The tort system exists to allow people who have been injured or wronged in some way to obtain relief through the legal system. The answer is difficult, and when addressing the subject of tort system modification as applied to medical malpractice, the answer becomes even more complicated. The tort system is oriented to designation of fault. By nature, the tort system is an adversarial process with significant judgmental elements involved. Excesses can and do occur.
Tort reform attempts to deal with real or perceived excess.
Tort reform calls for modification of the tort system, or change in the law to address a perceived wrong or excess. In the mid-1970s, there was a significant increase in the number of medical malpractice cases filed and adjudicated. In response, insurers tightened their belts by modifying underwriting rules, expanding risk management, and ultimately raising prices in an attempt to pay for the losses. Insurance companies were unable to adjust premiums prior to the increased demand for massive increases in awards in medical injury cases. A destabilized medical liability insurance market resulted and two major insurance carriers failed to renew coverage for Southern California physicians in 1975.