Reforms Needed to Meet Rise in Malpractice Payouts
Higher Costs for Doctors, Patients
A recent court decision to award RM9.45 million in costs and damages to a boy who suffered brain damage at birth in a public hospital has drawn significant attention, particularly within the legal, medical, and insurance communities. The sum awarded is believed to be the highest granted by a Malaysian court in a medical negligence case involving a government hospital. This implies that taxpayer money will ultimately be used to settle the compensation.
Last week, Federal Court Judge Vazeer Alam Mydin Meera told a law conference in Johor Bahru that awards in medical malpractice cases are expected to rise alongside the increasing cost of healthcare. He noted that healthcare expenses are becoming more expensive as Malaysians live longer and as advances are made in medicine, treatment, and equipment.
Justice Vazeer emphasized that such awards are not intended to enrich victims but to help restore their quality of life as much as possible, adding that judges are guided by the expert evidence given by medical professionals.
Bank Negara’s Role
These challenges require the attention and intervention of Bank Negara Malaysia, which regulates the insurance industry. The central bank should evaluate whether the premium increases – for individual medical coverage or indemnity insurance for doctors and hospitals – are justified. Rationalization of these costs may be necessary.
As for the courts, they cannot impose an artificial control on the limits of awards as they are bound by established principles and compendiums of damages before giving the awards. And when it comes to deciding on life spans, they cannot play God. The judges have to assess the testimonies of expert witnesses and the official estimates on the average life span of Malaysians when deciding on the quantum.
Alternative to Court Action
As we know, this can take as long as four to five years for settlement. It’s too long a wait for those who are already in physical and emotional pain. To expedite resolutions, some suggest the government introduce a mandatory alternative dispute resolution system. This approach, practiced in the UK, includes mediation and arbitration processes that could help resolve disputes before they reach court.
Mediation is a process where an independent third party helps the claimant and the company to reach a mutually acceptable outcome. However, the mediator cannot impose a solution. Arbitration, on the other hand, allows an independent arbitrator to evaluate the facts and issue a legally binding decision.
When Others Benefit
In certain cases, huge one-off awards have led to misuse by the next of kin of the victims. According to insurers, there have been cases of the parents or guardians absconding with the money after abandoning the disabled victims in welfare or nursing homes. In some cases, the huge awards meant for future damages and care goes to the trustee when the patient dies soon after receiving the compensation. The money ends up enriching whoever manages the funds, which goes against the principle of the court that medical malpractice awards should not enrich the victim or their guardians.
Conclusion
These issues merit careful consideration by those in the medical, legal, and insurance professions, as well as the government. With medical malpractice cases and compensation amounts likely to increase, reforms may be necessary to ensure fair and efficient outcomes for all involved.
FAQs
Q: What is the expected rise in medical malpractice payouts?
A: Awards in medical malpractice cases are expected to rise alongside the increasing cost of healthcare.
Q: Who regulates the insurance industry in Malaysia?
A: Bank Negara Malaysia regulates the insurance industry in Malaysia.
Q: What is the alternative dispute resolution system?
A: The alternative dispute resolution system includes mediation and arbitration processes that could help resolve disputes before they reach court.
Q: What is the purpose of medical malpractice awards?
A: Medical malpractice awards are intended to help restore the quality of life of victims as much as possible, not to enrich them.