Because It Works

It's been a while since we've done an article on tort reform and the need for it, insofar as the Medical Industry is concerned - but, now, we get to fix that particular mishap. Five years ago, in 2003, the Great State of Texas passed Proposition 12, which capped damages in Medical Malpractice lawsuits; and so, with 5 years now in our rearview mirrors, the Texas Medical Association has done a nice little piece on the many benefits that reform has provided to Texan Healthcare. Here's some of the highlights:

- "Charity care rendered by Texas hospitals rose 24 percent in the three years following the passage of Prop. 12."
- The number of Doctors in the state has been rising at higher-than-normal rates
- This Doctor growth is especially true for specialists, particularly those most affected by malpractice abuse, such as obstetricians and orthopedic surgeons.
- "Hospitals are upgrading equipment, expanding their emergency rooms, launching patient safety programs and expanding their level of charity care"
- "All major physician liability carriers in Texas have cut their rates since the passage of the reforms, most by double-digits. Texas physicians have seen their liability rates cut, on average, 24.3 percent"
- "Claims and lawsuits in most Texas counties have been cut in half"

So as you can see, this system has worked out well for everyone except, well, the trial lawyers who used to make millions on these lawsuits. On the other hand though:

- Hospitals are better able to care for the uninsured, and are able to afford better medical equipment to do it with.
- Doctors don't have to pay as much for malpractice insurance (and thus, can make more money).
- Patients now have an increasing number of Doctors from whom to seek treatment, and they don't have to have the financial burden of rising malpractice insurance costs passed on to them (since they are the consumers in this business).
- And, finally, taxpayers don't have to finance near as many of these bullshit lawsuits with their hard-earned cash.

In other words, everyone who matters, wins.

Seriously, how long will it take the rest of the country to figure this stuff out? If you want to make the American Healthcare system better, the way to do it is not Socialized Medicine (a.k.a Universal Healthcare); and there are 2 primary reasons for this. Number 1, it doesn't do anything to address the real problem, which is rising health insurance costs; and, number 2, it does absolutely nothing to improve the quality of the actual healthcare services being offered.

As demonstrated by Proposition 12 in Texas, Malpractice reform does, in fact, address both of these problems. By reducing the cost of Malpractice insurance and increasing the number of Doctors competing for patients, it reduces the fees Doctors will charge their patients for care; and by increasing the number of Doctors and freeing up hospital funds from fighting frivolous lawsuits, it increases the quality of the care being given to patients.

This is what Capitalism does people, and this is why it works! Competition breeds increases in quality and decreases in price; and, furthermore, when Doctors and Hospitals don't have to be looking over their shoulders every 2 seconds, worrying about potential lawsuits, they're more likely to give charity care - and this is why tort reform is crucial, because it so obviously has these positive effects on Health Care in the United States.

God, I feel like I'm just repeating myself over and over again - hell, if you already understand the basic principles of market economics you're probably screaming at me to finish this damn post already. But I think I'm going to say it one more time, just for emphasis: tort reform enables Capitalist forces to better enter the healthcare market, which is good, because Capitalism works!

Ok, there, I'm done now - kind of like some of Texas' healthcare industry's problems...