It's been an eventful week, with notable developments in the medical malpractice insurance landscape, including significant corporate acquisitions, upcoming high-profile court cases, and ongoing discussions about insurance market trends. Below is a comprehensive roundup of these events.
Corporate Acquisitions in Medical Malpractice Insurance
- ProAssurance Acquisition by The Doctors Company: On March 19, 2025, The Doctors Company, a leading medical malpractice insurer, announced its agreement to acquire specialty insurer ProAssurance for approximately $1.3 billion. ProAssurance offers coverage in medical liability, products liability for medical technology and life sciences companies, and workers' compensation insurance. The transaction is expected to finalize in the first half of 2026, after which ProAssurance will become a wholly owned subsidiary of The Doctors Company and will no longer be listed on the New York Stock Exchange. ProAssurance shareholders are set to receive $25.00 per share, representing a 60.9% premium over the previous closing price. This acquisition will result in a combined entity with assets totaling approximately $12 billion.
Source: Reuters
Upcoming and Ongoing Court Cases
- Stamford Hospital C-Section Lawsuit: A medical malpractice lawsuit concerning the 2017 death of Maura Gallagher during a cesarean section at Stamford Hospital is scheduled to go to trial on April 2. Gallagher, a 38-year-old from New Canaan, died from complications related to preeclampsia while giving birth to twins. The lawsuit alleges that Stamford Hospital, along with its parent company, three doctors, and four medical groups, failed to provide adequate care, leading to her death. The case will focus on the decision to proceed with the C-section without waiting for preeclampsia test results, which the family contends contributed to her death. Despite attempts at settlement, no agreements were reached, and the trial will address issues related to diagnosis, treatment, and management of Gallagher's condition during surgery.
Source: Stamford Advocate
Insurance Market Trends
- Rising Medical Liability Insurance Premiums: A recent report from the American Medical Association (AMA) indicates that nearly half of reported medical liability insurance premiums increased from 2023 to 2024. Specifically, 49.8% of premiums rose during this period, up from 13.7% in 2018. Furthermore, 46 states and Washington, D.C., reported at least one premium increase in 2024, highlighting a trend that could signal a hardening market. The AMA warns that if this trajectory continues, it may negatively impact patients' access to care due to a potential reduction in physician supply. Source: American Medical Association
Notable Settlements and Verdicts
- $412 Million Malpractice Award in New Mexico: In Albuquerque, New Mexico, jurors awarded over $412 million to a man in a medical malpractice case against NuMale Medical Center. The plaintiff, a 66-year-old man, was misdiagnosed and subjected to unnecessary and harmful erectile dysfunction injections in 2017. The lawsuit, filed in 2020, accused the clinic of running a fraudulent scheme to exploit elderly men. The jury found the defendants' conduct both fraudulent and negligent, violating the Unfair Practices Act. Source: AP News
- $13 Million Award in New Jersey Stroke Misdiagnosis Case: Cheryl Lynn Rhines, who suffered a stroke while driving in New Jersey in 2017, was awarded nearly $13 million after a state trooper mistook her condition for intoxication, delaying necessary medical care. The delay led to significant brain damage and lifelong disability. Initially awarded $19.1 million, the amount was reduced due to her pre-existing condition, settling at approximately $12.9 million after a jury trial. Source: New York Post
Legal and Regulatory Developments
- Georgia's Tort Reform Efforts: In Georgia, there is an ongoing push to limit civil lawsuits, with Governor Brian Kemp and Republican lawmakers advocating for tort reform. Business groups argue that excessive lawsuits lead to high insurance costs, while opponents contend that there is no clear link between lawsuits and rising insurance rates. Key issues include property owner liability in crimes or injuries on their premises, with discussions about implementing caps on non-economic damages and reducing liability for property owners. These proposed changes could have implications for medical malpractice lawsuits and overall care standards.
