The Problems with Punitive Damages in Lawsuits Against Managed-Care Organizations

Published in: The New England Journal of Medicine, v. 342, no. 4, Jan. 27, 2000, p. 280-284

Posted on RAND.org on January 01, 2000

by David M. Studdert, Troyen A. Brennan

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A crisis in the litigation of cases involving managed care, should it come, will be ugly and costly. It will be exacerbated by a system of tort litigation that is in many ways dysfunctional. Two outcomes are certain: millions of dollars will go toward attorneys' fees, and these costs will need to be paid, at least in part, out of health insurance premiums. Legislators should consider these issues as they weigh bills that would promote litigation.

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