Page 9 - SFHN JAN 2022

Omicron: What We Know About
Malpractice Insurance

EXPERT ADVICE the Newest COVID Variant

Omicron is the newest assessing Omicron, so it’s
Social Inflation Influencing COVID-19 variant dominat- too early to make defini-
ing the headlines. While this tive statements about this
Lawsuits, Verdict Amounts new strain of the virus is rais- variant and so it’s impor-
tant that the public follow
ing questions, we continue to
learn more information about safety measures. As we
Omicron every day. As the learned with the Delta
BY VANESSA ORR
Centers for Disease Control variant, vaccines are
As the legal saying goes, there are three and Prevention (CDC) and expected to be effective in
sides to every story: the plaintiff’s side, other public healthcare part- reducing the risk of severe
the defense’s side, and the truth, which is ners continue to monitor illness, hospitalization
somewhere in the middle. And while Omicron, here’s what we and death.
courts and juries used to be able to come know about the variant so far: BY JOSHUA LENCHUS, While some treatments

to a conclusion based on the facts, in Why Is This DO, RPH, FACP, SFHM may not be as effective
these days of social inflation, perception Happening? against Omicron, mono-
is often just as important as reality. clonal antibody treatments may help the
“Social inflation is causing much high- The virus that causes COVID-19 is con- immune system recognize and respond
er jury awards and increased insurance stantly changing, which produces new more effectively to the virus.

losses—not only in medical malpractice variants of the virus. While some variants What You Can Do
cases, but in all areas of litigation,” persist, others disappear. Public health
explained Tom Murphy, producer, experts, such as the CDC and the World As we continue to fight this global pan-
National Health Care Practice Danna- Tom Murphy Health Organization, are monitoring demic, getting vaccinated and receiving
Gracey, a Division of Risk Strategies. were 73 court approved class-action settle- Omicron and other variants to assess the recommended booster shot is your
Social inflation is a term used to ments totaling $2.1 billion. In 2020, there transmissibility, severity of infection and most powerful defense against COVID-19.
describe the rising costs of insurance were 77 court approved class-action settle- symptoms, as well as the effectiveness of Wearing a mask indoors is also effective
claims resulting from things like increas- ments that totaled $4.2 billion. vaccines, diagnostic testing and treat- in reducing the spread of the virus, espe-
ing litigation, broader definitions of lia- “In one year, the settlements dou- ments. cially if you’re unvaccinated. Continue

bility, more plaintiff-friendly legal deci- bled—that’s a staggering statistic,” said What We Know washing your hands and practicing physi-
sions, and massive jury awards, some- Murphy, adding that the average settle- cal distancing when necessary.
times known as nuclear verdicts. ment in 2020 per class action suit was This newest variant was first identified If you’re experiencing any cold or flu-
For example, a study by Verdict Search $54.5 million, a 15 percent increase year in South Africa and has subsequently like symptoms, please stay home, distance
showed that between 2019-2020, there over year for the past 10 years. spread to the U.S. Based on the limited yourself from others and consult your
was a more than 300 percent increase in Other factors that contribute to social number of cases, it appears this variant physicians if symptoms persist. Seek emer-
the frequency of verdicts of $20 million inflation are the sophistication of the spreads more quickly than its predeces- gency medical care if needed.
or more from a previous study that cov- plaintiff bar, in which tactics include the sors, but the severity of symptoms may be
ered verdicts between 2001-2010. use of jury consultants and psychologists milder. Dr. Joshua Lenchus is Broward Health’s
“A $2 million verdict 15 to 20 years specializing in group dynamics with the Again, public health experts are still interim chief medical officer.
ago would be $30 or $40 million now,” goal of influencing the size of jury
said Murphy. awards, and private equity firms becom-
Murphy says that part of the reason for ing involved in litigation funding.
these verdicts is an almost generation-long “Millennials and Gen Z age groups
decay of public trust in corporations, have a different world view than older What Video Can Do For You
spurred by social media and the changing groups, and they are now serving on
demographics of the younger generations. juries,” said Murphy. “They prefer to be Healthcare is its own gering hospital work
“When you see a corporation do some- part of a consensus, which impacts the particular category and schedules.
thing that is not in the public interest, or outcome of verdicts. At the beginning of doesn't necessarily con- Video content can
getting bad PR even if they did not neces- a case, the plaintiff bar looks for the jury form to standard market- solve all those problems.
sarily do something wrong, Gen Z and the foreman or leaders and tries to influence ing practices. Marketing It's a simple solution to a
younger generations start texting and talk- them by using psychological tactics to budgets aren't first on the complicated situation.
ing about it, and it catches on like wild- try to get the rest of jury to agree to ver- depth chart when allocat- Through the power of
fire,” he said. dicts that have values that far exceed ing a hospital or health- video, you can dissemi-
He adds that ‘a culture of fault,’ in which what a normal jury would find. care system's annual nate any message with
people automatically blame others when “Private equity firms give law firms the budget. sight, sound, motion,
something bad happens to them, also con- funding needed to take on cases that in However, ever since we and emotion. Need to
tributes to increased litigation and higher the past they may have been hesitant to entered the new normal discuss a new hospital
jury verdicts. pursue,” he added. “They are spending of life in a COVID envi- BY CHAD TINGLE policy? Produce a video
“It’s an interesting dynamic; in the past billions to get involved in litigation with ronment, the importance and post it on your pri-
year or so with COVID, people were more the goal of taking a percentage of the of marketing cannot and vate network with a
willing to support hospitals because they award if the firm wins the case.” should not be overlooked. The impor- link. Need to keep morale up? Create
were trying to help people and save lives,” Murphy adds that while social infla- tance of telling a story in today's a video showing all the good work
said Murphy. “And while that has helped a tion trends are hard to predict, he doesn’t video-obsessed culture is no longer the your hospital is doing. Need to hire
little, we’re still seeing individuals looking see it going away any time soon. exception but the rule. more staff? Create a video on the ben-
to blame someone and looking for money. “Everything goes in cycles in terms of Hospitals are their only little city efits of working in healthcare.
This culture of fault is very dangerous to lawsuits and litigation, but this is differ- comprised of many different depart- The possibilities are endless, and the
medical practices and to all businesses. ent,” he said. “Information is now out ments all committed to achieving the process is not as complicated as you
“Not only does the average person have there in the flash of an eye, and no one is goal of providing excellent healthcare. think when working with the right
a skewed perception of the economic dis- vetting it; and it’s having a huge impact Each department has its challenges production company. Crown Street
parity between corporations and regular on court cases and awards.” and needs. Marketing must maintain a Films has the experience necessary to
individuals, but they also have a different brand and image and get patients; after help hospitals and healthcare systems
perception of the value of an injury, result- For more information, call Tom Murphy all, a hospital is also a business. alike stand out with creative, informa-
ing in higher claims values and judge- or Matt Gracey at (800) 966-2120 or visit Human Resources needs to retain staff. tive, and professionally produced con-
ments,” he added. www.dannagracey.com. The insurance department must han- tent.
For example, in 2019 in the U.S., there dle a tremendous amount of red tape. Please give us a call, and we'll show
Perhaps most importantly and often you how helpful, practical, and com-
overlooked is the training, communi- pelling video can be for you.
cation, and continuing education
E-mail Your Editorial Submissions to required for public safety. It can be For more information, contact Chad
editorial@southfloridahospitalnews.com challenging to ensure everyone gets Tingle at (305) 794-7201
the same message because of the stag- or chad@crownstreetfilms.com.

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