Medical Malpractice Insurance companies, employing a two-tier system to pigeonhole doctors by costs, have been demonstrated to inaccurately classify those physicians 22% of the time. (Rand Corp. Report, New England Journal of Medicine.)
“Consumers, physicians, and purchasers are all at risk of being misled by the results produced by these tools,” concluded the researchers who analyzed aggregated claims data for 2004 and 2005 from four Massachusetts insurance companies. Using “commercial software,” they looked at data from 12,789 physicians in 10 specialties and constructed “homogeneous episodes of care” to create cost profiles for healthcare episodes such as treatments for diabetes, heart attack or urinary tract infection.