Insurance in Medical Malpractice Cases
A patient goes to a doctor for a checkup. The doctor tells the patient that he or she needs a certain medical procedure. The doctor counsels the patient and provides various reading material about the procedure. The patient decides to undergo the procedure and signs numerous waivers stating that he or she understands the nature of the procedure and the risk involved.
Shortly after the completion of the procedure, the patient feels that something is wrong. The patient speaks to a medical malpractice lawyer who files a suit against the doctor and the doctor’s insurance company; claiming negligence. In addition, the patient obtains an affidavit from another medical professional who states that the procedure was performed incorrectly and is the cause of the patient’s current problems.
As the case moves into the discovery stage and eventually into trial, the doctor generally has little involvement in the case. Instead, the doctor’s insurance company becomes the primary entity calling the shots. The attorney hired by the doctor’s malpractice insurance company handles the case. This is due to the relationship between the doctor and the insurance company.
Independent Observations
For medical malpractice suits that involve insurance companies, it is imperative to perform independent research. Often, insurance companies claim that there is no cause of action. It supports this claim by hiring other medical professionals to say that the doctor did nothing wrong. This is sometimes persuasive to a jury even though the hired doctor is being paid to give his or her testimony. Therefore, it is best to independently evaluate the merits of a case.
Settlement Decisions
Under the Georgia rules of Professional Responsibility, the client makes the decision whether to settle or continue court action. While the lawyer can advise the client regarding what the lawyer believes is the best path for the client, it is ultimately a client decision. During a medical malpractice suit, the party making the decision to settle or continue court action is usually the insurance company. However, some malpractice policies allow the doctor discretion to reject a settlement even if his insurer and attorney recommend otherwise.
Note that the relationship between the doctor and insurance company has a significant impact as to how the parties handle settlements. Insurance contracts between doctors and insurance companies usually have a cap. That is, there is a dollar limit that an insurance company is obliged to pay. The insurance company has no more liability beyond that dollar amount unless it acts in bad faith by refusing to settle and protect the doctor (its insured) from an excess judgement.
For instance, the contract states that the insurance company is only liable up until $2 million per lawsuit. If the patient offers to settle the case for $2 million, the insurance company may reject that offer because it would not have the incentive to settle (i.e. that is the most it could lose in most scenarios). If the case goes to trial and the jury awards the patient more than $2 million, the insurance company would only be liable for $2 million. If the jury awards less, the insurance company would pay less to the patient. As such, when negotiating with an insurance company in a medical malpractice case, it is important to understand the contractual nuances governing the agreement between the doctor and the insurance company. The patient can determine this information by gaining access to the contract during the discovery phase of a medical malpractice lawsuit.
Contact Attorney Joel Williams if you are a Victim of Medical Malpractice
If you are a victim of medical malpractice, contact the personal injury law firm of Joel Williams, a Kennesaw, Georgia lawyer who fights for injury victims. If you have questions or would like to discuss your case, please call our office today at 833 – LEGALGA for a free consultation.
