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It drives costs up by its impact on insurance premiums. A doctor or hospital must have insurance to protect against being held liable for all the exposures that are part of what they do. Therefore the rates they charge need to include that expense along with everything else like rent, utilities, supplies, payroll etc.

That is why OB/GYNs are in short supply. The threat of liability is so high because jurys like to blame doctors when a child is born less than perfect and award millions of dollars in damages.. Therefore the cost of malpractice insurance is very high. Consequently they much charge more to pay that high premium.

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