Liability claims and costs before and after implementation of a medical error disclosure program.
BACKGROUND
Since 2001, the University of Michigan Health System (UMHS) has fully disclosed and offered compensation to patients for medical errors.


OBJECTIVE
To compare liability claims and costs before and after implementation of the UMHS disclosure-with-offer program.


METHODS
Retrospective before-after analysis from 1995 to 2007.


METHODS
Public academic medical center and health system.


METHODS
Inpatients and outpatients involved in claims made to UMHS.


METHODS
Number of new claims for compensation, number of claims compensated, time to claim resolution, and claims-related costs.


RESULTS
After full implementation of a disclosure-with-offer program, the average monthly rate of new claims decreased from 7.03 to 4.52 per 100,000 patient encounters (rate ratio [RR], 0.64 [95% CI, 0.44 to 0.95]). The average monthly rate of lawsuits decreased from 2.13 to 0.75 per 100,000 patient encounters (RR, 0.35 [CI, 0.22 to 0.58]). Median time from claim reporting to resolution decreased from 1.36 to 0.95 years. Average monthly cost rates decreased for total liability (RR, 0.41 [CI, 0.26 to 0.66]), patient compensation (RR, 0.41 [CI, 0.26 to 0.67]), and non-compensation-related legal costs (RR, 0.39 [CI, 0.22 to 0.67]).


CONCLUSIONS
The study design cannot establish causality. Malpractice claims generally declined in Michigan during the latter part of the study period. The findings might not apply to other health systems, given that UMHS has a closed staff model covered by a captive insurance company and often assumes legal responsibility.


CONCLUSIONS
The UMHS implemented a program of full disclosure of medical errors with offers of compensation without increasing its total claims and liability costs.


BACKGROUND
Blue Cross Blue Shield of Michigan Foundation.
Kachalia
Allen
A
Brigham and Women's Hospital, Boston, Massachusetts 02115, USA. akachalia@partners.org
Kaufman
Samuel R
SR
Boothman
Richard
R
Anderson
Susan
S
Welch
Kathleen
K
Saint
Sanjay
S
Rogers
Mary A M
MA
D000046:Academic Medical Centers / Q000191:economics / Q000458:organization & administration; D035881:Compensation and Redress; D003365:Costs and Cost Analysis; D030881:Disclosure; D006801:Humans; D007345:Insurance Claim Review / Q000706:statistics & numerical data; D016365:Liability, Legal / Q000191:economics*; D019300:Medical Errors / Q000191:economics* / Q000331:legislation & jurisprudence; D008824:Michigan; D016134:Organizational Policy; D015397:Program Evaluation; D012189:Retrospective Studies