

On large insurer that insures physicians nationwide – St. Paul – saw the number of claims in the $1 million or more dollar range double in one year from 27 cases in 1999 to 54 cases in 2000.  (American Medical News, March 5, 2001) 

While the proportion of cases involving punitive damages has remained low (3% in 1999), it’s the highest reported in the last seven years (1993-1999). 

More facts on punitive damages – A jury is more likely to consider punitive damages when wealthy defendants are involved.  Punitive damages are also more likely in suits against insurers.   A study of civil jury verdicts by RAND found awards of punitive damages in 24% of all verdicts against insurers.  In contrast, the awarding of punitive damages has been relatively rare in medical malpractice litigation.  Studies have indicated that punitive damages are awarded in less than 1.5% of verdicts in malpractice cases. (The New England Journal of Medicine, January 27, 2000)  As Brad Cohn, former president of the Physician Insurers Association of America has noted, “juries aren’t so kind with faceless corporate defendants.”  (Medical Economics, July 1993)