Protecting us or Compromising Medical Care?
America's problems are inextricably linked with its legal system. The United States is not unique in this respect but an open society affords opportunities to redress problems through new laws or- exacerbate them. This blog explores America's obsession with lawsuits, its immigration difficulties and a clash of values that underlies many of its struggles.
A blogpost of John Stossel is a good starting point in demonstrating the shortcomings of our tort system. From the italicized post entitled 'Lawsuits make us less safe:' My comments are in bold print.
Imagine if an evil business routinely deprived us of products that would help us live longer with less pain and more comfort. We'd be outraged, and lawyers would line up to sue. Yet something similar happens today, thanks to lawsuit abuse. Makers of all kinds of products are afraid to sell them to us because one lawsuit could ruin them.
Personal-injury lawyers claim they make America safer, but that's a myth. It's easy to see who benefits from those big damage awards we read about. Less obvious -- but just as real -- are the things we'd all like to have but never will get because of this climate of fear. Here are a few examples.
Lawyers make the self-serving claim that their lawsuits are linked to greater safety. As Stossel skillfully points out the effects of huge damage awards and a plethora of lawsuits is the opposite. Companies that are able to manufacture and supply us with products that would ameliorate health problems are discouraged from pursuing this due to a punitive legal system that makes the safety industry a target for legalized extortion.
Monsanto once developed a substitute for asbestos -- a new fire-resistant form of insulation that might save thousands of lives. But Monsanto decided not to sell it for fear of liability. Richard F. Mahoney, the CEO at the time, said, "There may well have been a safe, effective asbestos replacement on the market, and now there isn't."
Why do we have to worry about shortages of flu vaccine? Because only a handful of companies still make it. And why is that? Because when you vaccinate millions of people, some get sick and sue. Between 1980 and 1986, personal-injury lawyers demanded billions of dollars from vaccine manufacturers. That scared many American drug companies out of the business.
The problem here, as is the case with other medical products, is biology not negligence. Given a large enough market a small subset of people are going to be allergic or otherwise not receptive to a particular vaccine or medicine that benefits millions of others. The cause is genetic and the cure is not the institution of legal actions that deprive millions of legitimate health care.
In 1986, Congress stepped in. To help curb the lawsuits that discouraged vaccine production, the government established a fund called the National Childhood Vaccine Injury Compensation Program. It would pay victims' families directly so they wouldn't have to hire lawyers and suffer the delays of litigation. This was supposed to entice vaccine makers back into production, but drug companies were still leery, fearing that plaintiffs' lawyers would sue them anyway.
They were right to worry. Eli Lilly developed a mercury-based preservative called Thimerosal that was used in many children's vaccines. Plaintiffs' lawyers jumped on scaremongers' claims that mercury causes autism in children. Although a government-issued review found no such link, more than 100 autism lawsuits have been filed against vaccine makers since the National Childhood Vaccine Injury Compensation Act passed. No wonder most drug manufacturers still steer clear of vaccine research.
Even when new vaccines are discovered, drug companies are sometimes afraid to sell them. The FDA has approved a vaccine against Lyme disease. Want some? Forget about it. No company wants to take the risk.
So victims of the disease must forego treatment that could be helpful because of greed that is accomodated by our tort laws.
Fear of being sued reduced the number of American companies researching contraceptives from 13 to two.
After scientifically groundless lawsuits against breast-implant makers bankrupted Dow Corning, Japanese silicone makers stopped producing a pain-reducing silicone coating for hypodermic needles. A company director said, "We're sure our product is safe, but we don't want to risk a lawsuit."
Union Carbide has invented a small portable kidney dialysis machine. It would make life much easier for people with kidney disease, but Union Carbide won't sell it. With legal sharks circling, the risk of expensive lawsuits outweighs the possible profit.
Are you pregnant and nauseous? Bendectin would probably cure your morning sickness. For 27 years doctors prescribed the drug to 33 million women because it was so good at stopping nausea and vomiting. But you can't buy Bendectin today because lawyers kept suing the manufacturer, Merrell Dow, claiming the drug caused birth defects.
Studies did not show that Bendectin caused birth defects, and Merrell Dow won most of the lawsuits. But after spending $100 million in legal fees and awards, the company gave up selling the drug. Bendectin has never been effectively replaced, and morning sickness is now a major contributor to dehydration during pregnancy.
Dr. Paul Offit, professor of pediatrics at the University of Pennsylvania School of Medicine, says, "Within two years of discontinuing Bendectin, the incidence of hospitalization for dehydration during early pregnancy doubled; the incidence of birth defects was unchanged."
Those are just some of the life-enhancing products we know we must do without because America's peculiar legal system makes it profitable for trial lawyers to pursue extortion -- like litigation. What wonderful products will we never even hear about because the lawyers have created a climate of fear?
The need for legal reform is long overdue. The choice is not one of extremes i.e. no legal redress or the present system. There are workable compromises but they await much needed public awareness and outrage.
A blogpost of John Stossel is a good starting point in demonstrating the shortcomings of our tort system. From the italicized post entitled 'Lawsuits make us less safe:' My comments are in bold print.
Imagine if an evil business routinely deprived us of products that would help us live longer with less pain and more comfort. We'd be outraged, and lawyers would line up to sue. Yet something similar happens today, thanks to lawsuit abuse. Makers of all kinds of products are afraid to sell them to us because one lawsuit could ruin them.
Personal-injury lawyers claim they make America safer, but that's a myth. It's easy to see who benefits from those big damage awards we read about. Less obvious -- but just as real -- are the things we'd all like to have but never will get because of this climate of fear. Here are a few examples.
Lawyers make the self-serving claim that their lawsuits are linked to greater safety. As Stossel skillfully points out the effects of huge damage awards and a plethora of lawsuits is the opposite. Companies that are able to manufacture and supply us with products that would ameliorate health problems are discouraged from pursuing this due to a punitive legal system that makes the safety industry a target for legalized extortion.
Monsanto once developed a substitute for asbestos -- a new fire-resistant form of insulation that might save thousands of lives. But Monsanto decided not to sell it for fear of liability. Richard F. Mahoney, the CEO at the time, said, "There may well have been a safe, effective asbestos replacement on the market, and now there isn't."
Why do we have to worry about shortages of flu vaccine? Because only a handful of companies still make it. And why is that? Because when you vaccinate millions of people, some get sick and sue. Between 1980 and 1986, personal-injury lawyers demanded billions of dollars from vaccine manufacturers. That scared many American drug companies out of the business.
The problem here, as is the case with other medical products, is biology not negligence. Given a large enough market a small subset of people are going to be allergic or otherwise not receptive to a particular vaccine or medicine that benefits millions of others. The cause is genetic and the cure is not the institution of legal actions that deprive millions of legitimate health care.
In 1986, Congress stepped in. To help curb the lawsuits that discouraged vaccine production, the government established a fund called the National Childhood Vaccine Injury Compensation Program. It would pay victims' families directly so they wouldn't have to hire lawyers and suffer the delays of litigation. This was supposed to entice vaccine makers back into production, but drug companies were still leery, fearing that plaintiffs' lawyers would sue them anyway.
They were right to worry. Eli Lilly developed a mercury-based preservative called Thimerosal that was used in many children's vaccines. Plaintiffs' lawyers jumped on scaremongers' claims that mercury causes autism in children. Although a government-issued review found no such link, more than 100 autism lawsuits have been filed against vaccine makers since the National Childhood Vaccine Injury Compensation Act passed. No wonder most drug manufacturers still steer clear of vaccine research.
Even when new vaccines are discovered, drug companies are sometimes afraid to sell them. The FDA has approved a vaccine against Lyme disease. Want some? Forget about it. No company wants to take the risk.
So victims of the disease must forego treatment that could be helpful because of greed that is accomodated by our tort laws.
Fear of being sued reduced the number of American companies researching contraceptives from 13 to two.
After scientifically groundless lawsuits against breast-implant makers bankrupted Dow Corning, Japanese silicone makers stopped producing a pain-reducing silicone coating for hypodermic needles. A company director said, "We're sure our product is safe, but we don't want to risk a lawsuit."
Union Carbide has invented a small portable kidney dialysis machine. It would make life much easier for people with kidney disease, but Union Carbide won't sell it. With legal sharks circling, the risk of expensive lawsuits outweighs the possible profit.
Are you pregnant and nauseous? Bendectin would probably cure your morning sickness. For 27 years doctors prescribed the drug to 33 million women because it was so good at stopping nausea and vomiting. But you can't buy Bendectin today because lawyers kept suing the manufacturer, Merrell Dow, claiming the drug caused birth defects.
Studies did not show that Bendectin caused birth defects, and Merrell Dow won most of the lawsuits. But after spending $100 million in legal fees and awards, the company gave up selling the drug. Bendectin has never been effectively replaced, and morning sickness is now a major contributor to dehydration during pregnancy.
Dr. Paul Offit, professor of pediatrics at the University of Pennsylvania School of Medicine, says, "Within two years of discontinuing Bendectin, the incidence of hospitalization for dehydration during early pregnancy doubled; the incidence of birth defects was unchanged."
Those are just some of the life-enhancing products we know we must do without because America's peculiar legal system makes it profitable for trial lawyers to pursue extortion -- like litigation. What wonderful products will we never even hear about because the lawyers have created a climate of fear?
The need for legal reform is long overdue. The choice is not one of extremes i.e. no legal redress or the present system. There are workable compromises but they await much needed public awareness and outrage.
Labels: Lawsuits
posted by Paul at 8:45 PM
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