Economics of Healthcare A Brief Introduction

This chapter covers the medical malpractice system: how it works, what its goals are, and how it influences provider behavior. The chapter begins by defining key terminology in tort law and explaining the process by which a medical malpractice case is brought and resolved, as well as the goals that this system is trying to achieve. Then discussion turns to how this system creates incentive for actions that run counter to its goals and the problems that are likely to arise, along with some empirical evidence of the existence of said problems.