Georgia Medicaid Program Could Save $3.1 Billion with New Medical Liability Plan

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A new Patients for Fair Compensation report says a Patients' Compensation System would create savings for state

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Georgia taxpayers could save $3.1 billion over the next decade if the state replaced its current medical tort system with a no-fault model that resembles workers compensation, according to a new study by the healthcare economics firm, BioScience Valuation.

BioScience Valuation analyzed the proposed Patients for Fair Compensation plan for Georgia and found it would reduce the practice of defensive medicine, or when physicians order more tests than are medically necessary.

As a result, Georgia taxpayers would save $3.1 billion after a decade with the potential to be as high as $3.8 billion in costs to its Medicaid program.

“This is massive savings, something to be taken very seriously,” said Charles R. Evans, FACHE, vice chairman of Patients for Fair Compensation. “Certainly it should draw the attention of every state lawmaker grappling with fiscal uncertainty.”

The report by BioScience Valuation found that Georgia doctors would reduce the practice of defensive medicine by 30 to 70 percent with a change over to a Patients' Compensation System. It is expected such a system would create savings in all sectors of healthcare including other public sector health programs such as Medicare and in the private insurance marketplace.

Under a Patients’ Compensation System, a patient who was medically harmed could file a claim for review by a panel of experts. If that panel deemed the injury was “avoidable,” the claim would be forwarded to a Compensation Board to award compensation.

This would create a predictable model where patients are assured their cases would be heard. Injured patients would have access to justice. And unlike the current tort system, low-value claims would be heard. The system would provide more injured patients compensation. They would receive predictable settlements in much faster time. Doctors would know they wouldn’t be hauled into court for frivolous reasons.

For more information about the report from BioScience Valuation, go to:

To learn more information about Patients for Fair Compensation and the Patients’ Compensation System policy solution, please visit

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Susan L. Meyers
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