Tort Reforms: What’s Changing?
Tort reforms being implemented across the U.S. are starting to change how liability claims are handled, and healthcare providers need to be aware of the changes. Major changes in 2023 and 2025 in states like Florida and Georgia have decreased the number of lawsuits and reduced legal costs. For instance, a new tort reform in Florida resulted in a decrease of lawsuits to 30%, which has made things easier for healthcare professionals facing injury claims. But these reforms are still a work in progress. Although California is not undergoing drastic reforms like some other states, it still has its own legal challenges. In fact, there are already attempts to reverse some of them, which could bring back the very issues that healthcare providers are working hard to avoid.
The Rise of Attorneys Getting Involved Early
In the early days of claim filing, more and more claimants hire attorneys. According to a report from Lexis Nexis, 75% of auto liability claimants hire legal representation within just two weeks of filing a claim. That means healthcare providers don’t have much time before a case can escalate into a legal battle. The quicker a provider can assess and manage a claim, the better the chances of resolving it without the involvement of an attorney.
This implies that medical professionals could be left with little time before any point escalates into a court battle. This means that to manage the claim, healthcare providers also have to take the help of an attorney on their side. In this scenario, outsourcing to a reputable claim management service can help them. The faster a provider is able to handle and evaluate a claim, the more opportunities exist that a claim will be handled in favor of the healthcare provider.
Communication is Key: How Early Interactions Make a Difference
The initial way of treating claims is actually important. In a study conducted by Sedgwick in 2024, 15 percent of those claimants who engaged an attorney did not plan to engage an attorney, originally. However, when they needed that, they were not treated fairly or respectfully by the insurance carrier they made a decision to take legal steps. This explains the importance of communication. When healthcare providers approach patients and deal with them in a respectful, clear, and empathetic manner, the likelihood of the claims translating into lawsuits will be reduced.
The Threat of Big Verdicts
Among the greatest liability action nightmares are the emergence of nuclear verdicts: those huge settlements that can turn greater than $100 million. There was more than an 80% increase between 2023 and 2024 in the occurrence of such verdicts. This is such a risk to the healthcare providers. The big verdicts can be many due to mishandling of claims during the initial stages, or at least by not determining the risks before they become out of control.
Mistakes to Avoid in the Early Stages:
The following are some of the most common mistakes that healthcare providers should avoid:
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Not Recognizing High-Risk Claims Quickly:
The first couple of weeks after a claim is made are crucial. Healthcare providers need to figure out if the claim has the potential to become complex or costly. Tools and systems can help flag these high-risk claims early. So providers can take action before things get out of hand.
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Inconsistent Legal Strategies:
If the defense strategy is not clear or well-coordinated from the beginning, it can cause confusion. This can increase the chances of a negative result. A consistent, unified approach is essential.
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Not Getting the Right Help Early:
If a claim seems like it could escalate, healthcare providers need to get the right experts involved early on. This means having experienced attorneys and claims professionals on board from day one.
How Outsourcing Liability Claim Management Can Help
Partnering with an experienced outsourcing team can help the management of liability claims. It can be a game-changer for healthcare providers. It ensures that claims are handled by experts on behalf of healthcare providers from day one. Allowing them to focus on patient care and running their practice.
Here’s how outsourcing can make a difference:
Expert Handling:
Outsourcing companies contribute specific expertise, particularly when it comes to negotiating the intricate legal landscape of high-litigation jurisdictions like California.
Speed and Efficiency:
These firms can quickly assess claims, identify risks, and move forward with a well-defined plan to prevent escalation.
Cost-Effective:
Instead of hiring a large in-house team, outsourcing allows healthcare providers to save on costs. While still getting top-notch claims management.
Flexibility:
As claim volumes fluctuate, outsourcing provides the flexibility to scale resources as needed, ensuring providers aren’t caught off guard.
Ultimately, the response of healthcare providers to liability claims in the initial days is of significant than ever before. It may be high-risk claims or communication skills, knowing when to call on the experts, being fast, and being smart. Can make all the difference. Outsourcing would also allow the providers to maintain a place at the top of the game. At the lowest risk, at the same time safeguarding their practice.
