In California, unlike in most other states, when a child dies due to medical negligence there is an artificial limit placed on the value of their life. That's because of the Medical Injury Compensation Reform Act (MICRA), a law passed in 1975 that places a $250,000 cap on non-economic damages. Due to this law, if Jahi remains on a ventilator, the hospital could face a multimillion-dollar verdict for economic damages, with a jury deciding what it would cost to continue to care for her medical needs and what the cost is of her lost wages due to her inability to work. However, if Jahi were to be taken off of the ventilator, the family may only recover $250,000 no matter how much a jury decides is a fair value to compensate them for the pain and suffering endured due to the loss of their child.
This law is unique to the medical profession in California. If a child were to die because of a reckless driver in a car accident or because of a pilot's error in a plane crash, it would be up to the jury to decide what they believe is fair to award the family due to their pain and suffering over the loss of a child. However, if a child dies due to an error made by a nurse or doctor, the jury's authority to decide how to compensate the family is taken away from them, without their knowledge. In these cases, a jury could return a substantial verdict only to find out afterward that the verdict will be reduced to $250,000, an amount set nearly 39 years ago. While social security benefits, wages, and the cost of goods and services has kept up with inflation, the cost of a child's life remains at an amount set back when Gerald Ford was president and Jerry Brown was governor for the first time.
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We will never know whether financial motivations played a role in Children's Hospital's decision to encourage the McMath family to take Jahi off the ventilator despite their objections. However, due to the substantial difference in financial liability a hospital faces if a patient lives or dies, there is a concern that hospitals could have a financial incentive in turning off life support, a concern that would be erased if the value of a patient's life were not dependent upon an outdated law.