economics Paradigm Challenge

When the budget is in a tailspin, some argue the law should make it way harder for patients to sue hospitals for mistakes.

March 25, 2026

Original Paper

Medical liability Under Limited Resources: A Law and Economics Perspective

Michael G. Faure, Louis T. Visscher

SSRN · 6462983

The Takeaway

Usually, when a system is struggling, we assume we need stricter rules to protect patients. This research argues that in resource-constrained environments, reversing the burden of proof to favor doctors is the only way to keep the legal system from bankrupting the healthcare infrastructure.

From the abstract

This paper presents an analysis of how limited resources in healthcare should affect medical liability. This has become a significant intellectual question in the debate on how to construct an efficient medical liability system. The question has, moreover, received a lot of attention where healthcare systems face increasing pressure from budget constraints. This was especially the case during the COVID-19 period. In the paper an economic perspective is used to address this fundamentally normativ