For decades, future medical damages have been driven by the concept that charged rates represent reasonable value. But courts are increasingly recognizing what providers, insurers, and patients have long understood: charged rates often bear little resemblance to what medical care costs in the real world.
In a recent case, we successfully obtained a court order permitting expert testimony addressing the reasonable value of future medical care using market-based pricing benchmarks, without violating the collateral source rule. This created a critical opportunity to challenge the inflated projections contained in the plaintiff’s life care plan and present the jury with evidence grounded in economic reality.
The lesson for defense counsel is clear: charged rates must be challenged strategically and consistently. Our strategy calls for developing expert testimony grounded in real-world pricing, supported by reliable methodology, and presented in a manner that complies with collateral source limitations. Courts are increasingly receptive to reasonable value evidence when properly framed. Our approach focuses on exposing the disconnect between charged rates and actual market value.
This remains a rapidly evolving level issue, and one that can fundamentally reshape the future medical care damages landscape. Stay tuned. Waranch and Brown will continue to monitor developments in charged-rate jurisprudence and provide timely updates to help our healthcare clients navigate the changes with confidence.