Billions Paid in Medical Malpractice Payouts Each Year

When medical errors happen, the consequences can be devastating. For patients and families, a medical malpractice claim isn’t about winning the lottery. It’s about recovering the financial and emotional losses caused by negligence. Each year, billions are paid out to victims across the United States.

In 2024, malpractice payouts reached more than $5.04 billion, and in 2025 so far, payouts have already climbed to $2.12 billion. These numbers tell a powerful story about the cost of preventable mistakes in the healthcare system.

What Factors Influence Medical Malpractice Payouts?

Unlike auto accidents, where damages often follow predictable formulas, medical malpractice cases are far more complex. There’s no set payout for “misdiagnosing cancer” or “surgical error.” Instead, every claim is evaluated individually.

Victims may recover both economic damages (medical bills, surgeries, rehabilitation, and lost wages) and non-economic damages (pain, suffering, and emotional distress). The severity of the injury, the long-term impact on the patient’s life, and the strength of the evidence all shape the outcome. Testimony from medical experts and the skill of the attorney also play a major role.

Another key factor is geography. The federal government caps non-economic damages at $250,000 in certain cases, and many states have their own additional limits. These laws often restrict compensation, even in situations where a patient’s suffering is immense.

Medical Malpractice Payouts Across the U.S.

Data from the National Practitioner Data Bank (NPDB) shows that in 2024, there were 11,600 malpractice cases nationwide, resulting in more than $5.04 billion in payouts. That averages to about $460,000 per case.

But averages can be misleading. Some states consistently award much higher compensation than others.

For example, the District of Columbia had an average payout of $1.12 million per case, while Vermont’s average was only $102,000. Factors such as cost of living, healthcare expenses, and state malpractice laws all contribute to these wide gaps.

The States with the Highest Payouts

Some states stand out for their large malpractice settlements and verdicts:

New York topped the list in 2024, with $594.17 million in payouts across 1,282 cases. Over the past decade, payouts in New York totaled nearly $7 billion.

Pennsylvania followed closely, paying out $557.14 million in 2024.

California and Florida also ranked high, each with more than $300 million in payouts.

These states not only have large populations, but also busy healthcare systems where mistakes are more likely to happen—and litigation is more active.

The States with the Lowest Payouts

At the other end of the spectrum, several states had minimal malpractice payouts in 2024:

North Dakota: Just 8 cases, totaling $1.28 million.

Wyoming: 10 cases, $1.59 million in payouts.

Vermont: 28 cases, totaling only $2.86 million.

Puerto Rico also stood out, with 156 cases but only $8.28 million in payouts, averaging just $53,000 per case. Lower payouts often reflect stricter caps on damages, smaller populations, or a less litigious climate.

The Role of State Caps on Damages

Many states place limits on what victims can recover, especially for non-economic damages.

States like Texas, California, Colorado, and Wisconsin all have restrictions in place, though the details vary. Some states cap only pain and suffering, while others cap punitive damages as well.

Critics argue that these caps unfairly protect doctors and insurers at the expense of patients, particularly those who suffer lifelong disabilities.

For example, a young patient who loses mobility due to negligence may face decades of lost income and medical care, but state-imposed caps could drastically limit their recovery.

Which Medical Specialties See the Largest Settlements?

Not all malpractice claims are equal. Some specialties see significantly higher payouts:

Mental health professionals: $6.03 million (though skewed by a few unusually large cases).

Emergency physicians: $3.26 million.

OB-GYNs: $2.21 million.

Surgeons: $1.56 million.

Claims that go all the way to trial often result in even higher jury verdicts, frequently reaching $1 million or more.

What These Numbers Mean for Patients

Behind every statistic is a person whose life has been disrupted by medical negligence. The numbers show that geography, legal limits, and the type of injury all influence the outcome of a claim.

For patients, this means that two people with similar injuries could see vastly different compensation depending on where they live.

The data also highlights how important it is to have strong evidence and skilled legal representation. A knowledgeable medical malpractice attorney can help navigate state-specific laws, present compelling expert testimony, and push back against insurance company tactics designed to minimize payouts.

For anyone affected by malpractice, understanding the numbers is only part of the story. The real battle is ensuring that victims receive the compensation they need to rebuild their lives.