Yes, the majority of hospitals settle medical malpractice claims out of court. In fact, over 90% of medical malpractice lawsuits are resolved through settlements rather than going to trial, according to multiple legal sources. Hospitals and healthcare providers often prefer this route to avoid the high costs and uncertainties associated with a courtroom battle.
Why Do Hospitals Prefer Settlements in Medical Malpractice Cases?
1. Cost Savings
Litigating a medical malpractice case can be extremely expensive. Trials involve court fees, expert witnesses, legal staff, and months (or years) of preparation, settling a claim early helps hospitals avoid these significant expenses.
2. Reputation Management
A public trial can harm a hospital’s reputation. Sensitive details about care quality, patient safety, or provider negligence may become part of the public record.
3. Faster Resolutions
Trials can drag on for years, delaying closure for both the patient and the healthcare provider. Settlements allow both parties to move forward more quickly and avoid prolonged emotional and financial strain.
4. Reduced Legal Risk
Jury verdicts are unpredictable. Even if a hospital believes it has a strong defense, there’s no guarantee of winning in court. Settlements offer a controlled outcome, minimizing the risk of a large jury award.
5. Confidentiality
Most settlements include non-disclosure agreements. This ensures that the details of the case and the terms of the settlement remain private, which is important for institutions seeking to avoid public scrutiny.
Bottom Line:
Hospitals are highly motivated to resolve medical malpractice claims through out-of-court settlements due to financial, legal, and reputational factors. While some cases still go to trial, these are the exception—not the rule.