Excessive Medical Malpractice Verdicts: How Healthcare Providers Can Protect Themselves

As verdicts in medical malpractice lawsuits reach historic highs, health systems and physicians’ offices across the U.S. are feeling the heat.

In 2024, healthcare providers witnessed some of the highest medical malpractice verdicts in history. In April, a Philadelphia jury awarded $182.7 million in a case involving a child born with brain injuries at a major Philadelphia health system. A few weeks prior, $120 million was awarded to a family in a medical malpractice case related to a cesarean section performed at a hospital in Michigan. In California, a $30 million verdict was reached against a nursing home in January after a resident passed away.

Philadelphia, in particular, is facing surging medical malpractice lawsuits after a recent rule change enacted by the Pennsylvania Supreme Court. In 2023, the court changed the “venue rule,” a law that required malpractice cases to be filed in the same county where the alleged medical harm occurred. This rule change has created an easier pathway for plaintiffs to file more medical malpractice lawsuits in Philadelphia, a county known for having juries that produce positive outcomes for patients in medical malpractice cases.

The “venue rule” change has already caused a significant spike in lawsuits filed in the city. In 2023, medical malpractice cases filed in Philadelphia County hit a 15-year high, doubling the prior year’s total. Of those cases, 41% could not have been filed in Philadelphia under the old “venue rule.”

Excessive verdicts pose a significant risk to the financial stability of healthcare institutions. This financial strain is impacting providers’ ability to deliver care and invest in necessary patient resources. It affects the development of new medical technologies and hinders recruitment and retention of physicians and other skilled medical professionals. As a result, these excessive verdicts may threaten access to critical healthcare services for citizens across the U.S.

At the Buchanan Life Sciences & Healthcare Summit held in Philadelphia last month, attorneys, insurance professionals and healthcare industry experts convened to discuss this nationwide trend. Buchanan attorneys were joined by John Ryan, Executive Vice President, Chief Counsel Officer and Corporate Secretary at Temple University Health System; and Nick Gaudiosi, Northeast Region Leader of Aon Risk’s National Healthcare Practice; to examine the current landscape and what healthcare providers can do to protect themselves.

Driving Forces of Excessive Verdicts

There are many factors driving the climbing verdicts seen in medical malpractice cases. Plaintiff attorneys have become increasingly adept at influencing juries, often through use of the “reptilian theory.” This litigation strategy is based on a behavioral theory that when people feel scared, they make decisions based on a primitive response to defend themselves from harm. This tactic has proven effective in persuading jurors to favor plaintiffs under the belief that punishing defendants will protect the community.

Plaintiffs are also effectively leveraging technology and social media to influence public perceptions. They’re increasingly utilizing jury consultants and focus groups to formulate and tell a compelling story. Jury sentiment has also changed in recent years as public trust in corporations and large institutions has declined.

How Health Systems Can Protect Themselves

Health systems seeking to effectively defend themselves should consider a new approach. Typically, it is not advised that defendants discuss themselves at length during a trial. However, as plaintiffs get creative in how they craft narratives, defendants need to respond with a story of their own. At Buchanan, we are defending cases to rebut plaintiff’s themes:

1. Focus on the positives: It’s important to tell the positive stories about the role health systems play in elevating the health of their patients. Providers can point to the specialized care they offer as well as their essential role in treating certain diseases and conditions prevalent in their communities.
2. Highlight benefits to the community: Many providers offer a significant amount of charity care to their surrounding community members and vulnerable populations. They can also consider sharing how many people they employ, how many community organizations they sponsor, the number of meals given to charity during the holidays and any other free services they provide that demonstrate their standing as a good community steward. Quantifying these efforts and explaining the provider’s important role in helping those who need it can help influence a positive perception among juries.
3. Corporate Negligence Defenses: These cases are often filed after tragic events. In Pennsylvania, Supreme Court cases have reviewed corporate negligence. As defendants often include health systems and parent companies, it’s important for counsel to ensure that plaintiffs are satisfying their burdens of proof as to these entities and consideration given to early motions for dismissal.

The Need for Experienced Counsel

In today’s environment of rising verdicts, higher settlements, changing rules and aggressive prosecutors, healthcare providers must take steps to protect themselves from medical malpractice lawsuits. It has never been more important for providers to retain experienced legal counsel and formulate defense strategies should a lawsuit arise. At Buchanan, our attorneys provide malpractice defense expertise and will take a proactive approach to protecting your organization. These lawsuits can lead to devastating financial impacts, and providers cannot afford to take any shortcuts in their defense.