One strategy for reducing operational costs is cutting salaries of doctors and nurses. Newer, younger, and less experienced practitioners are being brought on board in many practices, which can increase the risk of negative occurrences. As mishaps and errors increase, more people file malpractice lawsuits. This can quickly become a vicious cycle of lowering income, bringing on less experienced professionals, watching risk increase, and spending more money for protection against malpractice.
With mounting insurance costs and legal fees, we also see more experienced doctors retiring well before traditional retirement years. One doctor in Kansas City, Missouri had been practicing for 25 years as an OB/GYN. He loved his work and the new lives he brought into the world. After dedicating his entire career in one direction, he was forced to stop his area of practice due to high risk, costly insurance, and legal fees. Going into general practice, he lasted one year. Disgruntled and frustrated, he bowed out and retired.
High legal costs are contributing to a loss of control over patient care provision, as well as adding mounds of clerical work, increasing the need for more office help. Unfortunately, there are clinics in the United States that are turning away lower income patients, choosing to see only a those with money.
Keep in mind that the greater the area of specialty and the fields in most demand, the higher legal costs are going to be. For instance, doctors and nurses practicing in cardiology, neurosurgery, geriatrics, and oncology are in high demand, and the demand is growing. A higher patient base means there is more potential for things to go wrong, and thus the greater need for insurance. Specialists also need big coverage. After all, when a doctor is performing brain surgery, the risk and results of something going wrong are greater than for a doctor suturing a wound.
On top of these factors, some patients simply look for ways of taking advantage of the system without giving any thought to the impact on others. If, for example, a person gets an infection after surgery, a malpractice lawsuit might be filed. If, upon reviewing the facts, the court deems the surgeon innocent since the patient did not complete follow-up care as required, the doctor is in the clear. But even though the surgeon did not have to pay damages, significant legal fees were still paid to go through the lawsuit process.
These factors and changes directly affect the type and quality of healthcare the American people receive. Rather than skimp on caring for our people, we need to address ways in which legal costs can be brought back under control.
Richard A. Hall is founder and President/CEO of LexTech, Inc., a legal information consulting company. Mr. Hall has a unique breadth of experience which has enabled him to meld technology and sophisticated statistical analysis to produce a technology driven analytical model of the practice of law. As a busy civil trial attorney, he was responsible for the design and implementation of a LAN based litigation database and fully automated document production system for a mid-sized civil defense firm. He developed a task based billing model built on extensive statistical analysis of hundreds of litigated civil matters. In 1994, Mr. Hall invented linguistic modeling software which automatically reads, applies budget codes, budget codes and analyzes legal bill content. He also served as California Director and lecturer for a nationwide bar review. Mr. Hall continues to practice law and perform pro bono services for several Northern California judicial districts.
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