Malpractice Insurance Costs Driving Doctors Away

It is becoming an increasingly common story-physicians throughout the Philadelphia region are limiting the scope of their practice or leaving medicine altogether. The cause? Skyrocketing malpractice insurance rates.

According to a survey conducted by the medical societies in Chester, Montgomery, and Delaware counties, 54% of physicians surveyed said they have considered moving their practice to another state or region. The survey also revealed that 59% of doctors plan to retire early or enter another profession, while 58% may have to close their practices.

The Philadelphia region has the highest malpractice premiums in the nation due to a spate of high jury awards in recent malpractice suits. Premium increases for primary malpractice coverage rose an average of 40% this year, according to the Delaware County Medical Society. These increases have also led physicians to delay hiring additional staff (69%), reduce employee benefits (52%), and lay off staff (30%).

From the February 12, 2001 Philadelphia Business Journal article, "Malpractice Insurance Costs Driving Docs Away."