MDCALA

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MARYLAND CITIZENS AGAINST LAWSUIT ABUSE
626C Admiral Drive P.O. Box 123 Annapolis, MD 21401 1-888-321-8480 mdcala@gmail.com	FAST FACTS Cost to Consumers The U.S. tort system costs every man, woman and child in the U.S. a yearly a “tort tax” of $880—that’s $3,520 for a family of four! —Tillinghast-Towers Perrin. 2006 Update on U.S. Tort Cost Trends (New York, NY, 2002) American tort litigation is costing the nation over 2% of gross domestic product annually. —Tillinghast-Towers Perrin. 2006 Update on U.S. Tort Cost Trends (New York, NY, 2002) A clogged court system means that on average, successful litigation claimants must wait 1,825 days for compensation after their injury takes place. —Subcommittee on Commercial and Administrative Law before the House Judiciary Committee, testimony presented by Physicians Insurance Association, June 12, 2002 Seventy-nine percent of Americans believe personal injury lawyer advertising encourages people to sue even if they haven’t been injured. —Sick of Lawsuits National Survey, Conducted by Public Opinion Strategies, August 16-18, 2005 Cost to Our Children Fear of litigation has schools from Massachusetts to California banning children from playing games like tag at school recess. “No running” signs have even been posted at school playgrounds in Broward County, Florida. —Columbus Dispatch, January 24, 2007 A MDCALA survey of Maryland public school principals found that 45% spend 5-15 hours each week dealing with litigation-related issues. In addition, 30% of the principals say that volunteerism has decreased because of the threat of lawsuits. Girl Scouts in the metro Detroit area must sell 36,000 boxes of cookies each year just to pay for liability insurance. —The Detroit Free Press, December 4, 1997 Cost to Our Health Care System Lost Health Care Professionals and Services Maryland doctors are facing a 55% proposed increase in medical liability insurance in 2005, due to increases in malpractice litigation and the size of jury awards. —Maryland State Medical Society, August 2004 The Maryland State Medical Society (MedChi) reports 44 confirmed cases in 2004 of Maryland physicians in various specialties who have already closed their practices or stopped offering a key service like obstetrics due the dramatic increases in medical liability insurance premiums. —Testimony of Dr. Mark Seigel, President of MedChi before Maryland Insurance Administration, August 18, 2004 According to the Maryland State Medical Society, for the first time ever, no graduates of the University of Maryland School of Medicine chose obstetrical residencies in 2003 and the program had difficulty filling its OB training slots. Maryland is only one state facing a loss of medical professionals. Increases in the number of medical malpractice suits and the size of jury awards are forcing physicians across the country to retire early, relocate or give up performing high-risk medical procedures. According the American Medical Association (AMA), there are now 17 states experiencing a full-blown medical liability crisis. The AMA lists Maryland as a state “seeing warning signs.” —America’s Medical Liability Crisis: A National View, AMA website, (ama-assn.org), December 20, 2006 A survey by the University of South Florida’s College of Medicine found malpractice concerns may deter medical students from pursuing careers in obstetrics and gynecology. —United Press International, August 29, 2006 Nationwide, 45% percent of hospitals reported that the professional liability crisis has resulted in the loss of physicians and/or reduced coverage in emergency departments. —American Hospital Association, Professional Liability Insurance Survey 2003 Increased Cost of Health Care PricewaterhouseCoopers calculates that medical liability concerns increase annual health care spending by $124 billion in 2006 dollars. The additional cost of liability-based health care costs adds 3.4 million Americans to the rolls of the uninsured. —“Jackpot Justice: The True Cost of America’s Tort System,” Pacific Research Institute, March 27, 2007 An estimated $50 billion per year is spent on unnecessary test procedures designed primarily to guard doctors and hospitals against malpractice claims. In a 2002 survey, 79% of physicians said that they had ordered more tests than they would based on professional judgment of what is medically needed because of their fear of the excesses of the litigation system. —Fear of Litigation Study, Conduced by Harris Interactive, Final Report, April 11, 2002 Bad Medicine or Lawsuit Abuse? Nationally, nearly 70% of medical liability claims in 2002 were closed without payment to the plaintiff. Of the 7% of claims that went to jury verdict, the defendant (medical professional) won 82.4% of the time. —The Physician’s Insurers Association of America’s Claim Trend Analysis, 2002 Successful plaintiffs in medical malpractice cases typically receive only 38% of total litigation costs, according to a 2003 study Employment Policy Foundation. Maryland lawyers typical received 40% of awards. —Maryland State Medical Society, August 2004 Cost to Individuals and Businesses Small businesses typically spend about $5,000 to settle a legal dispute—about 10 percent of a small business owner’s average salary. —“Use of Lawyers” National Federation of Independent Business National Small Business Poll, Vol. 5, Issue 2, 2005 In a recent survey from the National Federation of Independent Business (NFIB), liability costs rank second only to healthcare costs as problems facing small businesses. Four years ago, liability costs ranked No. 13 on their problem list. The U.S. Chamber of Commerce estimates that U.S. small businesses spend $88 billion per year on litigation costs. —Houston Business Journal, December 18, 2006 If your business is sued, the stakes can increase dramaticallyŃtens of thousands of dollars and years to resolve. Two-thirds of Maryland small businesses fear they will be sued according to a MDCALA study. Resources that small business owners and managers would normally put towards expanding business and creating jobs are being held back to cover the cost of possible lawsuits.

MARYLAND CITIZENS AGAINST LAWSUIT ABUSE

626C Admiral Drive
P.O. Box 123
Annapolis, MD 21401
1-888-321-8480
mdcala@gmail.com

FAST FACTS

Cost to Consumers

The U.S. tort system costs every man, woman and child in the U.S. a yearly a “tort tax” of $880—that’s $3,520 for a family of four!
—Tillinghast-Towers Perrin. 2006 Update on U.S. Tort Cost Trends (New York, NY, 2002)
American tort litigation is costing the nation over 2% of gross domestic product annually.
—Tillinghast-Towers Perrin. 2006 Update on U.S. Tort Cost Trends (New York, NY, 2002)
A clogged court system means that on average, successful litigation claimants must wait 1,825 days for compensation after their injury takes place.
—Subcommittee on Commercial and Administrative Law before the House Judiciary Committee, testimony presented by Physicians Insurance Association, June 12, 2002
Seventy-nine percent of Americans believe personal injury lawyer advertising encourages people to sue even if they haven’t been injured.
—Sick of Lawsuits National Survey, Conducted by Public Opinion Strategies, August 16-18, 2005

Cost to Our Children

Fear of litigation has schools from Massachusetts to California banning children from playing games like tag at school recess. “No running” signs have even been posted at school playgrounds in Broward County, Florida.
—Columbus Dispatch, January 24, 2007
A MDCALA survey of Maryland public school principals found that 45% spend 5-15 hours each week dealing with litigation-related issues. In addition, 30% of the principals say that volunteerism has decreased because of the threat of lawsuits.
Girl Scouts in the metro Detroit area must sell 36,000 boxes of cookies each year just to pay for liability insurance.
—The Detroit Free Press, December 4, 1997

Cost to Our Health Care System
Lost Health Care Professionals and Services

Maryland doctors are facing a 55% proposed increase in medical liability insurance in 2005, due to increases in malpractice litigation and the size of jury awards.
—Maryland State Medical Society, August 2004
The Maryland State Medical Society (MedChi) reports 44 confirmed cases in 2004 of Maryland physicians in various specialties who have already closed their practices or stopped offering a key service like obstetrics due the dramatic increases in medical liability insurance premiums.
—Testimony of Dr. Mark Seigel, President of MedChi before Maryland Insurance Administration, August 18, 2004
According to the Maryland State Medical Society, for the first time ever, no graduates of the University of Maryland School of Medicine chose obstetrical residencies in 2003 and the program had difficulty filling its OB training slots.
Maryland is only one state facing a loss of medical professionals. Increases in the number of medical malpractice suits and the size of jury awards are forcing physicians across the country to retire early, relocate or give up performing high-risk medical procedures. According the American Medical Association (AMA), there are now 17 states experiencing a full-blown medical liability crisis. The AMA lists Maryland as a state “seeing warning signs.”
—America’s Medical Liability Crisis: A National View, AMA website, (ama-assn.org), December 20, 2006
A survey by the University of South Florida’s College of Medicine found malpractice concerns may deter medical students from pursuing careers in obstetrics and gynecology.
—United Press International, August 29, 2006
Nationwide, 45% percent of hospitals reported that the professional liability crisis has resulted in the loss of physicians and/or reduced coverage in emergency departments.
—American Hospital Association, Professional Liability Insurance Survey 2003

Increased Cost of Health Care

PricewaterhouseCoopers calculates that medical liability concerns increase annual health care spending by $124 billion in 2006 dollars. The additional cost of liability-based health care costs adds 3.4 million Americans to the rolls of the uninsured.
—“Jackpot Justice: The True Cost of America’s Tort System,” Pacific Research Institute, March 27, 2007
An estimated $50 billion per year is spent on unnecessary test procedures designed primarily to guard doctors and hospitals against malpractice claims. In a 2002 survey, 79% of physicians said that they had ordered more tests than they would based on professional judgment of what is medically needed because of their fear of the excesses of the litigation system.
—Fear of Litigation Study, Conduced by Harris Interactive, Final Report, April 11, 2002

Bad Medicine or Lawsuit Abuse?

Nationally, nearly 70% of medical liability claims in 2002 were closed without payment to the plaintiff. Of the 7% of claims that went to jury verdict, the defendant (medical professional) won 82.4% of the time.
—The Physician’s Insurers Association of America’s Claim Trend Analysis, 2002
Successful plaintiffs in medical malpractice cases typically receive only 38% of total litigation costs, according to a 2003 study Employment Policy Foundation. Maryland lawyers typical received 40% of awards.
—Maryland State Medical Society, August 2004

Cost to Individuals and Businesses

Small businesses typically spend about $5,000 to settle a legal dispute—about 10 percent of a small business owner’s average salary.
—“Use of Lawyers” National Federation of Independent Business National Small Business Poll, Vol. 5, Issue 2, 2005
In a recent survey from the National Federation of Independent Business (NFIB), liability costs rank second only to healthcare costs as problems facing small businesses. Four years ago, liability costs ranked No. 13 on their problem list. The U.S. Chamber of Commerce estimates that U.S. small businesses spend $88 billion per year on litigation costs.
—Houston Business Journal, December 18, 2006
If your business is sued, the stakes can increase dramaticallyŃtens of thousands of dollars and years to resolve. Two-thirds of Maryland small businesses fear they will be sued according to a MDCALA study. Resources that small business owners and managers would normally put towards expanding business and creating jobs are being held back to cover the cost of possible lawsuits.