Medical Malpractice Payouts Continue to Climb in U.S.

June 15, 2015

For the second consecutive year, medical malpractice payouts in 2014 increased over four percent from the previous year.

After declining from 2003 through 2012, malpractice payouts started to rise in 2013 and continued to rise at a steady pace in 2014 – marking a trend of increased medical malpractice payouts in the U.S., according to an analysis by Diederich Healthcare, a division of Diederich Insurance Agency, which specializes in medical malpractice insurance.

According Diederich’s report, the National Practitioner Data Bank (NPDB) data in 2014 reported an increase of 4.4 percent in payout amounts, bringing the nationwide total to $3.9 billion. If the trend continues, 2015 could be the year that the total crosses the $4 billion threshold.

Several states, including California and much of the West region, saw decreases. However, most states saw an increase – particularly states in the South and the Northeast.

New York is again the highest state in terms of per capita payouts at $36.15 paid out for every individual residing in the state. The Northeast as a whole had a per capita payout rate of $28.20, which is more than three times greater than the next highest region, the Midwest.

The 2014 data showing medical malpractice payouts are again trending upward after nearly a decade of decreasing payouts could affect rates. Diederich Healthcare, which is based in Carbondale, Illinois, says it saw physician malpractice insurance premiums generally go down as the payouts decreased and now that payouts nationwide have started to increase the last couple of years, Diedrich brokers say they expect malpractice insurance carriers to review their rates to determine if they are still adequate in light of this increasing trend.

The NPDB keeps records of all negative actions that have been brought against any medical worker.

The full report and inforgraphic can be downloaded at


Topics USA Medical Professional Liability

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