The deterrent effect of tort law: Evidence from medical malpractice reform

Zenon Zabinski and Bernard S. Black

Journal of Health Economics, 2022, vol. 84, issue C

Abstract: We examine whether caps on noneconomic damages in medical malpractice cases affect in-hospital patient safety. We use Patient Safety Indicators – measures of adverse events – as proxies for safety. In difference-in-differences (“DiD”) analyses of five states that adopt caps during 2003–2005, we find that multiple measures of non-fatal patient safety events worsen after cap adoption relative to control states. DiD inference can be unreliable with a small number of treated units. We therefore develop a randomization inference-based test for inference with few treated units but multiple correlated outcomes and confirm the robustness of our results with this nonparametric approach. We also provide evidence that the decline in patient safety is unlikely to be driven by patient selection.

Keywords: Medical malpractice; Torts; Healthcare quality; Patient safety (search for similar items in EconPapers)
JEL-codes: I13 I18 K13 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:84:y:2022:i:c:s0167629622000571

DOI: 10.1016/j.jhealeco.2022.102638

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