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Investigating medical malpractice victim compensation: micro-level evidence from a professional liability insurer’s files

Author

Listed:
  • Samantha Bielen

    (Hasselt University)

  • Peter Grajzl

    (Washington and Lee University
    CESifo)

  • Wim Marneffe

    (Hasselt University)

Abstract

We examine micro-level data on medical incidents recorded by a major Belgian professional liability insurer to identify the predictors of medical malpractice victim compensation. The data allow us to track each instance of suspect medical malpractice from the moment of insurer’s knowledge about the incident to file closure. We are, therefore, able to investigate the determinants of both the incidence and amount of indemnity payment while addressing the associated sample selection concerns. Conditional on some indemnity having been paid, provider specialty risk predicts the indemnity payment amount, but only via the effect of sustained injury type. We find little evidence of vertical or horizontal inequities in indemnity payment. Our results highlight previously overlooked features of the incident resolution process as quantitatively important predictors of victim compensation.

Suggested Citation

  • Samantha Bielen & Peter Grajzl & Wim Marneffe, 2019. "Investigating medical malpractice victim compensation: micro-level evidence from a professional liability insurer’s files," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(8), pages 1249-1260, November.
    • Handle: RePEc:spr:eujhec:v:20:y:2019:i:8:d:10.1007_s10198-019-01093-8
    DOI: 10.1007/s10198-019-01093-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Medical malpractice; Victim compensation; Provider specialty risk; Equity; Resolution process;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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