Tuesday, October 20, 2015

Nondisclosure Agreements in Medical Malpractice

The amount of a financial settlement in medical malpractice cases often gets a lot of coverage in the media, especially if it is in the millions.  However many settlements include nondisclosure agreements.  Those cases rarely receive any attention even if they can have widespread or significant consequences.

Researchers at the University of Texas recently found that nearly nine in ten settlements withing the university health system involved nondisclosure agreements.  The University of Texas medical care system provides medical malpractice insurance for more than 6,000 physicians at six campuses in five different cities in Texas.   

The Journal of the American Medical Association recently reported on the study that was done by these University of Texas researchers.  Of the time periods that were studied, researchers found that there were 715 medical malpractice claims closed, and 150 settlements were reached.  Nearly 50% of the nondisclosure provisions prohibited discussion by patients and family about the details of the medical errors.  In 9% of these settlements, doctors and hospitals were also prohibited from discussing the cases and any related medical errors.

Although the study focuses on just one medical system, the information can be pertinent to other large medical systems and the healthcare industry as a whole.  Preventing the disclosure of important information, especially to state boards, can have negative long-term effects.  For example: future patients of the physician will not have access to pertinent information regarding the physicians past record; and hospitals cannot address problems or take steps to correct them if all relevant information is kept confidential.

Many healthcare professionals agree that while nondisclosure agreements are legally valid, they can have a negative effect on patient safety because they discourage honest and open discussion of medical errors or mistakes.  It may be time to reevaluate the inclusion of nondisclosure agreements in medical malpractice settlements.


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