Author
Dr. Marlene Smith
University of Colorado Denver
Objective
Explore claim payment amounts for medical malpractice lawsuits and identify factors that appear to influence the amount of the payment using descriptive statistics and data visualizations.
Background
According to a recent study published in the US News and World Report the cost of medical malpractice in the United States is $55.6 billion a year, which is 2.4 percent of annual health-care spending. Another 2011 study published in the New England Journal of Medicine revealed that annually, during the period 1991 to 2005, 7.4% of all physicians licensed in the US had a malpractice claim. These staggering numbers not only contribute to the high cost of health care, but the size of successful malpractice claims also contributes to high premiums for medical malpractice insurance.
An insurance company wants to develop a better understanding of its claims paid out for medical malpractice lawsuits. Its records show claim payment amounts, as well as information about the presiding physician and the claimant for a number of recently adjudicated or settled lawsuits.
The Task
Using descriptive statistics and graphical displays, explore claim payment amounts, and identify factors that appear to influence the amount of the payment.