Survey says: healthcare lawsuits on the rise

Healthcare Financial Management, Dec, 2008

Forty percent of healthcare companies expect litigation to increase in the next year, with 52 percent of healthcare companies facing six or more new lawsuits last year, according to law firm Fulbright & Jaworski LLP of New York. In its 2008 Litigation Trends Survey, Fulbright & Jaworski reports that 76 percent of healthcare companies surveyed faced at least one new lawsuit last year, with 25 percent of healthcare companies surveyed reported facing at least one $20 million action. Only 10 percent of healthcare companies surveyed expected a decrease in lawsuits in 2009.

Lawsuits related to labor and employment matters were the biggest concern of 53 percent of healthcare companies surveyed, followed by lawsuits related to contracts and professional services (47 percent) and personal injury (40 percent). Litigation also has become a major line item in some healthcare company budgets: 51 percent of healthcare companies surveyed reported they spent at least $1 million on litigation last year, excluding costs of settlements and judgments.