Medical Malpractice Trends: What’s Changed Since 2023?

Three years ago, MagMutual’s 2023 Risk Environment Reports identified two medical malpractice trends moving in opposite directions: claim frequency was declining, while claim severity was rising.

That dynamic remains true today. Investments in patient safety, communication practices and risk management are likely contributing to fewer filed claims. At the same time, plaintiff attorneys have become more selective, focusing on cases with greater damages potential. The result is a liability landscape where fewer claims are being filed, but the financial impact of those that proceed continues to grow.

What has changed since 2023 is not the headline itself, but the forces driving it. From social inflation and legislative reforms to shifting jury sentiment and strict case screening, today’s risk environment is influenced by factors that extend well beyond the clinical setting.

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Social Inflation Has Moved to Center Stage

One of the most significant developments since 2023 is the growing emphasis on social inflation as a driver of medical malpractice severity. Today, greater attention is on broader economic and societal pressures that impact litigation outcomes. These include:

• Rising litigation expenses: Higher expert witness, discovery and trial costs are making cases increasingly expensive to pursue.
• Rising healthcare costs: As the cost of treatment and care rises, so does the value of those claims.
• Larger jury awards: Jurors are more willing to award larger damages, particularly in cases involving severe injuries, long-term disabilities or emotionally compelling circumstances.
• Expanding liability expectations: Multi-million-dollar verdicts that were once rare are becoming more common.

Legislative and Judicial Changes Are Reshaping Risk

The 2026 findings reveal that legislative and judicial developments may sway both litigation behavior and claim values, potentially affecting malpractice exposure more than it had previously. In several states, lawmakers and courts are debating policies that can modify how claims are litigated and how damages are awarded.

For example, Colorado passed HB24–1472, which increased noneconomic damage caps over time and expanded recovery opportunities in wrongful death cases. California continues to implement changes to MICRA (Medical Injury Compensation Reform Act of 1975) that increases allowable damages, while Georgia enacted tort reform legislation to address concerns around litigation and large verdicts.

These developments may not immediately alter claim frequency, but they highlight a broader trend: malpractice risk is becoming local, requiring providers to consider both national trends and state-specific dynamics.

Larger Verdicts Are Becoming More Common

The combination of jury sentiment and strict case screening may be contributing to a rise in large verdicts and settlements.

Jury Sentiment

In recent years, multi-million-dollar awards have become more common. One explanation is that juries may be becoming less sensitive to large dollar amounts than they were in the past. In an environment where billion-dollar corporate valuations, major settlements and high-profile verdicts regularly make headlines, large awards no longer seem as extraordinary as they once did.

Case Screening

Already influencing claim frequency in 2023, case screening appears even more pronounced today. National data shows that nearly two-third of malpractice claims are dismissed, dropped or withdrawn, and fewer than 10% ultimately proceed to trial.

As litigation costs escalate, plaintiff attorneys are changing how they build their caseloads and are more selective about the cases they pursue, focusing on those involving catastrophic injuries, long-term care needs or substantial economic damages.

When litigation becomes concentrated around higher-value cases, larger settlements and verdicts become more likely.

What Hasn’t Changed for Healthcare Leaders

While providers cannot control jury sentiment, legislative changes or economic forces, they can strengthen the practices that remain the most effective in reducing liability exposure and improving patient outcomes. Healthcare organizations should maintain their focus on a few key fundamentals.

• Proactive malpractice risk management helps identify risk early and prevent avoidable harm.
• Strong physician-patient communication fosters trust and helps lessen the likelihood of unexpected outcomes escalating into disputes.
• Thorough documentation supports defensibility when claims occur.
• Meaningful, informed consent discussions set expectations and decrease misunderstandings.

Looking Ahead

While the core medical malpractice trend is familiar, the environment surrounding it is becoming more complex. Legislative activity, judicial decisions and social inflation are influencing how claims are filed, litigated and resolved.

As these factors remain foundational, healthcare leaders may find that national trends alone are no longer enough to understand risk exposure. Local legal environments, policy changes and litigation patterns can have a noteworthy impact on how malpractice risk is experienced from one state to the next.

At MagMutual, we continue to monitor the trends shaping today’s medical liability landscape. Preview the interactive 2026 Risk Environment Reports and sign up to be among the first to access the reports when they launch. PolicyOwners and agents will receive the reports via email, and they will also be available in MyMagMutual.