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How Medical Providers Are Being Misled By Tort Reform

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This 2-Minute Monday Personal Injury Healthcare Mindset is about not being misled and scared into action by attorneys and law firms.

How Medical Providers Are Being Misled About Tort Reform

Tort reform is sweeping the country, and while the plaintiff’s bar is shouting that “the sky is falling,” medical providers are being misled, manipulated, and misinformed.

Yes, tort reform is accelerating—Arizona, Florida, Georgia, Utah—and now California is the biggest battlefield.  That’s because Uber is backing a ballot initiative with two goals:
One, eliminate the collateral source rule, which let attorneys show full retail medical bills instead of the amounts actually paid.
Two, cap attorney fees at 25%.

The first one, on the elimination of the collateral source rule, is faking you out. Because that limitation is for evidence submitted to trial, not a reduction of payment of your bill. 

So it’s that second part is what truly terrifies PI attorneys.

And now you have attorney organizations running to medical providers, begging for money, claiming, “This will destroy PI!” Don’t buy it. The PI sky is NOT falling. Not even close.

Jury trials make up less than 3% of PI cases. Good attorneys win based on storytelling, not bill totals. Tort reform only hurts the lesser attorneys—the ones who couldn’t try their way out of a paper bag.

Yes, a fee cap will hit the firms that charge 40% to 45% and leave little for patients or providers. Those firms should be scared. If Uber wins in California, this model will spread to other states.

But here’s the truth: PI isn’t dying. Bad law firms are. Ethical, skilled, value-driven medical providers—and the good attorneys—will thrive no matter what.

And think about it, at a 25% attorney fee cap that means more money for providers and patients, including in the smaller settlements where those huge attorney fees leave almost nothing for anyone else.

So don’t get misled. Don’t get manipulated. Don’t get misinformed. Tort reform isn’t the end of PI.

The sky is not falling. This isn’t the time to panic. This is the time to rise.

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