What Is the Principal-Agent Problem and Why It Matters

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1. 11 July 2026 · corrected by Emir Baycan

   Mello et al. (2010) put total medical liability costs at ~$55.6B; defensive medicine specifically was ~$45.6B of that total.

   Before

   estimated that the cost of defensive medicine in the United States was approximately $55.6 billion per year

   After

   estimated that total annual medical liability costs in the United States were approximately $55.6 billion per year, of which defensive medicine accounted for about $45.6 billion

   Why: Mello et al. (2010) put total medical liability costs at approximately $55.6 billion, of which defensive medicine specifically accounted for about $45.6 billion of that total, not the full $55.6 billion. Verified the live article body already reflects the corrected breakdown. The faq field does not mention Mello or these dollar figures at all, so no secondary fix was needed there.

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