Authors
Donald K. Emmerson
News Type
News
Date
Paragraphs

The United States and the ASEAN group of nations have further strengthened political, economic and security ties, after their second full-scale summit in New York.

President Barack Obama said the Association of Southeast Asian Nations, which groups ten countries, had the potential for true world leadership. President Obama also made it clear that he saw Asia as a vital plank of US foreign policy.

DR EMMERSON: In the run-up to the summit, there was a big question. Would the partnership be declared as being strategic in nature? That was a key word in the discussion and what happened was the leaders basically finessed the issue. It's not hard to suspect that they worried that if they declared a strategic partnership with the United States, this would cause alarm in Beijing. Because let's remember in the run-up to this summit, we've had a lot of activity - the split between China and Japan over the disputed islands, one could continue with some evidence of a more muscular Chinese foreign policy, its commitment to its claim to possess basically the entire South China Sea, escalating that to the level of a core interest, presumably equivalent to their interest in recovering Taiwan. I could go on, but in many case, it was understandable that the subtext of the meeting was what will China think? So basically what the summit did was to finesse the issue. They decided to pass on the question of raising the partnership to quote - a strategic level - unquote, to the ASEAN US Eminent Persons Group, presumably expert advisors that would be convened and would make recommendations down the road.

And one of the most remarkable things about the statement was how much ground it covered. I mean, among the topics and issues that the leaders committed themselves to do something about, were 14 as I count them, 14 different subjects. Human rights, educational change, trade and investment, science, technology, climate change, interfaith dialogue, disaster management, illicit trafficking, international terrorism, I could go on. So it is clear to me that one of the tasks that ASEAN and the US will have to face in the coming months, is to try to insert some sense of priority.

LAM: On that issue of priority, the US President, Barack Obama, of course, postponed a couple of visits to Indonesia due to pressing domestic demands. Did he in anyway express American commitment to the ASEAN region?

DR EMMERSON: Yes, this was particularly kind of, I suppose you could say, evident in the fact that the meeting occurred at all, finally it was organized. It lasted two hours. He was apparently quite engaged and engaging during that period of time. And I think there is no question that the United States under his administration is committed to South East Asia as a region, indeed has agreed with the leaders of ASEAN, that ASEAN should play a central role in the process of building regional cooperation in East Asia.

LAM: And, of course, one of the topics that came up as well was the South China Sea, that entire region, given the competing maritime and territorial claims vis-à-vis the Spratley and Paracel Island groups. Do you think China is watching the US relationship with ASEAN, this growing relationship - do you think Beijing might be watching it with unease?

DR EMMERSON: Yes, absolutely. I am confident that they are watching it with considerable unease and I note that the statement that the leaders made, made no reference whatsoever to the South China Sea, presumably because of sensitivity with regard to Beijing's possible reaction. The topic was implicitly mentioned, but not explicitly.

LAM: And what about within ASEAN, the grouping itself? The UN Secretary-General, Ban Ki-moon, on the weekend said that the ASEAN nations' credibility might suffer if they did not take a tougher line with Burma and this is in view of the upcoming elections in November. This is presumably directed at specifically China and India, but it could also be referenced to ASEAN could it not, because Burma is a member of ASEAN. Do you see that changing anytime soon with ASEAN, that ASEAN countries, leading members like Indonesia, Malaysia, Singapore, that they might take a stronger stand with the military junta in Rangoon?

DR EMMERSON: The election in Myanmar, if I can call it an election, since it will be highly compromised and manipulated will take place, at least is scheduled to take place November 7th. Indonesia does not take over the chairmanship of ASEAN until the 1st January. So the question is, since Indonesia is a democratic country, arguably, the most democratic of any country in South East Asia, will it use its opportunity to try to put pressure on Burma in the year 2011? My own view is that ASEAN will probably not fulfill Ban Ki-moon's hope, will not exercise significant pressure on the junta. Instead, we could get the opposite situation in which so long as there is not major violence associated with the election, it will essentially be received by ASEAN as a kind of minimally-acceptable basis for assuring the Burmese junta that ASEAN still treats them as a full member. In other words, it's quite possible that the junta may get away with what I take to be a kind of facade effort to legitimate their rule.

Hero Image
D Emmerson headshot2
Donald K. Emmerson, director of the Southeast Asia Forum
All News button
1
-

Professor Lee will examine why South Korean labor unions have engaged in militant activism since the country's transition to democracy in 1987.  This situation contrasts with Taiwan, to which Korea's economic and political development is otherwise very similar.   Professor Lee will argue that the militant unionism reflects the weakness of Korea's democratic institutions, particularly its political parties.

Professor Lee received her doctoral degree in political science from Duke University and has been teaching at the State University of New York at Binghamton since 2006.  Her research has appeared in Studies in Comparative International Studies, Critical Asian Studies, Asian Survey, Korean Observer, and Asia-Pacific Forum.  Her book, tentatively entitled Democratic Politics and Labor Activism in East Asia, is forthcoming from Stanford University Press in 2011.

Philippines Conference Room

Yoonkyung Lee Assistant Professor, Sociology and Department of Asian and Asian-American Studies, State University of New York at Binghamton Speaker
Seminars
News Type
News
Date
Paragraphs
A new AHPP working paper contributes to an important debate in law and health policy

Malpractice liability, along with medical technology and payment system distortions, regularly figures among the most-cited reasons for escalating health-care spending in the United States. On the one hand, Harvard economist Amitabh Chandra conservatively estimates that upwards of $60 billion, or 3 percent of total health care costs ($1.8 trillion), is spent annually as a result of direct litigation and indi­rect defensive medicine costs. On the other hand, tort reform advocates place the figure at $200 billion by extrapolating, to the entire U.S. population, the results of research conducted by Stanford professor Dan Kessler and Mark McClellan. Their 1996 study shows that tort reforms reduced provider liability costs for Medicare heart patients by 5 to 9 percent.

 

At the heart of these debates is the following question. Does medical malpractice liability achieve its dual goal of compensating victims of medical injuries and deterring medical errors, or does it merely encourage wasteful defensive medicine without improving patient health? Despite considerable empiri­cal research, there is little evidence that malpractice litigation deters medical negligence. The evidence is much stronger—though still hotly debated—that malpractice fears actually encourage physicians to engage in defensive medicine.

 

The newest release in the Asia health Policy Program working paper series, AHPP working paper #13 by Brian Chen, explores whether malpractice pressures affect physician behavior, patient health, and health care costs in Asia. Studying physicians’ response to legal changes in Taiwan, he finds that greater malpractice liability may, under certain circumstances, prompt physicians to perform more services without necessarily improving patient health.

 

Dr. Chen investigates how physicians’ test-ordering behavior and propensity to perform cesarean sections were affected first by a series of court rulings in Taiwan that increased physicians’ liability risks, and then by a subsequent amendment to the law that reversed the courts’ rulings. He finds that physicians faced with higher malpractice pressure increased laboratory tests as expected but unexpectedly reduced cesarean sections. The reduction in cesarean deliveries may be due to the fact that liability risks were more closely aligned with physicians’ standard of care after the court rulings. After the law was amended to negate the court decisions, physicians reversed their previous behavior, reducing laboratory tests and increasing cesarean deliveries. This pattern of behavior strongly suggests that physicians in Taiwan practice defensive medicine.

All News button
1

The symposium will bring together scholars and current and former government officials from Taiwan, China, and US to take stock of cross-strait relations over the past decade. It will also assess the future development of cross-strait interactions from different angles including economic, political, and security perspectives.

Friday, May 28, 2010

8:00 am to 8:30 am

Registration & Reception
Continental Breakfast

8:30 am to 8:40 am

Introduction Larry Diamond, Director of CDDRL; Senior Fellow of Hoover Institution and FSI, Stanford University

8:40 am to 10:15 am

Session I: What Can We Learn from History: Looking Back on the Evolution of U.S.-China-Taiwan Relations

Chair: Hung-mao Tien, President of the Institute for National Policy Research, Taiwan

Speakers:

  • Steve Goldstein, Sophia Smith Professor of Government, Smith College, and Associate, Asia Center, Harvard University
  • Tom Christensen, Professor of Politics and International Affairs and Director of the Princeton-Harvard China and the World Program, Princeton University
  • Richard Bush, Director, Center for Northeast Asian Policy Studies, and Senior Fellow, the Brookings Institute

10:15 am to 10:30 am

Break

10:30 am to 12:00 pm

Session II: Cross-Strait Economic and Social Ties: Current Trends, and What Will They Look Like in 2025

Chair: Yun-han Chu, Distinguished Fellow of the Institute of Political Science, Academia Sinica; Professor of Political Science, National Taiwan University

Speakers:

  • Cheng-shu Kao, Professor of Sociology, Tung-hai University, Taiwan
  • Charles Kao, Founder and Chairman, Commonwealth Publishing Group, Taiwan

Noon to 1:30 pm

Luncheon Address and Discussion—Assessing the First Two Years of the Ma Ying-jeou Presidency: A Conversation with Dr. Su Chi,” former secretary-general of the National Security Council, Republic of China (Taiwan)

 

1:45 pm to 3:15 pm

Session III: The Changing Military Balance: Current Trends and Future Prospects

Chair: Larry Diamond, Director, CDDRL

Speakers:

  • Admiral (Ret.) Eric McVadon, Director, Asia-Pacific Studies, Institute of Foreign Policy Analysis, Cambridge MA, and Washington DC
  • Chong-Pin Lin, Professor of Graduate Institute of International Affairs and Strategic Studies, Tamkang University; Former Deputy Minister of Defense of ROC
  • Litai Xue, Research Associate, APARC, Stanford University

3:15 pm to 3:30 pm

Break

3:30 pm to 5:00 pm

Session IV: What kind of (Super) Power will China be in 2025? Political Scenarios and Implications for China’s Foreign Policy and Taiwan Policy

Chair: Tom Fingar, the Oksenberg/Rohlen Distinguished Fellow and Payne Distinguished Lecturer in the Freeman Spogli Institute for International Studies, Stanford University

Speakers:

  • Mike Lampton, Dean of Faculty, School of Advanced International Studies (SAIS), and Professor of Chinese Studies, Johns Hopkins University
  • Suisheng Zhao, Professor and Executive Director of the Center for China-US Cooperation at the Graduate School of International Studies, University of Denver

 

Saturday, May 29, 2010

8:30 am to 9:00 am

Continental Breakfast

9:00 am to 10:40 am

Session V: How will Taiwan (Re)Define Itself Politically, Economically and Internationally by 2025

Chair: Jean Oi, William Haas Professor in Chinese Politics, and Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University

Speakers:

  • Yun-han Chu, Distinguished Fellow of the Institute of Political Science, Academia Sinica; Professor of Political Science, National Taiwan University; President of the Chiang Ching-kuo Foundation for International Scholarly Exchange
  • Shelley Rigger, Brown Associate Professor of East Sian Politics, and coordinator of Asian Studies, Davidson College
  • Daniel Da-nien Liu, Research Fellow, Chung-hua Institution for Economic Research, Taiwan
  • Richard Bush, Director, Center for Northeast Asian Policy Studies, and Senior Fellow, the Brookings Institute

10:40 am to 11:00 am

Break

11:00 am to 12:40 pm

Session VI: How will the U.S. Relate to China’s Rising Power and Taiwan’s Rising Vulnerability

Chair: Larry Diamond, Director, CDDRL

Speakers:

  • Tom Fingar, the Oksenberg/Rohlen Distinguished Fellow and Payne Distinguished Lecturer in the Freeman Spogli Institute for International Studies, Stanford University
  • Su Chi, former secretary-general of the National Security Council, Republic of China (Taiwan)

12:40 pm to 1:45 pm

Lunch

1:45 pm to 3:15 pm

Roundtable Conclusion

Bechtel Conference Center

Symposiums
-

In this conversation, former Secretary General of National Security Council, Republic of China (Taiwan), Su Chi, and Director of CDDRL, Larry Diamond, will engage in a conversation about the first two years of President Ma Ying-jeou's administration.  The topics to be explored will include President Ma’s performance in domestic, international and cross-strait policy; the trajectory of the complicated triangular relationship among Taiwan, China, and the United States; domestic political trends in Taiwan; and the ruling Kuomintang (KMT) Party’s future political prospects as Taiwan looks toward special municipal elections at the end of this year and then a presidential election in March of 2012.

Serving as Secretary General of National Security Council between May 2008 and February 2010, Dr. Su Chi was widely considered one of President Ma’s closest and most trusted advisers since the KMT returned to power in 2008.  A prominent political scientist, Dr. Su began his government career in 1989 as Secretary General of the President’s Office. In 1993-94, he was appointed Commissioner of the Research, Development and Evaluation Commission,  Executive Yuan. In 1993-96, he was Vice Chairman of the ministerial-level Mainland Affairs Council, Executive Yuan. He was then appointed Director-General of the Government Information Office in 1996-97. Between 1997 and 1999, Dr. Su was Deputy Secretary-General to President Lee Teng-hui. In 1999-2000, he served as the Chairman of the Mainland Affairs Council. Between 2005 and 2008, he was a KMT Legislator.

Dr. Su Chi obtained his MA and Ph.D. in Political Science from Columbia University, MA in International Studies from the Johns Hopkins University, and BA in National Chengchi University (Taiwan).

 

 

Oksenberg Conference Room

Su Chi Former secretary general of the National Security Council, Republic of China (Taiwan) Speaker

CDDRL
Stanford University
Encina Hall, C147
616 Jane Stanford Way
Stanford, CA 94305-6055

(650) 724-6448 (650) 723-1928
0
Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies
William L. Clayton Senior Fellow at the Hoover Institution
Professor, by courtesy, of Political Science and Sociology
diamond_encina_hall.png MA, PhD

Larry Diamond is the William L. Clayton Senior Fellow at the Hoover Institution, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. He is also professor by courtesy of Political Science and Sociology at Stanford, where he lectures and teaches courses on democracy (including an online course on EdX). At the Hoover Institution, he co-leads the Project on Taiwan in the Indo-Pacific Region and participates in the Project on the U.S., China, and the World. At FSI, he is among the core faculty of the Center on Democracy, Development and the Rule of Law, which he directed for six and a half years. He leads FSI’s Israel Studies Program and is a member of the Program on Arab Reform and Development. He also co-leads the Global Digital Policy Incubator, based at FSI’s Cyber Policy Center. He served for 32 years as founding co-editor of the Journal of Democracy.

Diamond’s research focuses on global trends affecting freedom and democracy and on U.S. and international policies to defend and advance democracy. His book, Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency, analyzes the challenges confronting liberal democracy in the United States and around the world at this potential “hinge in history,” and offers an agenda for strengthening and defending democracy at home and abroad.  A paperback edition with a new preface was released by Penguin in April 2020. His other books include: In Search of Democracy (2016), The Spirit of Democracy (2008), Developing Democracy: Toward Consolidation (1999), Promoting Democracy in the 1990s (1995), and Class, Ethnicity, and Democracy in Nigeria (1989). He has edited or coedited more than fifty books, including China’s Influence and American Interests (2019, with Orville Schell), Silicon Triangle: The United States, China, Taiwan the Global Semiconductor Security (2023, with James O. Ellis Jr. and Orville Schell), and The Troubling State of India’s Democracy (2024, with Sumit Ganguly and Dinsha Mistree).

During 2002–03, Diamond served as a consultant to the US Agency for International Development (USAID) and was a contributing author of its report, Foreign Aid in the National Interest. He has advised and lectured to universities and think tanks around the world, and to the World Bank, the United Nations, the State Department, and other organizations dealing with governance and development. During the first three months of 2004, Diamond served as a senior adviser on governance to the Coalition Provisional Authority in Baghdad. His 2005 book, Squandered Victory: The American Occupation and the Bungled Effort to Bring Democracy to Iraq, was one of the first books to critically analyze America's postwar engagement in Iraq.

Among Diamond’s other edited books are Democracy in Decline?; Democratization and Authoritarianism in the Arab WorldWill China Democratize?; and Liberation Technology: Social Media and the Struggle for Democracy, all edited with Marc F. Plattner; and Politics and Culture in Contemporary Iran, with Abbas Milani. With Juan J. Linz and Seymour Martin Lipset, he edited the series, Democracy in Developing Countries, which helped to shape a new generation of comparative study of democratic development.

Download full-resolution headshot; photo credit: Rod Searcey.

Former Director of the Center on Democracy, Development and the Rule of Law
Faculty Chair, Jan Koum Israel Studies Program
Date Label
Larry Diamond Director Speaker Center on Democracy, Development, and the Rule of Law
Seminars

Focus

In 2008, for the first time a majority of the world's population lived in cities. Rapidly rising standards of living and migration are contributing to an unprecedented worldwide surge in urbanization--in China alone, if trends continue, by 2025 more than 220 cities will each have more than one million inhabitants. The explosive growth of cities around the Pacific has widespread implications for energy use and has led to the demand for cities to become both smart and green.

But while billions of dollars of investments are pouring into urban energy solutions, and around the Pacific "low-carbon cities" and "eco-cities" are moving center stage, there are enormous challenges (and opportunities) facing the effective application of information technologies (IT), other innovative technologies and industrial growth.

The intersection of IT and environmental sustainability on the urban scale will require a complex integration of expertise, tools, and know-how from multiple disciplines--from building design and real estate development, to mobility and water systems, IT hardware and software, and energy providers. Although innovations in strategies and implementation are evolving quickly in pockets of excellence around the globe, early results have been highly uneven. Frameworks for understanding and analysis are still fragmented, innovative design and implementation rapidly changing, and best practices have yet to be defined.

Purpose
Led by SPRIE at Stanford University, this conference aims to gather an elite group of experts, decision makers, and thought leaders from across disciplines and geographical boundaries to focus on smart green cities around the Pacific. Participants will:

  • Pursue a deeper understanding of the complex interactions among the key drivers that impact the extent that cities are green and smart
  • Focus on core challenges of capitalizing on opportunities and overcoming obstacles--technological, economic, behavioral or political
  • Explore what innovations in strategy or practice are leading to positive outcomes, including human livability, financial viability, economic vitality, and environmental sustainability
  • Discuss implications for the evolution of markets and development of industries 
  • Lay the groundwork for future actions, such as industry strategies, research agendas, and policy recommendations

Participants
"Smart Green Cities" will invite a select group of government, business, and academic leaders from the United States and Asia for two days of expert presentations and fruitful discussion at Stanford University. The summit will enable participants to better lead to improved strategy, action, and outcomes for building the next generation of smart green cities.

Agenda
Agenda is preliminary and not all speakers are confirmed. Please download below

 

Sponsors
Many thanks to our sponsors for making this event possible. 

Image
itri logo

 

Image
cisco web

 

Image
sie logo web

Stanford Institute for Economic Policy Research (SIEPR)
John A. and Cynthia Fry Gunn Building
366 Galvez Street
Stanford, CA

Conferences
-

The extent and existence of "defensive medicine" -- excessive medical care to defend a physician against malpractice claims -- is a perennial subject of both policy and academic debate.  For example, malpractice liability and associated defensive medicine are among the most-cited reasons for escalating health-care spending in the United States.

In this colloquium, Dr. Brian Chen will present results from his research investigating the extent of defensive medicine in Taiwan. He studies the impact of a series of court rulings in Taiwan that increased physicians’ liability risks, and a subsequent amendment to the law that reversed the courts’ rulings, on physicians’ test-ordering behavior and propensity to perform Caesarean sections.  He finds that physicians faced with higher malpractice pressure increased laboratory tests as expected, but unexpectedly reduced Caesarean sections.  (The reduction in Caesarean deliveries may be due to the fact that liability risks were more closely aligned with physicians’ standard of care after the court rulings.) After the law was amended to negate the court decisions, physicians reversed their previous behavior by reducing laboratory tests and increasing Caesarean deliveries.

This pattern of behavior is highly suggestive of the existence of defensive medicine among physicians in Taiwan. In other words, by studying physicians' response to legal changes in Taiwan, we find that greater malpractice liability may, under certain circumstances, prompt physicians to perform more services without necessarily improving patient health.

Dr. Brian Chen recently completed his Ph.D. in Business Administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

Philippines Conference Room

Shorenstein APARC
Stanford University
Encina Hall, Room E-301
Stanford, CA 94305-6055

(650) 736-0771 (650) 723-6530
0
2011 AHPP/CEAS Visiting Scholar
IMG_5703.JPG JD, PhD

Dr. Brian Chen is currently a visiting scholar with the Asia Health Policy Program and Center for East Asian Studies at Stanford University. He was recently Shorenstein Asia-Pacific Research Center's 2009-2010 postdoctoral fellow in Comparative Health Policy. As a visiting scholar, Dr. Chen will conduct collaborative research about health of the elderly and chronic disease in China.

As an applied economist, Chen’s research focuses on the impact of incentives in health care organizations on provider and patient behavior. For his dissertation, Chen empirically examined how vertical integration and prohibition against self-referrals affected physician prescribing behavior. His job market paper was selected for presentation at the American Law and Economics Association’s Annual Meeting, the Academy of Management, the Canadian Law and Economics Association, the Conference on Empirical Legal Studies, and the First Annual Conference on Empirical Health Law and Policy at Georgetown Law Center in 2009.  The paper was also nominated for best paper based on a dissertation at the Academy of Management.

Chen comes to the Shorenstein Asia-Pacific Research Center not only with a multidisciplinary law and economics background, but also with an international perspective from having lived and worked in Taiwan, Japan, and France. He has a particularly intimate knowledge of the Taiwanese health care system from his experience as an assistant to the hospital administrator at a medical college in Taiwan.

During his past residence as a postdoctoral fellow with the Asia Health Policy Program, Chen conducted empirical research on cost containment policies in Taiwan and Japan and how those policies impacted provider behavior. His work also contributed to the program’s research activities on comparative health systems and health service delivery in the Asia-Pacific, a theme that encompasses the historical evolution of health policies; the role of the private sector and public-private partnerships; payment incentives and their impact on patients and providers; organizational innovation, contracting, and soft budget constraints; and chronic disease management and service coordination for aging populations.

Dr. Brian Chen recently completed his Ph.D. in Business Administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

Brian Chen Shorenstein-Spogli Fellow in Comparative Health Policy Speaker
Seminars
-

The question of whether President Ma Ying-jeou will be reelected has already become a hot issue in Taiwan, two years in advance of the next presidential election.  In this special seminar, Professor Ying-lung You, a political scientist and one of the most prominent political strategists in the Democratic Progressive Party (DPP), will analyze the current political and electoral landscape of Taiwan and the possible future trends. Whereas some may argue that the question of Ma’s reelection is a question mark only for those who oppose him, Professor You argues that the reality is rather different. This is particularly so after the ruling KMT party has encountered five consecutive setbacks in the recent elections. In this seminar, Professor You will provide firsthand information about the recent election campaigns in Taiwan. By carefully examining Taiwan’s shifting political landscape, he will give us his prediction about the prospects of both the DPP and the KMT in the 2012 presidential election.

Dr. Ying-lung You received his B.A. and M.A. from National Taiwan University, and his Ph.D. in political science from University of North Carolina, Chapel Hill. In 1995-96, he was executive director of Election Strategy and Campaigning for the DPP. In 1999, he directed election strategy and public opinion polls in the campaign headquarters of then former Taipei City major Chen Shui-Bian, who later won the presidential election in March 2000. In 2000-01, he served as vice-chairman of the Research, Development, and Evaluation Commission of the Executive Yuan. In 2002-03, he served as Deputy Secretary General for the DPP and in 2003-05 as Vice President of the Katagalan Institute. From 2005 to 2008, he served as the vice chairman of the Mainland Affairs Commission of the Executive Yuan and concurrently served as vice Chairman and secretary-general of the Strait Exchanges Foundation, through which positions he was mainly responsible for Taiwan’s Cross-Strait policy making under the DPP administration. His research interests are public opinion, voting behavior, democratization, constitutional choices, and cross-strait relations.  He is the author/editor of 4 books and more than 20 scholarly articles.

Philippines Conference Room

Ying-lung You Professor of Political Science Speaker Soochow University
Seminars
Authors
Brian Chen
News Type
News
Date
Paragraphs

Malpractice liability, along with medical technology and payment system distortions, regularly figures among the most-cited reasons for escalating health-care spending in the United States. On the one hand, Harvard economist Amitabh Chandra conservatively estimates that upwards of $60 billion, or 3 percent of total health care costs ($1.8 trillion), is spent annually as a result of direct litigation and indirect defensive medicine costs. On the other hand, tort reform advocates place the figure at $200 billion by extrapolating, to the entire U.S. population, the results of research conducted by Stanford professor Dan Kessler and Mark McClellan. Their 1996 study shows that tort reforms reduced provider liability costs for Medicare heart patients by 5 to 9 percent.

At the heart of these debates is the following question. Does medical malpractice liability achieve its dual goal of compensating victims of medical injuries and deterring medical errors, or does it merely encourage wasteful defensive medicine without improving patient health? Despite considerable empirical research, there is little evidence that malpractice litigation deters medical negligence. The evidence is much stronger—though still hotly debated—that malpractice fears actually encourage physicians to engage in defensive medicine. My work at Shorenstein APARC explores whether malpractice pressures affect physician behavior, patient health, and health care costs in Asia. Studying physicians’ response to legal changes in Taiwan, I find that greater malpractice liability may, under certain circumstances, prompt physicians to perform more services without necessarily improving patient health.

In particular, I focus on how increased medical malpractice liability affects physicians in Taiwan who provide treatment to pregnant women. I have studied how a series of court rulings as well as an amendment to Taiwanese law between 1997 and 2004 impacted physicians’ test-ordering behavior and decisions to perform Caesarian sections. Traditionally, Taiwanese doctors are held accountable for medical malpractice under two bodies of law: tort law in the Civil Code, and criminal law for harm resulting from negligent acts in the course of professional operations. The latter, prosecutorial approach is rare among industrialized nations.

In January 1998, a Taipei District Court decision in favor of plaintiffs in a civil suit for damages sent shockwaves through the medical community. The district court judge disregarded the traditional tort requirement of proving the defendant’s negligence (or fault), and applied the “strict liability” doctrine of the Consumer Protection Law to impose liability on a medical provider without any showing of wrongdoing. The court decision—subsequently affirmed by the Taipei High Court on September 1, 1999 and by the Supreme Court on May 10, 2001—sparked resentment among medical professionals. Passions flared in heated debates between medical and legal scholars about whether medical services should be considered a covered “service” under the Consumer Protection Law. Economists and legal academics questioned whether the traditional justifications for imposing strict liability apply in the highly unpredictable practice of medicine, especially in obstetrics. The saga concluded in April 2004, when the legislature amended the Medical Law to require negligence or fault in medical malpractice cases.

My research considers the effect of these court rulings and legal amendments on physicians’ test-ordering behavior and their propensity to perform Caesarean sections. I identify two sources of variation in perceived risks of malpractice liability: (1) the differences between the level of exposure to malpractice risks due to the ownership structure and size of the physicians’ place of practice; and (2) the differences in perceived risks based on the physicians’ geographical location.

My results are consistent with the existence of defensive medicine. First, with respect to their propensity to increase laboratory tests and reduce Caesarean sections, physicians who own their clinics (“physician-owners”) in Taiwan reacted more strongly to the legal changes than did physicians who are salaried employees at larger hospitals (“nonowners”). Physician-owners’ behavior did not change, however, in discretionary expenditures that were not associated with defensive medicine. Second, physician-owners working in areas under the jurisdiction of the Taipei District Court reacted more strongly to legal change than did those practicing in Kaohsiung, Taiwan’s second largest city, at the opposite end of the island.

The negative connection between the likelihood of Caesarean deliveries and increased malpractice liability deserves special mention, since most published studies find a positive association between malpractice liability risks and Caesarean rates. However, economists Janet Currie and Bentley MacLeod at Columbia University suggest that reforms in which liability is closely aligned with defendant’s actual levels of care may produce the opposite effect. In the Taiwan context, increased medical malpractice liability accrues directly to the physician-owners. Since Caesarean sections are generally riskier than natural deliveries, it seems logical that higher tort liability in Taiwan may actually decrease the likelihood of deliveries by Caesarean sections. In this sense, my study confirms Currie and MacLeod’s predictions and empirical results.

My work contributes to our understanding of health law and policy in several concrete ways. First, I add support to the existence of defensive medicine, even in a non-Common Law jurisdiction. Since I focus on Taiwan—an environment that lacks malpractice insurance, in which physicians are either owners or employees at providers of varying sizes—my research isolates the pure effect of malpractice liability to a greater extent than do many current studies. Second, I show that interaction between the payment and legal systems may either enhance or mitigate the hypothetical pure effects of legal policies. In a fee-for-service system, physicians subject to higher malpractice risks appear much more willing to increase laboratory tests than to reduce profitable Caesarean sections. Third, my research indicates that, by altering physicians’ exposure to risks, different organizational forms and ownership structures of health care provision may affect defensive medicine at differing rates.

In sum, the practice of “defensive medicine” appears not to be a uniquely American phenomenon. Indeed, it may also play a role in health care cost escalations in Asia, especially under heightened physician liability regimes.

-------------------

Shorenstein APARC Dispatches are regular bulletins designed exclusively for our friends and supporters. Written by center faculty and scholars, Shorenstein APARC Dispatches deliver timely, succinct analysis on current events and trends in Asia, often discussing their potential implications for business.

All News button
1
Subscribe to Taiwan