Tort Tutorial: What Physicians Need to Know
Part One: Michigan's Practice Environment Before Tort Reform
Thursday, September 19, 2024
This series will explore Michigan's tort reforms and professional liability laws, which have played a crucial role in maintaining a stable practice environment for physicians across the state. With looming threats of legislative changes, it's vital for today’s physicians—many of whom were not practicing during the last reforms—to understand the potential destabilizing impact on patient care and the workforce. As Michigan faces an existing physician shortage, these discussions will serve as both an education and a call to action to defend the laws that protect the future of healthcare in the state.
Before Michigan enacted comprehensive tort reform legislation in the 1980s and 1990s, physicians faced an overwhelming number of medical malpractice lawsuits and escalating malpractice premiums, contributing to a growing medical liability crisis. Patients could easily file medical malpractice claims, forcing physicians to practice "defensive medicine"—ordering unnecessary tests and treatments to protect themselves from potential liability and excessive jury awards. This environment not only altered the way physicians practiced but also contributed to rising healthcare costs.
The pre-reform legal landscape in Michigan had far-reaching consequences, including a significant physician shortage, as many left the state due to the burdensome liability risks and soaring malpractice insurance premiums. Defensive medicine further inflated healthcare costs, adding an estimated 10 to 20 percent to expenses nationwide. Tort reform was a critical intervention to stabilize Michigan's healthcare system, curb unnecessary costs, and retain physicians.