Going Nuclear 

Good morning,

This week, we wanted to share a fantastic article from the Journal of Emerging Issues in Litigation (subscription required) about how social inflation impacts jury verdicts and how the health care industry and insurers can protect themselves against its adverse effects.

Authors Lindsay A. Nishan, Samantha B. Myers, and Sandra M. Cianflone methodically construct the case that nuclear verdicts are actively driven by social inflation, that the resulting impact on insurers contributes to rising healthcare costs, and that providers must take serious steps to counter the negative messaging that fuel exceptionally high jury verdict awards. 

That last point is what we want to highlight. 

Here is the quote from the article: 

“Healthcare professionals, hospital systems, administrators, and insurers must be proactive, purposeful, and aggressive in defending against social inflation and misinformation before litigation occurs.”

The article and a podcast about it recommend best practices for combating misleading information that sways public sentiment against healthcare providers and insurers. The authors’ recommendations include engaging with legal counsel, crisis management firms, corporate communication teams, and anyone else deemed necessary to inform a public messaging strategy. 

In recent weeks, we’ve covered the drivers and potential impact of social inflation. Private sector actors can combat social inflation by aggressively rebutting misinformation.