Do Hospitals Usually Settle Medical Malpractice Cases Out of Court?

Allexa Callaway • May 22, 2025
Gavel lying next to a stethoscope in a court house in Pittsburgh, PA.

Medical malpractice cases involving hospitals can be complex and emotionally charged. For victims seeking justice and compensation, understanding how hospitals handle malpractice claims and whether these cases typically settle out of court is crucial. This blog examines the factors that influence hospital settlement decisions and what this means for victims.


Understanding Medical Malpractice in Hospitals

Medical malpractice in hospitals occurs when a healthcare provider fails to adhere to the accepted standard of care, resulting in patient harm. Common issues include surgical errors, misdiagnosis, inadequate patient monitoring, and medication mistakes. Given the serious implications of these claims, many victims are left wondering whether their case will settle or proceed to trial.


Settlement Trends in Hospital Malpractice Cases

Statistical data indicates that a significant number of medical malpractice cases against hospitals settle before reaching trial. Research shows that approximately 70% to 80% of malpractice claims result in settlements. This trend can be attributed to various factors, including the costs associated with litigation and the desire of hospitals to minimize public scrutiny.


Factors Influencing Hospital Settlements

Several key factors influence whether a hospital will choose to settle a malpractice claim:


Strength of Evidence

The strength and clarity of the evidence presented in a malpractice claim significantly impact the likelihood of settlement. If the plaintiff possesses compelling evidence demonstrating negligence on the part of the hospital or its staff, the hospital may opt for a settlement to avoid the risks and costs associated with a trial.


Insurance Company Involvement

Most hospitals are covered by liability insurance that protects them against malpractice claims. Insurance companies often prefer to settle cases to minimize financial exposure. If an insurer determines that settling a case is more cost-effective than defending it in court, they may encourage the hospital to reach a settlement agreement.


Cost of Litigation

The financial implications of pursuing a case through trial can be substantial. Hospitals must consider attorney fees, expert witness costs, and potential jury awards. To avoid these expenses, many hospitals choose to settle when presented with a reasonable offer.


Emotional and Reputational Considerations

The emotional toll of legal battles can be significant for both the plaintiff and the hospital. Trials can draw media attention, potentially damaging a hospital’s reputation. To mitigate public scrutiny and maintain trust within the community, hospitals may lean toward settlement agreements when feasible.


When Do Cases Go to Trial?

While many hospital malpractice cases settle, certain circumstances may lead a case to trial:


Disagreement on Liability

If there is a substantial dispute regarding whether negligence occurred, the hospital may choose to fight the case in court. This is often the case when both parties present conflicting evidence about the events that transpired.


Insufficient Settlement Offers

If a plaintiff believes that the settlement offer does not adequately compensate for the damages suffered, they may opt to take the case to trial. This is particularly true when serious injuries or long-term consequences are involved.


Precedent Setting

In some instances, plaintiffs may pursue a trial to set a legal precedent or to highlight systemic issues within the hospital that require public attention.


The Role of Pennsylvania Malpractice Attorneys

Navigating the complexities of hospital malpractice claims can be challenging. Engaging an experienced attorney can significantly impact the outcome of a case.


Benefits of Legal Representation

Expert Guidance: A knowledgeable malpractice attorney can evaluate the merits of a case and provide insights into the likelihood of settlement versus trial based on specific circumstances.


Negotiation Skills: An attorney can advocate effectively for the plaintiff during settlement negotiations, aiming to secure a fair and just compensation amount.


Trial Preparedness: If a case must go to trial, having legal representation ensures that the plaintiff is well-prepared to present their case compellingly.


Most hospitals tend to settle medical malpractice cases to avoid the risks and costs associated with litigation. However, every case is unique, and various factors influence the decision to settle or proceed to trial. For victims navigating the complexities of a medical malpractice claim against a hospital, seeking legal guidance from experienced professionals is essential.


Frischman & Rizza in Pittsburgh, PA, specializes in medical malpractice cases and is dedicated to helping victims understand their rights and options. For expert legal assistance, contact Frischman & Rizza at 412-274-0134 for a free consultation.

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