Social inflation is the increased perception of risk and accountability. Society and media’s aim towards a 0% risk culture, with 100% accountability in a highly complicated system with individuals uniquely different. Tactics for recovering damages capitalize on the vulnerabilities of patients and healthcare professionals and focus on the disproportionate impact of non-economic (pain and suffering).

- Birth injury bias. litigation firms advertising and targeting birth injury cases for high damage claims. Leads to shortage of physicians providing obstetric services.

- Litigation financing. Due to high verdicts, private equity investment is fueling more lawsuits and less likely to settle small claims

- Nefarious behavior.While nefarious behavior is ongoing challenge for healthcare professionals in providing care, Media coverage of high verdicts can amplify behaviors by patients/families.

- US litigation climate. More lawyers than doctors with high rewards for personal injury.

- Healthcare costs. Unpredictable or unavoidable outcomes in setting of high healthcare costs can bias jury based on shared experience.

The medical liability crisis of 1970s resulting in mass exodus of physicians from healthcare and increased healthcare costs. In 1970s, physicians and healthcare organizations had goal of improving safety and quality through transparency. Transparency of sharing data and analyzing outcomes. Although healthcare became exponentially better, litigation increased 500% leading to healthcare being uninsured by commercial markets. While some physicians left healthcare, others formed mutual insurance companies with their own money to support the continuation of healthcare.

We are now in another crisis. While most hospitals and physician groups self insure themselves or through mutuals, a singular nuclear verdict can lead to bankruptcy and disruption of care to THOUSANDS of patients.

CONSEQUENCES

- Financial strain on healthcare. Excessive verdicts deplete funds intended for patient care and lead to expensive defensive medicine

- Reduced access to care. Early retirements, career changes, and narrower specialties. Discomfort with offering advice outside of the specialty.

- Increased state expenses. States are supporting healthcare and courts. The communities of patients are supporting their State through taxes. Verdicts and excessive liability claims increases the states expenses.

- Physician burnout and suicide. Physician shortages lead to increased workload, high stress with #1 cause of suicide being workplace harm event or litigation claim.

- Personal exposure to physicians and small hospitals. A singular verdict can result in bankruptcy for physicians and hospitals.

SUPPORT legislation that is fair, reasonable and sustainable to patients and healthcare communities.

MINNESOTA BILL SF 3489

- Prevent Jury bias. Take measures to combat social inflation and avoid influencing jurors against physicians before a verdict.

- Fair economic damage. Ensure accurate assessment of medical expenses, future earnings.

- Caps on Non-economic damages. Pain/suffering is severely biased and subjective. ACS (American College of Surgeons) recommends $250K cap, while a proposed cap of $500K in Minnesota aims for a fair and sustainable amount for pain/suffering.

- Protection for physicians and healthcare professionals. When a physician maintains liability insurance and there is NO malicious or willful intent, a plaintiff can not pursue or collect judgement on a providers personal income, or assets.

- Reducing statute from 4 years to 2 years. This puts reporting consistent with most states. Longer statutes lead to unfair trials due to lack of recall, and delay in resolution of harm events. In addition, if a patient is harmed, filing an early claim is essential to future care of other patients.

CONTACT your legislators (both state house and senate where you work and live. Email them SUPPORT for SF3489 regarding medical liability reform

Information for contacting legislators: www.leg.mn.gov