Free Republic

We estimate the extent of defensive medicine by physicians, embracing the no-liability counterfactual made possible by the structure of liability rules in the Military Heath System. Active-duty patients seeking treatment from military facilities cannot sue for harms resulting from negligent care, while protections are provided to dependents treated at military facilities and to all patients—active-duty or not—that receive care from civilian facilities. Drawing on this variation and exploiting exogenous shocks to care location choices stemming from base-hospital closures, we find suggestive evidence that liability immunity reduces inpatient spending with no measurable negative effect on patient outcomes.

I m not a lawyer basher but when it comes to tort reform and health care.... ...So far every time tort reform comes up in debate it manages to go away. That's a testament to the powerful and influential lobby of the trial lawyers. There's a huge amount of income potential every time someone steps into the doctors office, hospital emergency room or is scheduled for an operation. The only proof you need is to watch the number of television, radio, and print advertising offers for free legal assistance that pour out daily to the public. And lets be honest,...