Role of Medical Malpractice Insurance

In the medical world, there have been cases and stories in which patients have come out of surgery with some operating tools still in their bodies. In other cases, patients are administered with wrong drugs or diagnosed with wrong ailments. These instances of medical malpractice have led to the loss of so many lives. As a doctor or physician, this would be the reason why medical malpractice insurance is so important to your career.

Under the law of the United States, if a patient is injured in the course of treatment by a professional medical practitioner, he or she has the right to sue the institution for the act of malpractice. This kind of law varies slightly from state to state. However, the fact that the patient needs to be compensated and the error corrected, is standard in all the laws. This insurance policy is popularly undertaken by the medical institutions and health care providers as they are always at risk of having themselves sued by the patients in the case of the slightest act of malpractice.

Under a medical malpractice insurance policy, the insurer will be responsible for carrying out an investigation on the claim that has been reported. This enables the insurance firm determine the financial value to compensate the claimant. These premium rates differ from one state to the other and also the size of the institution. The more the patients that are treated in the facility, the higher the risk of a malpractice occurring, which may play a part in higher premium rates.

Medical malpractice premiums are also determined by the practice that the medical professional specializes in. When it comes to obstetrics and internal medicine, the premiums are likely to be highest of all the practices. This is owing to the fact that the procedures carried out in these institutions are highly delicate and slight miscalculations could result in death or permanent damage of internal organs.

A medical malpractice insurance policy can be costly and a bit on the higher side for some health institutions and even individuals to afford. In accordance to this, the government initiated some tort reforms so as to increase the availability of the policy and also make it more affordable. These reforms were put in place with the main aim of reducing the malpractice claims that were beginning to be too many. The reforms also aim at reducing the size of payments made as compensation. In the long run, these reforms will hopefully reduce the general cost of medical care.