"Take two depositions and call me in the morning."
If doctors could prescribe litigation to improve human health,
every American would resemble an Olympian and reach age 110. Of
course, the opposite is true. As the free-market Manhattan Institute
discovered, the barrage of lawsuits battering the medical and
pharmaceutical industries is incredibly expensive. Even worse, it
shackles doctors, spooks researchers, and leaves patients sick or
dead.
Since 2003, the Manhattan Institute (which I am advising on a
book project) has examined what it calls "Trial Lawyers, Inc."
(triallawyersinc.com). Twice the size of Coca-Cola, the $40 billion
litigation industry is a hulking Goliath, not the plucky David it
fancies itself.
To gauge its impact, consider the 406 percent increase in
per-doctor malpractice insurance premiums between 1975 and 2003.
Simultaneously, medical-care inflation grew 525 percent, while Trial
Lawyers, Inc. turbocharged medical-malpractice expenses 2,108
percent, to $26.5 billion.
Insurers shield themselves from massive payouts by charging
doctors more for malpractice coverage. Average policies rose 18
percent in 2003 alone. That year, Chicago-area obstetricians watched
their premiums zoom 67 percent to $230,428.
Doctors, in turn, practice "defensive medicine" _ using extra
tests and referrals to prevent negligence claims. Thus, 74 percent
of doctors unnecessarily send patients to specialists. Conversely, a
Harris poll found that 43 percent of doctors do not prescribe drugs
embroiled in litigation for fear of getting sucked into lawsuits.
Litigants seem blithely unaware of underlying economic reality.
Covetous plaintiffs in one vaccine lawsuit sought $30 billion in
damages while the entire vaccine industry's annual revenues totaled
$6 billion.
All of this has helped hike health insurance annually by 10.9 to
13.9 percent between 2001 and 2005. Family coverage has risen 59
percent since 2000.
Unfortunately, Trail Lawyers, Inc.'s damage has metastasized from
our wallets to our well-being. Litigation's clinical side effects
are widespread and worsening.
_ Trial Lawyers, Inc. kicks the poor and minorities in the teeth.
Thanks to liability-insurance costs, Methodist Hospital in
low-income south Philadelphia stopped delivering babies in 2002.
Facing a $2 million malpractice premium, Manhattan's Elizabeth Seton
Childbearing Center closed in 2003 _ bad news for the 30 percent of
its patients on Medicaid.
_ Among the 13 hospitals in Palm Beach County, Fla., five have no
emergency-room neurologists. Some seizure patients and accident
victims have had to travel more than 100 miles to Gainesville and
Tampa for treatment. Barbara Masterson, 53, suffered a stroke in
2004. Lawsuit-weary local neurologists refused to see her. While
hospital personnel scrambled for a neurosurgeon, Masterson died.
_ Less than a year after GlaxoSmithKline introduced LYMErix in
1999, lawyers attacked, claiming this adult Lyme-disease vaccine
caused arthritis. By 2002, Glaxo withdrew LYMErix. Previously-stable
Lyme-disease infections suddenly soared 40 percent.
_ A quarter of pregnant women once used Bendectin for morning
sickness. A lawyer-fueled frenzy over alleged birth defects prompted
some Bendectin users to abort their fetuses. Facing 2,000 suits, $18
million in claims, and $20 million in sales, Merrell Dow
Pharmaceuticals yanked Bendectin from U.S. pharmacies in 1983. No
evidence ever has linked defects to Bendectin, which still sells
abroad. Meanwhile, U.S. birth defects are flat, while
morning-sickness hospitalizations have doubled.
So, is there any cure for "litigitis?"
_ Since Texas capped non-economic damages at $250,000 in 2003,
malpractice suits have been halved, and five insurers have cut total
annual premiums by $50 million.
_ Common Good _ a Gotham-based non-profit launched by Philip K.
Howard, author of The Death of Common Sense _ advocates medical
courts in which specialized judges, often in non-jury trials, could
evaluate scientific evidence, which sometimes baffles jurors.
A Texas jury, for instance, blamed Vioxx for one user's fatal
heart attack, then invoiced Merck $253 million. Merck's scientific
defense seemed to flummox jurors.
"Whenever Merck was up there, it was like wah, wah, wah," said
juror John Ostrom in last Aug. 22's Wall Street Journal, parroting
Charlie Brown's teacher. "We didn't know what the heck they were
talking about."
Medical courts also would counteract some jurors' anti-defendant
bias. Left-wing litigator Ron Kuby alluded to this when he said,
"The Bronx civil jury is the greatest tool of wealth redistribution
since the Red Army."
Such reforms are needed _ Stat! Without them, Trial Lawyers, Inc.
will aggravate the splitting headache that is American medicine _
far beyond the reach of aspirin.
(New York commentator Deroy Murdock is a columnist with the
Scripps Howard News Service and a senior fellow with the Atlas
Economic Research Foundation in Arlington, Va.)
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