Medical Malpractice: Is an Economist Needed?

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

A medical malpractice claim needs an economist when the injury has changed what the patient can earn, created ongoing care costs, or ended the patient's ability to do household work. The added feature of these matters is the comparison: the loss is measured against the outcome the patient would have had with proper care, not against perfect health. Counsel considering an economist should be prepared to describe both paths, because the economist needs the causation opinions to define what the patient would have earned and needed regardless of the negligence.

Checklist

  1. Confirm the expected outcome with proper care from the causation opinions so the but-for path can be defined
  2. Gather the patient's earnings history: tax returns, W-2s or 1099s, and pay stubs
  3. Identify any pre-existing condition that affected work or life expectancy independently of the injury
  4. Determine whether a life care plan or treating recommendations will define the incremental future care
  5. Note the patient's role in household work before the injury

Questions to ask the economist

Timeline

Two to three weeks to a preliminary view, because the but-for path depends on causation opinions that may still be in progress. The full report follows the retention and records phases.

Required documents

Common pitfalls

Frequently Asked Questions

Why does the economist need the causation opinions before starting?

Because the loss is the difference between two paths, and the but-for path in a malpractice case is not full health but the outcome proper care would have produced. Without a medical opinion on that outcome, the economist cannot state what earnings, care, and life expectancy the patient would have had regardless of the negligence.

Is the economic analysis different when the patient survived with a permanent injury rather than died?

The structure differs, not the method. For a surviving patient the components are lost earnings and earning capacity, fringe benefits, household services, and incremental future care, each measured as the difference between the two paths. For a death the analysis becomes a wrongful death loss to the survivors, still measured against the outcome proper care would have produced. Both use the causation opinions to define the but-for path.

Can a preliminary range be prepared before the causation opinions are written?

A limited one. The economist can establish the earnings base, the fringe benefit rate, and the household services baseline from the financial and household records, and can show what the loss would be under stated assumptions about the two outcomes. The figures are labeled as provisional, and the full report waits for the medical opinions that fix the but-for path.

References

Request a consultation on Medical Malpractice or call (201) 343-0700. Plaintiff and defense counsel.