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Why has the amount of litigation increased?
Potential benefits: protection from litigation, increased productivity and generally better business continuity.
That last part is important, because with civil courts underfunded and litigation increasing, even simple cases are going to take years and years to attain their day in court.
The cost of such litigation would increase the cost of health insurance for employers and employees alike, Mr. Gramm said.
"A celebrity being named as an individual respondent can raise the stakes of employment litigation and increase a claimant's bargaining position for a higher settlement due to the potential significant adverse media attention on the individual concerned," said Richard Nicolle, partner at law firm Stewarts Law.
Specifically, these diseconomies include (1) an increased incidence of civil litigation; (2) increased insurance premiums for medical responsibility; (3) a consequent refusal by insurance companies to assume the warranty of the clinical risks; (4) longer waiting lists; (5) more general and unsustainable waste in healthcare expenditures.
And with sloppier patenting standards, litigation has increased.
Hospitals and medical staff are leaving themselves very vulnerable to expensive litigation and increased payouts by being slow to change the way the consent process happens.
The government brushed Mr Davis aside by pointing out that neither the value of claims nor the volume of litigation have increased much recently: last year, accident claims actually fell by 9.5%.
The risk of litigation also increases if PSFs do not handle potential conflicts of interest appropriately (see Mehran and Stulz 2007, for a review of the empirical literature on this conflict of interest).
"The chance of litigation has increased.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com