Medical Liability Reform

Recent research shows the average American family pays an additional $1,700 to $2,000 per year in health care costs simply to cover the costs of defensive medicine or medical services that are not expected to benefit the patient but are ordered to minimize the risk of a subsequent lawsuit. SCHA supports meaningful medical malpractice reform that discourages the filing of frivolous suits against health care providers by instituting non-binding arbitration for medical malpractice claims with the provision of a “loser pays” rule. This rule would apply to parties that reject the arbitrator’s decision and proceed with litigation.

The PPACA provides $50 million in appropriated funds for medical liability demonstrations. The demonstration project would allow states to develop, implement, and evaluate alternatives to tort litigation. SCHA strongly supports our state's participating in this demonstration project and taking an important step toward reducing the cost of defensive medicine.