Evaluating the Economic and Financial Losses of an Injured Plaintiff

When you are injured as a result of medical malpractice, you may suffer from economic and financial losses.

Medical malpractice nearly always results in economic and financial losses, but advancements in technology and new corporate financial methods have allowed these economic losses to be recorded properly. These losses can be categorized into three groups: initial loss due to the incident, intermediate or long-range financial loss, and lost opportunities due to disability resulting from the incident.

Initial Loss

The initial loss will include the following:

• Loss of income and wages due to the incident.
• Cost in connection to partial or full recovery from the incident.
• Expenses associated with the treatment of the injury, including transportation, medical expenses, special equipment, and personnel support.
• Special losses, including interest lost after dispensing funds for special items.

Intermediate or Long-Term Loss

• The decline in income or wages of the individual due to the incident. The income and wages of an individual are typically calculated starting from the day of the incident until the 65th birthday of the individual. Inflation rate is also included in the loss of income during this period. The inflation rate should be tenable and realistic since costs, prices, and benefits have the tendency to change in a short time period.

The low inflation rate that is currently prevalent in the United States should not be used in the calculation due to two main reasons:

1. The inflation rate is expected over the next ten years to eliminate or deal with the debt obligations of the United States, which currently has a high level of federal debt.
2. The inflation rate for medical care in the US has exceeded the total inflation rate of the last ten years.

Due to this, it is recommended that the inflation rate to be used in the calculation is a possible future rate instead of a past rate.

Lost Opportunities

This opportunity loss is the most neglected segment. It is a loss in potential growth and prosperity of the individual. For instance, an injury to an assistant manager in his 30s will affect his or her capability of developing and becoming a full manager. The loss will be doubled since it will include:

1. Loss of part or full future wages.
2. Loss in the capability of developing and earning additional wages as a part of the next higher level in society.

The lost opportunities category involves considerable economic implications. The wage of a mid-level supervisor normally increases based on overall performance. If the performance of the supervisor continues to be consistent, he or she will continue to receive wage increases and promotions. However, an incident will affect these potential wage increases and promotions, which is a lost opportunity for additional income.

It is not possible to simply plot the loss of potential income or wages due to an incident into a computer to produce a single figure based on a constant inflation rate. It is essential to break the loss into the three categories and each category is evaluated individually.

If you have been a victim of medical malpractice, call Zevan and Davidson Law Firm at (314) 588-7200 for legal guidance.

[maxbutton id=”1″]

Photo credit: en.wikipedia.org via Google