Session: Analysis of Recent Government Policies and Managerial Strategies Pertaining to Medical Malpractice
Room: Phillips 101
Time: Tue 13:15-14:45

Presenter: Benjamin Ho (Cornell University. )

Discussant: Christine Durrance (University of North Carolina, Chapel Hill)

Abstract

Apologies made by physicians for adverse medical events have been identified as a mitigating factor in whether patients decide to litigate. However, doctors are socialized to avoid apologies because apologies admit guilt and invite lawsuits. An "Apology Law," which specifies that a physician's apology is inadmissible in court, is written to encourage patient-physician communication. Building on a simple model, we examine whether apology laws at the state-level have an impact on malpractice lawsuits and settlements. Using a difference-in-differences estimation, we find that state-level apology laws could expedite the settlement process and increase the number of settlements by 15% within 3 to 5 years of adopting the laws. Using individual level data, we also find that apology laws have the greatest reduction in average payment size and the settlement time on cases with more severe patient outcomes.

Ben Ho's research links economic methods with insights from sociology and psychology to analyze social institutions. His research today is focused on how behavioral economics can inform the policy debate on climate change, and how social factors like identity and social networks influence our consumption decisions. His has also worked on an analysis of how apologies maintain relationships, and the role apologies play in medical malpractice lawsuits. He is a faculty fellow with the Cornell Institute for Social Sciences Project on Judgment and Decision Making, and an affiliate with Cornell’s Center for a Sustainable Future. Ho was the lead economist for energy and transportation at the White House Council of Economic Advisers. He received his PhD in economics from Stanford Graduate School of Business, and holds master's degrees in education and political science from Stanford and electrical engineering/computer science from MIT, as well as bachelor's degrees from MIT.

Key Terms

Medical Malpractice, Apology, Tort Reform

Authors:

Benjamin Ho (Cornell University) and Elaine Liu (University of Houston)