When is a settlement reported to the NPDB?
We are frequently asked if there is a threshold dollar amount before a medical malpractice carrier must report a settlement to the National Practitioner Data Bank (NPDB), a federal entity. Some doctors think the amount is $30,000. Others believe it is over $100,000.*
Here’s the sad truth: if a medical malpractice carrier makes any payment to a plaintiff on your behalf in response to a written demand alleging malpractice, that is reportable. The carrier must report to the National Practitioner Data Bank or it risks being fined $23,331 per incident (this is a moving target, and likely to rise in the future). We have no idea how that number, $23,331, was calculated, but a carrier has a strong incentive to report any payment. And any payment, even for one measly dollar, is reportable.
*Note, the threshold for reporting a settlement to Boards of Medicine varies from state to state. In California, a settlement over $30,000 is reportable to the State Board of Medicine and it can be published online. That’s why some people think there is a dollar threshold for reporting to the National Practitioner Data Bank.
Chief Executive Officer & Founder
Jeffrey Segal, MD, JD is a board-certified neurosurgeon and lawyer. In the process of conceiving, funding, developing, and growing Medical Justice, Dr. Segal has established himself as one of the country’s leading authorities on medical malpractice issues, counterclaims, and internet-based assaults on reputation.
When is a medical malpractice settlement payment not reported to the National Practitioner Data Bank (NPDB)?
Medical malpractice settlement payments may not be reportable to the NPDB if there was never a demand made in writing, or in certain circumstances when there were multiple defendants.
No Written Demand
If there was never a demand made in writing, a payment is not reportable to the National Practitioner Data Bank.
Obviously, if a patient files a written lawsuit, this strategy is foreclosed. It would be unusual for a carrier to make a payment without a written demand, but we’ve seen it happen. On occasion, an attorney will pick up the phone, make a demand that you believe is not unreasonable, and your carrier will agree to make a payment; that is not reportable.
Multiple Defendants
If there are multiple defendants and a payment is made by your carrier, there is at least one circumstance where that payment is not reportable to the National Practitioner Data Bank.
You might ask how a payment can be made by a carrier, in response to a written demand, and still not be reportable—if you find yourself in this situation, schedule a consultation with our executive team. While this consultation topic falls outside the scope of the Medical Justice membership benefits, our team of experts can offer personalized guidance with an hourly fee. We have an effective strategy we have used several times to prevent reporting to the National Practitioner Data Bank—or, if the carrier still reports, as it often will do, to successfully petition the National Practitioner Data Bank to remove that nasty line item.
- Read More from Jeff Segal, MD, JD
Risking a report with your name without considering the consequences or options can cost you in the long run, as a negative report in the National Practitioner Data Bank can have serious implications for your career. For personalized guidance on dealing with a difficult situation involving the Data Bank, use the form below to schedule a consultation with our team of experts. Please note that this consultation topic falls outside the scope of the Medical Justice membership benefits, and thus is subject to an hourly fee.