Malpractice Litigation

 
 
 
 
The purpose of this study wa explore the issues underlying the phenomenon of litigation involving health care providers with a view toward recommending solutions that will lead to a reduction in the frequency of litigation while preserving the essential rights of all particles involved in such issues. It was found that an increase in medical malpractice litigation occurred over the past 10 years and that the principal cause of this increase was an inadequate legal structure for medical malpractice. It was found further that an increase in professional provider-third-party payer litigation occurred over the past 10 years, and that the primary reason for this increase was the transfer of the ultimate responsibility for the determination of medical need from professional health providers to health plan administrators. Similarly, it was found that an increase in patient-managed care organization litigation occurred over the past 10 years, and that the primary reasons for this increase was the transfer of the ultimate responsibility for the determination of medical need from professional health providers to health plan administrators. It was found also that an increase in patient dissatisfaction likely occurred over the past 10 years (44.2 percent of the total sample indicated that an increase in patient dissatisfaction occurred and that this change was associated with the increase in patient-managed care organization litigation.

One finding that stands out on the bas


     
 
 
 
    

 

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managed care begin to surpass overall compensation in the fee-for-service environment. In addition, many younger physicians are now seeking predictable working hours and a less medicine-obsessed lifestyle. As a result of such financial and personal incentives, more and more physicians are opting for salaried or de facto salaried positions a shift that holds many strategic implications for hospital administrators. This trend enhances the opportunities for Employers Health Insurance Company to provide comprehensive managed care funding (Blumenthal, 1996). Managed care is evolving within the context of sweeping reimbursement changes that promise to shift the emphasis of governmental and third-party payers away from procedure-oriented and invasive care and back to primary care. Resource-based relative value scale (RBRVS) compensation procedures applied to Medicare payments are a driving force for physician-hospital affiliations (Hagland, 1991). RBRVS is explained later in this discussion. RBRVS is an extension of the relative value scale (RVS) concept. The RVS is an index of physician services that assigns values to individual services relative to other services. Such scales generally are based on historical charges (charge-bas

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