New Study Shows Georgia Malpractice Insurers Earned 47 Percent Profit during Last Five Years

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Patients for Fair Compensation Reports Harmed Patients Receive Only 26 % of Premiums

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...we need to replace our combative medical tort system with one that compensates all harmed patients instead of just a select few.

Georgia’s medical malpractice carriers earned an average of 47 percent profit during the last five years while patients harmed by physicians were compensated with 26 percent of premiums paid by doctors, according to a report from the actuarial Towers Watson.

Nationally, malpractice carriers averaged a profit of 31 percent, according to Towers Watson – 16 percent less than Georgia’s malpractice insurers.

Meanwhile, patients received very little of the malpractice premiums doctors pay into the system.

“Our medical malpractice system is so inefficient that it prevents most patients who are truly harmed from getting any compensation,” said Richard L. Jackson, chairman of Patients for Fair Compensation. “And those lucky enough to access our broken legal system get just a fraction of physicians’ malpractice premiums as compensation. Most is absorbed in administrative costs, legal fees, court costs and insurance profits.

“This really goes to show we need to replace our combative medical tort system with one that compensates all harmed patients instead of just a select few,” Jackson said. “Litigation costs bar too many from access to justice. You could not develop a more inefficient model to pay patients that are medically harmed.”

Patients for Fair Compensation is proposing a replacement of the current medical malpractice system with a no-fault, administrative system that compensates all patients who are found to be truly harmed. It would create a panel of experts to hear cases and determine if compensation should be awarded – and amounts certainly not less than if a patient had their day in court under the current system.

The Towers Watson report showed Georgia’s malpractice carriers earned a 47 percent profit in the past five years in the state compared to workers compensation providers who earned 7 percent in the state during the same period.

The Medical Association of Georgia is considering a proposal this week to evaluate the Patients Compensation System at its annual meeting in Savannah as a replacement for Georgia’s current medical malpractice system.

To read the Towers-Watson report, click here: http://www.patientsforfaircompensation.org/media/24598/122111.towers_watson._jh_mpl_wc_profit_margin__final_.2006-2010.elements_ga_fl_us.pdf

To learn more information about Patients for Fair Compensation and the Patients’ Compensation System policy solution, please visit http://www.patientsforfaircompensation.org.

ABOUT PATIENTS FOR FAIR COMPENSATION
Patients for Fair Compensation is a 501(c) 4 organization dedicated to educating and proposing policy solutions to ensure access to real justice for injured patients by eliminating up to $650 billion per year nationally of unnecessary costs due to defensive medicine.

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