Early malpractice settlements: good idea, no silver bullet.(Practice Trends)

A federal experiment to encourage early settlement of malpractice cases through a confidential mediation process won't solve the medical liability crisis, but it's a step in the right direction, physicians and other health experts claim.

To avoid courtroom battles and costly legal fees, the "early offers" program announced by the Department of Health and Human Services gives parties in a potential lawsuit the chance to negotiate a claim through an independent mediator.

"This is a test to see if this is potentially successful" in speeding compensation to injured patients. Bill Pierce, spokesman for the HHS, said in an interview.

"If implemented broadly, [the department believes] this would have a substantial impact on medical costs," he said. As of yet, there are no estimates on potential cost savings.

It's a process that has its benefits, but needs to be carefully thought out, James Saxton, chair of the health care liability and litigation practice group of the American Health Lawyers Association, told this newspaper.

When appropriate, early settlement of malpractice claims means prompt compensation for the injured patient without the need for an expensive lawyer.

However, "there are multiple implications for a physician when a payment is made to patient due to alleged malpractice," such as a report to the National Practitioner Data Bank, potential state board actions, and credentialing concerns, Mr. Saxton said.