Evidence already suggests that liability concerns cause physicians to exit particular medical specialties, such as obstetrics and surgery. Now, a study in the current issue of The Journal of Law & Economics demonstrates that physicians may also decrease their workloads as liability risks rise.  

Employing a new liability measure, the researchers found that the hours physicians worked per week decreased by 2.85 percent when expected liability costs increased 10 percent. This decrease is equivalent to 1 out of every 35 physicians leaving the workforce. The linkage between rising liability and reduced work hours was strongest for physicians 55 and older. Sole proprietors also exhibited a relatively strong reaction.

The study also found that a $1 increase in expected liability is linked to a $0.70 to $1.05 increase in malpractice premiums.