In 2024, Florida ranked among the worst states for healthcare on metrics such as accessibility, cost, and outcomes for patients.[1] The current healthcare landscape in Florida is not only complicated for patients, but for healthcare providers as well. Physicians tend to struggle with staffing shortages, burnout, and the current landscape of practice conglomeration and takeovers. In addition, physicians must contend with a very litigious environment and high costs of medical malpractice insurance, or medical professional liability (MPL).
The MPL insurance rates in Florida are some of the most expensive nationwide. Florida is among the states most affected by malpractice cases, with some of the highest medical malpractice payouts. Data has shown that for decades Florida has consistently been one of the top three states for total number of medical malpractice cases filed and the total dollar amount paid out.[2] While this may be expected due to Florida’s size and population, Florida malpractice premiums are highest even when compared to other populous states, including New York, California, Texas, and Pennsylvania.[3]
Given these conditions, it is essential for physicians to understand the basic landscape of MPL going into the New Year, including the trends that affect the pricing of MPL rates.
Perhaps one of the largest concerns that physicians may have with regard to MPL is claim verdicts. Though the vast majority of claims continue to be settled outside of court, those that are brought before trial have the risk and increased likelihood of seeing a “nuclear” verdict – a verdict where the jury award exceeds $10 million. These awards are typically seen in lawsuits involving personal injury, wrongful death, or medical malpractice (get definition sentence and source). One positive with regard to medical practitioners is that cases that are brought before a jury are likely to favor physicians, and around 80-90% result in a defense verdict.[4]
However, the awarding of these so-called nuclear verdicts is expected to continue, and the number of verdicts of 10 million USD or higher is growing every year. In 2022, 2023, and 2024 YTD, nearly half of all jury awards were 10 million USD or more.[5] From 2015 to 2023, these large verdicts more than doubled, and in 2023 alone, over 2 billion USD were awarded in jury verdicts across the nation.[6]
Of these large verdicts in 2023, 8 were in Florida alone. From 2016 to 2024, 29 verdicts of $10+ million were awarded in Florida, for a total of more than 1 billion dollars.[7] The 2024 calendar year has already seen 4 large verdicts, ranging from 25 to 100 million USD in 4 different Florida counties.[8] [9] [10] [11]
While on the surface such large verdicts may appear to bring justice to victims and loved ones of medical malpractice, as much as 40% of indemnity can go to the plaintiffs’ attorneys, rather than the plaintiffs themselves.[12] These large jury verdicts are not only of concern for Florid physicians, but for the larger healthcare field, including patients. Nuclear verdicts can result in defensive medicine, wherein doctors conduct their treatments to avoid litigation, rather than basing treatment on the patients’ needs. Not only does this kind of approach potentially affect the quality of treatment for patients, but the cost of the healthcare they receive as well. Physicians taking extra steps or ordering unnecessary medical tests, as is often the case with defensive medicine, increases the overall cost of healthcare.[13]
As attention grabbing as these large jury awards are, it is important for physicians to keep in mind they are, on average, winning the same percentage of trials. Nonetheless, these nuclear verdicts destabilize malpractice insurance and can result in substantial increases in MPL premiums due to higher legal defense costs for carriers, including in states like Florida.[14]
Defensive medicine is one strategy to avoid lawsuits, but there are countless other ways physicians can reduce liability. Understanding claim trends can help physicians take steps to keep them out of the legal system. For example, if certain facilities are more prone to infections and/ or have higher levels of adverse outcomes, physicians may want to refer them elsewhere. The same goes for specialist referrals.
Going into 2025, Florida physicians should be aware of the MPL landscape. Even if physicians have had claims in the past, working with an experienced advisor can help them identify the issue(s) and ensure they are not overpaying for insurance based on an adverse event. Understanding the MPL environment in Florida can save physicians from lawsuits and save them money.
Contact Kendall Jung at Acadia Professional (located in South Florida) to avoid being the victim of a highly complicated Florida healthcare system. She can help ensure that you the best MPL risk management strategy and the lowest MPL insurance rates.
Sources:
[1] McCann, Adam. “Best & Worst States for Health Care.” WalletHub, 29 July 2024, wallethub.com/edu/states-with-best-health-care/23457.
[2] LaGrone, Katie. “Families Say It’s Time for Florida’s ‘Free Kill’ Law to Die; Data Shows They May Be Right.” ABC Action News Tampa Bay (WFTS), ABC Action News Tampa Bay (WFTS), 14 Sept. 2023, www.abcactionnews.com/news/state/families-say-its-time-for-fls-free-kill-law-to-die-data-shows-they-may-be-right.
[3] Kurzban, Jed, et al. “Neither Goose Nor Gander: Why Tort Reform Fails All.” Florida Bar Journal 98.5 (2024).
[4] Mazzolini, Chris. “The Medical Malpractice Landscape: What Physicians Need to Know.” MedicalEconomics, Medical Economics Journal, 4 Oct. 2024, www.medicaleconomics.com/view/the-medical-malpractice-landscape-what-physicians-need-to-know?seriesVid=5.
[5] Ibid.
[6] “Healthcare Liability Market Update.” HCL Market Update, MedPro Group, 2024, hclmarketupdate.com/.
[7] ibid
[8] Ortiz, Luli. “$100 Million Awarded in Palm Beach County’s Boy Botched Circumcision Case.” West Palm CW34, 28 Aug. 2024, cw34.com/news/local/100-million-awarded-in-palm-beach-countys-boy-botched-circumcision-case.
[9] Mora, Michael A. “Broward Jury Returns $31.9m Verdict against Cleveland Clinic Florida.” Daily Business Review, ALM, 12 Mar. 2024, www.law.com/dailybusinessreview/2024/03/12/broward-jury-returns-31-9m-verdict-against-cleveland-clinic-florida/?slreturn=20241227142456.
[10] Wunderlich, Emily, and Christopher O’Donnell. “Tampa Doctors Must Pay $30 Million after Woman, 23, Died from Untreated Ulcer.” Tampa Bay Times, Tampa Bay Times, 15 Feb. 2024, www.tampabay.com/news/health/2024/02/15/tampa-jury-awards-30m-parents-medical-malpractice-lawsuit/.
[11] O’Donnell, Christopher. “Jury Awards Woman $25m after HCA Citrus Hospital Delayed Reporting of Sexual Abuse.” Tampa Bay Times, 8 Nov. 2024, www.tampabay.com/news/health/2024/11/08/jury-awards-woman-25m-after-hca-citrus-hospital-delayed-reporting-sexual-abuse-2/.
[12] White, Robert. “Medical Malpractice Payouts Are Ballooning-and Insurers Are Warning It Will Cost Patients.” Fortune, Fortune, 2 July 2024, fortune.com/2024/07/02/medical-malpractice-payouts-ballooning-insurers-warning-cost-patients-health-personal-finance/.
[13] ibid
[14] Shryock, Todd. “What Will Happen to Malpractice Rates in 2025?” MedicalEconomics, Medical Economics Journal, 11 Dec. 2024, www.medicaleconomics.com/view/what-will-happen-to-malpractice-rates-in-2025-.