Medical Malpractice Settlements: How They Work

How do medical malpractice settlements work?  It depends on the laws of the state in which the alleged malpractice took place and the facts of the actual case. Most doctors are willing to settle to avoid uncertainty and the risk of a trial.

Negotiations for a settlement usually occur between the plaintiff and their lawyer, the defendant and their lawyer, and also the insurance company's lawyers. It may be very complex and lengthy or as easy as cutting a check. Economic damages are easy to quantify, yet suffering and pain is usually not easy to negotiate.

The physician can take her or his risks and go to trial. An attorney can help a physician get a clearer idea of the way in which a jury might see the facts of the case. Additionally, the physician's insurance company may have a mandatory maximum settlement payment after which they'll take their chances in court so going to trial may be the only option. A physician can be dropped entirely from coverage for any settlement a physician consents to or can see in an increase in malpractice premiums.

Settlements frequently contain nondisclosure agreements in which both parties agree to keep the terms confidential. This can benefit the doctor by protecting her or his reputation, however it doesn't reveal to possible patients whether a doctor was involved in a malpractice suit. There needs to be a way to discuss problems that lead to alleged medical errors without damaging capability to practice medicine or a doctor's standing.  Transparency is necessary to address patient safety issues and review medical errors to prevent them in the future.

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