Report: Record number of new malpractice claims in Missouri

The report logged 2,425 newly reported claims – the highest number recorded with the Missouri Department of Insurance, Financial Institutions and Professional Registration, which estimates that 15 percent to 20 percent of all medical malpractice claims are not reported.

The timing of the 2005 claims suggests that higher number is related to tort reform legislation that took effect Aug. 28, 2005.

Most claims appear to have been filed before that date for eligibility for the old noneconomic damages cap of $579,000 with annual adjustments for inflation. The new cap is $350,000 with no inflation adjustments.

Reform legislation also will boost the department’s oversight of surplus-lines insurers and self-insured entities, which will be required to report claims data in the same way as other medical malpractice insurers.

“These reforms will give the department better tools to monitor the stability of the medical malpractice insurance market in Missouri,” said Dale Finke, director of the Missouri DIFP, in a news release. “In the coming years, we will learn more about the effects of these reforms. We believe that these changes will hold down escalating medical malpractice premiums in Missouri, encourage more health care professionals to practice in our state and improve access to health care for Missouri’s consumers.”

Other highlights of the 2005 Medical Malpractice Report:

• The average award per paid claim increased slightly in 2005 to $253,304, following sharp increases in the past three years with average payments totaling $207,440 in 2002, $211,446 in 2003 and $252,043 in 2004. The average award paid per claim by physicians and surgeons, excluding other practitioners such as dentists, nurses, and clinics and hospitals, increased from $286,885 in 2004 to $300,931 in 2005.

• The most prevalent of alleged medical errors leading to a malpractice award were error/improper performance (46.9 percent), failure to treat (21.1 percent), delay in performance (4.4 percent), improper/illegal behavior (1.9 percent), communication and supervision (1.3 percent), unnecessary procedure/treatment (0.4 percent) and continuity of care (0.4 percent).

• After increasing for three consecutive years, the number of closed claims reported declined from 1,844 to 1,699. Claims closed with payment declined from 523 to 478 in 2005. For physicians and surgeons, excluding other practitioners such as dentists, nurses, and clinics and hospitals, closed claims declined from 898 to 822 in 2005.