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Medical costs could be reduced by a heck of a lot more than $54 billion over 10 years if doctors merely didn't commit malpractice.
You either have faith in the jury system or you don't. False limits on compensation for damages -- which include lost and ruined lives -- are absurd.
The problem is, you have some poor guy, with a bad heart, who will likely die in a matter of months, go under the knife for heart surgery and die in two years, instead...he files a lawsuit, the doctor and insurers pay a half million in costs/expenses defending it, and end up throwing the family $50,000 to go away....
It's that type of stuff tort reform would eliminate.
You can't trust juries.....(see hot coffee at McDonalds case)...It's too risky to take certain cases in front of jury, even though you might have a "belt and suspenders" defensible case. Sympathy and (I'm not being political here) "redistribtuion of wealth" often drive a jury award.
I don't believe bars/restaurants should be held liable for a customer drinking too much (especially if that customer is a "responsible" adult), yet juries ignore the facts and go after deep pockets.
There are some doctors and health care professionals that screw up. Those people should be punished and barred from treating the public. The case of the doctor in Cambridge that you mentioned is a good example. Far too many doctors, however, are sued for stupid things that are not their fault. A good case is C2TC's example. Another good example is a crack and/or meth addicted woman who walks into a hospital to deliver a babay. Let's say she didn't have any medical care during her pregnancy. The doctor delivers her baby and despite efforts, the baby dies from respiratory arrest. The mother then sues the doctor, hospital, and everyone else involved in the care. If the doctor followed protocol, why should s/he be held liable for this baby's death?
There are far too many doctors, especially in the OB/GYN field, that are sued over things that are out of their control. Out of all the medical professionals, OB/GYNs pay the most for liability insurance. And we wonder why so many doctors are leaving the field...