Why Doctors Are Heading for Texas

The Wall Street Journal reports:

Over the past three years, some 7,000 M.D.s have flooded into Texas, many from Tennessee.


Why? Two words: Tort reform.

In 2003 and in 2005, Texas enacted a series of reforms to the state's civil justice system. They are stunning in their success. Texas Medical Liability Trust, one of the largest malpractice insurance companies in the state, has slashed its premiums by 35%, saving doctors some $217 million over four years. There is also a competitive malpractice insurance industry in Texas, with over 30 companies competing for business. This is driving rates down.

It hard to compete when the other guy can do it cheaper.