In fact, if all states have damage caps, then this would also reduce the incentive to relocate. A nationwide cap would reduce all relocation among doctors. Currently, Colorado, Indiana, Virginia, Nebraska, New Mexico and Louisiana have total damages caps in place. West Virginia, Tennessee, South Carolina, South Dakota, Michigan, Kansas, Maryland, Hawaii, Idaho, Maryland, Kansas, Georgia, Utah, Texas, Wisconsin, Florida, Michigan, Montana, Mississippi, Ohio, Missouri, Oklahoma and Nevada are all states that have a noneconomic damages cap. This means that the cap pertains to any pain and suffering or emotional stress reimbursements, Massachusetts operates with both caps.
Researchers have studied the impact that these caps have on phsyicians, and discovered that damages caps may have a positive impact on the physician supply in rural areas. One study suggests that states that adopted damage caps had 3.2% more physicians per capita in rural counties. Research shows that damage caps don’t have any effect on physician supply but did report positive and significant increase in phsyicians per capital in quartile counties that have low population densities.