When physicians admit medical mistakes, apologize and offer compensation for them, liability costs don't necessarily rise the way health providers and their attorneys have historically feared. In fact, during a recent study of such a program implemented at the University of Michigan Health System (UMHS), the opposite phenomenon took place.

According to researchers at UMHS and Brigham and Women's Hospital in Boston, the following changes occurred after beginning the program in July 2001:

• The monthly rate for new claims fell from just over seven per 100,000 patient encounters to 4.52 per 100,000, or 36 percent.
• The average monthly rate of malpractice lawsuits filed against the hospital fell by more than half, from 2.13 per 100,000 patient encounters to 0.75 per 100,000.
• The median time it took to resolve claims also dropped by several months, while the mean costs for liability, including compensating patients and paying attorneys, fell by about 60 percent.
• The average cost for lawsuits that were filed decreased, from nearly $406,000 to $228,000.

However, potential weaknesses of the study include the fact that "the authors could not distinguish disclosures initiated by the health system from those offered in response to a patient complaint" and that there was no control group with which to compare the results. It's also unclear whether the same results would apply to physicians in private practice or who purchase their own liability insurance, as UMHS docs were covered by their institution.

According study author Allen Kachalia, medical director of quality and safety at Brigham and Women's Hospital in Boston, "Our study does not prove a 'disclosure-and-offer' program will reduce liability. What it shows is [doctors and hospitals] can do this and not break the bank."

The research, funded by the Blue Cross Blue Shield of Michigan Foundation, is published in the Aug. 17 issue of the Annals of Internal Medicine.

To learn more,
- read this story in MedPage Today
- see this piece from HealthDay News via Bloomberg Businessweek
- check out the post in the Wall Street Journal Health Blog
- find the abstract from the Archives of Internal Medicine

Related Articles:
Saying 'I'm sorry' grows more popular in med mal cases
To lower your malpractice risk, be firmly committed to reporting, assessing and fessing up
Slashing malpractice costs with judge-mediated negotiation