High Malpractice Costs Strain Florida Medical Services
Elevated settlement rates in Florida contribute to rising insurance costs and the closure of maternity wards statewide.
Updated on Oct. 24, 2026 in Nursing Jobs
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Medical malpractice payouts in Florida currently exceed the national average rate by 74 percent, according to data from 2021 to 2025. This financial pressure has led to a significant increase in insurance premiums, affecting physician retention and hospital services.
Why it matters
High insurance costs force many doctors to practice defensive medicine to mitigate litigation risks, which contributes to a critical shortage of maternity services. Nearly half of the state's obstetricians and gynecologists intend to stop delivering babies within two years.
Florida physicians pay 84% more for malpractice insurance than their counterparts in other states, with the average settlement reaching $304,000. These costs contribute to nearly 20 hospital maternity service closures across the state since 2019.
The players
Ron DeSantis
He is the Governor of Florida who serves as the state's chief executive and signed the veto regarding the wrongful death law repeal.
The details
Physicians frequently order additional tests and procedures to create a comprehensive paper trail to avoid lawsuits, a practice utilized by 88% of state doctors. Insurers adjust these premiums based on historical jury award patterns and the concentration of high-risk medical specialties.
Timeline
1990: Florida Statute 768.21 was originally enacted.
2019: The state began seeing widespread maternity service closures.
2021-2025: This period served as the study scope for malpractice payment data.
May 2025: Governor Ron DeSantis issued a veto against the repeal bill.
October 2025: Legislative action on HB 6003 remained pending.
Market Landscape
This trend of physician shortages and service closures follows the regulatory framework established by Florida Statute 768.21. The current climate forces a consolidation of medical resources as hospitals struggle to maintain specialized care amidst rising litigation-related overhead.
Residents may face increased difficulty accessing specialized maternity care, particularly in regions like Okeechobee County where services have been reduced. Additionally, the high costs of malpractice litigation are estimated to add an annual $1,100 burden per Florida household.
The takeaway
The intersection of high malpractice settlement rates and restrictive wrongful death statutes creates a challenging environment for healthcare providers in Florida. Patients should be aware of how these economic pressures impact the local availability of essential medical services.
Further reading
Learn more about the state's healthcare professional climate in the Nursing Jobs section.
More information
Access the Florida Department of Health provider lookup to review current medical staffing information.
Source note: This article includes information reported by Live Insurance News.
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Should states cap medical malpractice payouts to lower healthcare costs for patients?
