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Tort Reform - June 2005
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Studies Examine Effect of Damage Caps on Physician Supply

States that cap non-economic damages in medical malpractice lawsuits have seen their supply of physicians increase more than states that do not impose such payment limits, according to a new study by the Agency for Healthcare Research and Quality (AHRQ) published in the online journal Health Affairs. In "Have State Caps on Malpractice Awards Increased The Supply of Physicians," AHRQ researchers examined physician supply in 49 states (excluding Alaska and the District of Columbia) from 1985 to 2000 and found that states with a non-economic damages cap in place had 2.2% more physicians per capita, while rural counties in those states with a cap had 3.2% more physicians per capita.

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