Types of Compensation for Medical Malpractice

Compensation for medical malpractice is based on a patient’s damages.  There may also be damages to the patient’s family which can be compensated as well.  While there are different kinds of damages in every medical malpractice case, all damages are given a monetary value in determining the award.  Some damages have a direct monetary value, like lost wages, but other damages are more difficult to value with a dollar amount like pain and suffering or loss of companionship.  The different types of damages are broken down into three broad categories below.

Direct Damages

Damages that have their own monetary value.

• Lost wages
• Medical bills
• Replacement services for cleaning, cooking, or home maintenance

Indirect Damages:

Indirect damages include things like loss of companionship, loss of enjoyment, and pain and suffering.  Indirect damages are things which we do not normally give a monetary value.  How much is your spouse’s companionship worth?  How much value do you place on a person’s pain?  Usually the answer would be that no amount of money can replace your spouse, and no amount of money could cure a loved one’s pain.  The jury in a medical malpractice suit will be given the task of placing a monetary value on just those types of damages.  Indirect damages can also include future medical care, future lost wages, and future loss of enjoyment.

Punitive Damages:

Punitive damages are considered a punishment for a health care provider who knowingly chooses to not follow the proper standard of care.  Proving that a provider knowingly chose to disregard standard procedures of care is a very difficult task. Punitive damages are supposed to make the health care providers use more caution in the future. Punitive damages may also make a hospital or clinic demand more accountability for their employees, or may make them aware of policies that are not working. Whether punitive damages are actually effective toward this goal is a much-debated topic among health care provides, attorneys, and insurance companies.

Malpractice Insurance Claims:

As insurance rates to cover malpractice claims have risen in recent years, states have tried to limit the amount of damages awarded in malpractice cases.  Many states have passed legislation which place caps on damages, and there is a lobbying effort to have national caps on medical malpractice damages as well. Some states do not allow punitive damages unless there is evidence of gross negligence.  Indirect damages are also likely to be capped because there no monetary value is enough to cover the loss of a loved one.  A good attorney can help define the local laws and limits in your area.

Caps on Malpractice Damages

Malpractice law suits have both economic and noneconomic damages. Economic damages include loss of wages and the amount of expenses occured as the result of the injury, including medical bills. Non economic damages include compensation for pain and suffering from the injury. There are legal limits of caps on the amount of compensation that will be paid for Medical Malpractice Lawsuits. These laws very by state, and the caps on these damages can be viewed here documented by American Bar Assocation: Damage Caps by State.