If you want to build deeper trust with your doctor clients, you need to understand one of the most painful—but inevitable—parts of their professional lives: what happens when they get sued.
It doesn’t matter how skilled or compassionate a physician is. Lawsuits happen. And when they do, it’s not just a legal matter—it’s an emotional and financial earthquake. As a financial advisor, this is one of the most critical moments to show up, not just as a professional—but as a true ally.
I’ve been there. I was sued by a patient. I’ve also served as a medical expert in litigation. I know what this process does to a doctor. And I know the unique way a financial advisor can bring immense value during one of the lowest points in a physician’s life.
Bad Outcomes Happen
All medical interventions—just like all investments—come with risk. Even if you do everything right, bad outcomes occur.
Before you undergo a medical procedure, a doctor has a conversation laying out the risks and benefits of various options. Your signature on consent form says, “Yes, I know that this could happen. And I agree to undergo the procedure.”
I remember speaking with the family of an elderly woman whom I evaluated in the emergency room. She had an incarcerated hernia. The daughter said, “Thank God; we thought it was cancer.” I said, “Your mother is in a grave situation. She may not have the reserves to pull through this operation.”
Doctors do not promise a perfect outcome. They say, “These things could happen. Here’s what we’re doing to mitigate the risks.”
But bad things do happen. When I was in my surgical training, we had a regular M&M Wednesday meeting. We did not eat candy; we gathered for the morbidity and mortality meeting. We talked about each and every patient who had a bad outcome—including death. The idea is that each member of the community of surgeons could benefit from the lessons taught by each untoward patient outcome.
We as a community defined a standard of care—what a reasonably prudent physician practicing in that community would do in certain situations. This standard of care is not written in stone.
So we have two ideas. We have the idea of the standard of care, and we have the reality of that bad outcomes occur.
The Anatomy of a Lawsuit
In most cases of bad outcomes, the physician complies with the standard of care. Stuff happens.
However, sometimes the standard of care is violated. The wrong medication is administered. The lab test is lost. The doctor does not ask the question that would lead to an earlier diagnosis. In most cases, the patient is not harmed.
However, if there is a violation of the standard of care, the patient is harmed and the harm is a direct result of the violation, now a patient could successfully sue and prevail in a case of medical negligence. All three elements must be proven for a patient plaintiff to prevail.
- There’s violation of the standard of care
- The patient was harmed
- The harm was a direct violation of the standard of care.
Sometimes this is straight forward.
If a follow up x-ray shows a surgical instrument in the patient’s belly, there is obviously a case. Usually, the hospital just settles before going to court.
However, many cases in the gray area. I was once an expert reviewing the records of a patient who wanted to sue her treating doctors for a delay in diagnosis of her breast cancer. She was 22 at the time, and felt a breast lump in the shower. She immediately went to her doctor and said, “I’m worried I have breast cancer.” The record went on to say that the woman had dense breasts with fibrocystic changes. His plan was to reexamine in one month.
In the follow up visit the mass was still there. The patient requested a mammogram and was told she was too young. Her doctor also explained that because of the fibrocystic changes it would be hard to evaluate her breast. She was advised to come in for follow up in six months.
Almost two years passed before this patient finally got into the hands of a doctor who ordered the mammogram and diagnosed her breast cancer. This young mother was right. She did have breast cancer. And when the doctors made the diagnosis the breast cancer was widely metastatic.
I told the lawyer who asked me to review the case that there was in fact, a delay in diagnosis. However, the question was whether the patient would have had a different outcome had the breast cancer been diagnosed earlier. Both sides could find experts who could come to very different conclusions.
Here are the most common classes of lawsuits
- Failure to make a diagnosis or a delay in diagnosis
- Complications from treatment
- Failure to treat or a delay in treatment
- Poor outcome or disease prevention.
- Wrongful death.
Great Doctors Get Sued
Doctors are sued more often than most people realize. According to the 2023 Medscape study, 55% of physicians have been named in a malpractice lawsuit. That number climbs even higher for specialists. General surgeons (like me), OB/GYNs, and orthopedic surgeons are among the most frequently sued.
And yet, most physicians who face lawsuits are not negligent. Bad outcomes happen—even when a doctor does everything right. But when those outcomes cross a certain line, doctors can find themselves in courtrooms instead of exam rooms.
Doctors who practice is certain states are more likely to be sued, and this is shaped by torte reform. More that 25 states have implemented a damages cap. How does this impact lawsuits? The lawyer who accepts a patient plaintiff takes the case on contingency. The amount they get paid is tied to their ability to prevail and then collect damages. When damaged are capped, it makes it less attractive to take a risk.
In a study published in the New England Journal of Medicine, about 44% of physicians have been sued once, and 49% have been sued 2 to 5 times. Approximately 1% of all physicians accounted for 32% of paid claims. Among physicians with paid claims, 84% incurred only one during the study period (accounting for 68% of all paid claims), 16% had at least two paid claims (accounting for 32% of the claims), and 4% had at least three paid claims (accounting for 12% of the claims). In adjusted analyses, the risk of recurrence increased with the number of previous paid claims.
A large majority of physicians said that the lawsuit was unwarranted.
On average the lawsuit lasted from 1 to 2 years, although it can drag out to 5 years
In well over 90% of cases, the physician prevails.
- 40% of time, the cased is dismissed.
- 30% of the time the case is settled and in
- 12% of the time the verdict favored the doctor
- When the patient got an award or settlement, over half the time the settlement was lower than $500,000. Most physicians are insured for $1m per claim and a limit of $3m in aggregate.
My Story: Being Sued as a Young Surgeon
The first time I was sued, I was in my second year of surgical residency. A process server showed up at my house and handed me an envelope: You’ve been served.
I was named in a lawsuit related to a patient I barely remembered, and my husband panicked when he saw that we—our “marital community”—were also named. He feared we could lose everything.
Ultimately, I was dismissed from the case, but the experience rattled me.
Years later, in private practice, I gave a struggling patient top-tier care—only to be sued by him later. The allegations were false. But that didn’t make the process less painful.
The lawsuit dragged on for three years. When it was finally dismissed, I realized just how much it had consumed me—professionally and personally. I became suspicious of patients. I second-guessed myself. It was a dark time.
As my lawyer said, “With lawsuits, even when you win, you lose.”
Why This Matters to You as a Financial Advisor
Your doctor clients may carry medical malpractice insurance—but that doesn’t protect them from everything.
They’re also at risk when:
-
A tenant slips and falls on their rental property.
-
A family member causes a car accident.
-
A former employee sues their practice.
-
A business partnership goes south.
Wealth attracts lawsuits. And doctors are often walking targets.
As their advisor, your job isn’t just about investment strategy. It’s about helping them protect what they’ve built.
How You Can Make a Real Difference
As a financial advisor, this is your moment to lead—not just with financial strategies, but with empathy, foresight, and real solutions.
Here’s how:
1. Encourage Doctors to Build a Support Team
Help your clients establish a small circle of trusted professionals—therapists, coaches, clergy—structured as a $1 consulting group. It allows them to safely talk about what they’re going through without fear of legal repercussions.
2. Make Sure Their Insurance Is Rock Solid
Do they have adequate malpractice, umbrella, and property coverage? Are their personal and business assets properly protected?
3. Use Legal Structures to Shield Wealth
Work with estate planning attorneys to explore trusts, LLCs, and family limited partnerships. Encourage use of ERISA-protected retirement plans. Make sure everything is titled correctly.
4. Explore Expert Witness Work as a Side Gig
Some physicians find purpose and profit in serving as medical experts in litigation. I did. It was healing and highly profitable. You can help clients explore whether this is right for them.
5. Just. Show. Up.
Sometimes, the most valuable thing you can do is listen. Be there when they’re scared, angry, or ashamed. That’s when trust is built. That’s when relationships deepen. And that’s when referrals happen.
Bottom Line
When sued, doctors often feel alone, ashamed, and afraid.
This is your moment to stand out. Not with a product, but with presence. With compassion. With smart protection strategies. With the kind of support that helps doctors breathe easier and sleep better.
Do that, and you’re no longer “just” a financial advisor—you become an indispensable ally.
And that’s when real trust is built. That’s how referrals happen. And that’s how you truly make a difference.
Want to learn more about working with doctor clients?
Sign up for our free, on-demand training: How and Why to Attract, Engage, and Serve Doctor Clients in 2025.