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Malpractice litigation and medical costs in the United States

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  • Brandon Roberts
  • Irving Hoch

Abstract

This paper examines the relationship of medical malpractice litigation and medical costs in the United States. We relate medical malpractice settlements to medical costs for 190 metro and non‐metro areas in the United States over a 5‐year period and find that litigation is positively and significantly related to medical costs. Using a panel data set and a fixed‐effects specification, the estimates indicate that malpractice litigation accounts for roughly 2–10% of medical expenditures, with the impact exceeding the dollar amount of settlements. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Brandon Roberts & Irving Hoch, 2009. "Malpractice litigation and medical costs in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(12), pages 1394-1419, December.
    • Handle: RePEc:wly:hlthec:v:18:y:2009:i:12:p:1394-1419
    DOI: 10.1002/hec.1436
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    References listed on IDEAS

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    1. Rosa Ferrer, 2015. "The Effect of Lawyers' Career Concerns on Litigation," Working Papers 844, Barcelona School of Economics.
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    3. Charles L. Baum, 2020. "The effects of medical malpractice tort reform on physician supply an analysis of legislative changes from 2009 to 2016," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 540-575, October.

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