Courts, Scheduled Damages, and Medical Malpractice Insurance

Paola Bertoli, Veronica Grembi

Publikation: Working paperForskning

Resumé

We assess the impact of the introduction of schedules of non-economic damages (i.e. tiered caps systems) on the behavior of insurers operating in the medical liability market for hospitals while controlling the performance of the judicial system, measured as court backlog. Using a difference-in-differences strategy on Italian data, we find that the introduction of schedules increases the presence of insurers (i.e. medical liability market attractiveness) only in inefficient judicial districts. In the same way, court inefficiency is attractive to insurers for average values of schedules penetration of the market, with an increasing positive impact of inefficiency as the territorial coverage of schedules increases. Finally, no significant impact is registered on paid premiums. Our analysis sheds light on a complex set of elements affecting the decisions of insurers in malpractice markets. The analysis questions whether schedules of non-economic damages, as well as other limitations on compensations to medical malpractice victims, are an effective way to improve the payoff of health care providers.
OriginalsprogEngelsk
Udgivelses stedMilan
UdgiverUniversità Commerciale Luigi Bocconi
Antal sider40
DOI
StatusUdgivet - 2013
NavnBAFFI Center Research Paper
Nummer2013-145

Emneord

  • hedules of non-economic damages
  • Courts
  • Medical malpractice insurance
  • Difference-in-differencess

Citer dette

Bertoli, P., & Grembi, V. (2013). Courts, Scheduled Damages, and Medical Malpractice Insurance. Milan: Università Commerciale Luigi Bocconi. BAFFI Center Research Paper, Nr. 2013-145 https://doi.org/10.2139/ssrn.2367218
Bertoli, Paola ; Grembi, Veronica . / Courts, Scheduled Damages, and Medical Malpractice Insurance. Milan : Università Commerciale Luigi Bocconi, 2013. (BAFFI Center Research Paper; Nr. 2013-145).
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Bertoli, P & Grembi, V 2013 'Courts, Scheduled Damages, and Medical Malpractice Insurance' Università Commerciale Luigi Bocconi, Milan. https://doi.org/10.2139/ssrn.2367218

Courts, Scheduled Damages, and Medical Malpractice Insurance. / Bertoli, Paola; Grembi, Veronica .

Milan : Università Commerciale Luigi Bocconi, 2013.

Publikation: Working paperForskning

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AB - We assess the impact of the introduction of schedules of non-economic damages (i.e. tiered caps systems) on the behavior of insurers operating in the medical liability market for hospitals while controlling the performance of the judicial system, measured as court backlog. Using a difference-in-differences strategy on Italian data, we find that the introduction of schedules increases the presence of insurers (i.e. medical liability market attractiveness) only in inefficient judicial districts. In the same way, court inefficiency is attractive to insurers for average values of schedules penetration of the market, with an increasing positive impact of inefficiency as the territorial coverage of schedules increases. Finally, no significant impact is registered on paid premiums. Our analysis sheds light on a complex set of elements affecting the decisions of insurers in malpractice markets. The analysis questions whether schedules of non-economic damages, as well as other limitations on compensations to medical malpractice victims, are an effective way to improve the payoff of health care providers.

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Bertoli P, Grembi V. Courts, Scheduled Damages, and Medical Malpractice Insurance. Milan: Università Commerciale Luigi Bocconi. 2013. https://doi.org/10.2139/ssrn.2367218