APRIL 2024 NEWSLETTER: IS COMPENSATION BAD FOR HEALTH?

Studies link compensation to worse health outcomes, but quality issues in evidence necessitate cautious interpretation.

A quick literature search looking at the impact of compensation on traumatic injury yields several primary studies and review articles that link poor health outcomes to compensation. A meta-analysis1 published in the Journal of the American Medical Association (JAMA) showed that the presence of compensation (workers’ compensation with or without litigation) was associated with a worse outcome after surgery. Another study2 published in the New England Journal of Medicine (NEJM) showed that the elimination of compensation for pain and suffering was associated with an improved prognosis of whiplash injury. The authors of the NEJM article suggested that legislators should consider removing payments for pain and suffering from compensation systems. Considering the influence research has on the practice of health professionals, insurers, and policymakers, this could impact real-world compensation for clients.

As legal and health professionals, the idea that the time and energy we invest in getting clients the financial award they need to cover the costs of their medical care and emotional distress can lead to worse health outcomes feels like a personal affront.

Upon further review of the literature, I discovered a meta-analysis3 examining the quality of the studies looking at compensation and health outcomes. It found that the reviews often failed to assess the quality of the primary literature (which often contained serious methodological limitations) and combined clinically heterogeneous studies. This produces results that are difficult to interpret and generalize to other populations.  For example, the JAMA meta-analysis uses heterogeneous (and often retrospective) observational studies to draw conclusions, which should be interpreted with caution. It also combined heterogeneous compensation pathways. Within their own conclusion, the authors stated that “because data were obtained from observational studies and were not homogeneous, the summary effect should be interpreted with caution.”

Upset family looking at medical expenses

The meta-analysis identified one well-conducted systematic review (focusing on one legal process and on health outcome measures), which showed no association between litigation and poor health outcomes among people with whiplash. This contradicts the hypothesis that compensation contributes to poorer health status. Ultimately, the meta-analysis concluded that it was impossible to confirm or refute whether compensation was associated with poor health and cautioned against changing the availability of injury compensation until consistent, high-quality evidence was available.

THE TAKEAWAY

As legal and medical professionals, we work hard to help our patient-clients to regain quality of life after traumatic experiences. We will continue to do right by them and use the research to improve their health outcomes. For each case, we will strive to minimize unintended harm while maximizing settlement outcomes.

LET US KNOW HOW WE CAN HELP YOU

  • Medical Summary Reports for Settlement Letters
  • IME Observation & IME Rebuttal Reports
  • Reports Answering Specific Medical Questions
  • Standard of Care Reviews
  • Liaison with Treating Doctors
  • Help with Strategies to Promote Medical Theories
  • Interpretation of Meaning, or lack thereof, of Medical Reports and Records 
  • Independent Record Reviews
  • Assessment of Case Validity Regarding Medical Issues
  • Referral to Expert Medical Witnesses
  • Medical Research
  • Facilitation of Communication with Clients, Families and Professionals
  • Facilitation of Communication with Service and Governmental Agencies
  • Case Coordination
  • Deposition & Trial Question Preparation
  • Table-side Deposition & Trial Assistance 
  1. Harris, I., Mulford, J., Solomon, M., van Gelder, J. M., & Young, J. (2005). Association between compensation status and outcome after surgery: a meta-analysis. JAMA293(13), 1644–1652. https://doi.org/10.1001/jama.293.13.1644 ↩︎
  2. Cassidy, J. D., Carroll, L. J., Côté, P., Lemstra, M., Berglund, A., & Nygren, A. (2000). Effect of eliminating compensation for pain and suffering on the outcome of insurance claims for whiplash injury. The New England journal of medicine342(16), 1179–1186. https://doi.org/10.1056/NEJM2000042034216 ↩︎
  3. Spearing, N. M., & Connelly, L. B. (2011). Is compensation “bad for health”? A systematic meta-review. Injury, 42(1), 15–24. https://doi.org/10.1016/j.injury.2009.12.009 ↩︎