OBJECTIVE: To determine whether Florida's implementation of a no-fault system for birth-related neurologic injuries reduced lawsuits and total spending associated with such injuries, and whether no-fault was more efficient than tort in distributing compensation. METHODS: We compared claims and payments before and after implementation of a no-fault system in 1989. Data came from the Department of Insurance's medical malpractice closed claim files and no-fault records. Descriptive statistics were compiled for tort claims before 1989 and for tort and no-fault claims for 1989-1991. We developed two projection approaches to estimate claims and payments after 1989, with and without no-fault. We assessed the program's performance on the basis of comparisons of actual and projected values for 1989-1991. RESULTS: The number of tort claims for permanent labor-delivery injury and death fell 16-32\%. However, when no-fault claims were added to tort claims, total claims frequency rose by 11-38\%. Annually, an estimated 479 children suffered birth-related injuries; however, only 13 were compensated under no-fault. Total combined payments to patients and all lawyers did not decrease, but of the total, a much larger portion went to patients. Compensation of patients after plaintiff lawyers' fees rose 4\% or 44\%, depending on the projection method used. Less than 3\% of total payments went to lawyers under no-fault versus 39\% under tort. CONCLUSION: Some claimants with birth-related injuries were winners, taking home a larger percentage of their awards than their tort counterparts. Lawyers clearly lost under no-fault. Because of the narrow statutory definition, many children with birth-related neurologic injuries did not qualify for coverage.
%0 Journal Article
%1 Sloan1998
%A Sloan, F. A.
%A Whetten-Goldstein, K.
%A Stout, E. M.
%A Entman, S. S.
%A Hickson, G. B.
%D 1998
%J Obstet Gynecol
%K Birth Injuries; Cerebral Palsy; Female; Florida; Humans; Liability, Legal; Malpractice; Obstetrics; Pregnancy
%N 3
%P 437--443
%T No-fault system of compensation for obstetric injury: winners and losers.
%V 91
%X OBJECTIVE: To determine whether Florida's implementation of a no-fault system for birth-related neurologic injuries reduced lawsuits and total spending associated with such injuries, and whether no-fault was more efficient than tort in distributing compensation. METHODS: We compared claims and payments before and after implementation of a no-fault system in 1989. Data came from the Department of Insurance's medical malpractice closed claim files and no-fault records. Descriptive statistics were compiled for tort claims before 1989 and for tort and no-fault claims for 1989-1991. We developed two projection approaches to estimate claims and payments after 1989, with and without no-fault. We assessed the program's performance on the basis of comparisons of actual and projected values for 1989-1991. RESULTS: The number of tort claims for permanent labor-delivery injury and death fell 16-32\%. However, when no-fault claims were added to tort claims, total claims frequency rose by 11-38\%. Annually, an estimated 479 children suffered birth-related injuries; however, only 13 were compensated under no-fault. Total combined payments to patients and all lawyers did not decrease, but of the total, a much larger portion went to patients. Compensation of patients after plaintiff lawyers' fees rose 4\% or 44\%, depending on the projection method used. Less than 3\% of total payments went to lawyers under no-fault versus 39\% under tort. CONCLUSION: Some claimants with birth-related injuries were winners, taking home a larger percentage of their awards than their tort counterparts. Lawyers clearly lost under no-fault. Because of the narrow statutory definition, many children with birth-related neurologic injuries did not qualify for coverage.
@article{Sloan1998,
abstract = {OBJECTIVE: To determine whether Florida's implementation of a no-fault system for birth-related neurologic injuries reduced lawsuits and total spending associated with such injuries, and whether no-fault was more efficient than tort in distributing compensation. METHODS: We compared claims and payments before and after implementation of a no-fault system in 1989. Data came from the Department of Insurance's medical malpractice closed claim files and no-fault records. Descriptive statistics were compiled for tort claims before 1989 and for tort and no-fault claims for 1989-1991. We developed two projection approaches to estimate claims and payments after 1989, with and without no-fault. We assessed the program's performance on the basis of comparisons of actual and projected values for 1989-1991. RESULTS: The number of tort claims for permanent labor-delivery injury and death fell 16-32\%. However, when no-fault claims were added to tort claims, total claims frequency rose by 11-38\%. Annually, an estimated 479 children suffered birth-related injuries; however, only 13 were compensated under no-fault. Total combined payments to patients and all lawyers did not decrease, but of the total, a much larger portion went to patients. Compensation of patients after plaintiff lawyers' fees rose 4\% or 44\%, depending on the projection method used. Less than 3\% of total payments went to lawyers under no-fault versus 39\% under tort. CONCLUSION: Some claimants with birth-related injuries were winners, taking home a larger percentage of their awards than their tort counterparts. Lawyers clearly lost under no-fault. Because of the narrow statutory definition, many children with birth-related neurologic injuries did not qualify for coverage.},
added-at = {2014-07-19T21:22:12.000+0200},
author = {Sloan, F. A. and Whetten-Goldstein, K. and Stout, E. M. and Entman, S. S. and Hickson, G. B.},
biburl = {https://www.bibsonomy.org/bibtex/2b12ca58b2461f5d9b5fd86c41d978078/ar0berts},
groups = {public},
interhash = {a587ad3e852aa8cc5424268fa9e90fc1},
intrahash = {b12ca58b2461f5d9b5fd86c41d978078},
journal = {Obstet Gynecol},
keywords = {Birth Injuries; Cerebral Palsy; Female; Florida; Humans; Liability, Legal; Malpractice; Obstetrics; Pregnancy},
month = Mar,
number = 3,
pages = {437--443},
pii = {S0029-7844(97)00705-9},
pmid = {9491874},
timestamp = {2014-07-19T21:22:12.000+0200},
title = {No-fault system of compensation for obstetric injury: winners and losers.},
username = {ar0berts},
volume = 91,
year = 1998
}