The Therapeutic Significance of Compensation Structures

Abstract

This article deals with the therapeutic significance of claims for damages and other types of compensation, and of the processes relating to claims. It examines the influences of legal structures and processes in promoting the recovery of a patient/client from disablement, or in alleviating or aggravating the development of a disability. It is concerned in particular with the spill-over influences of claims on the formation of medical opinions, on the selection of treatment, on patients' responses to treatment, and on rehabilitation. The article examines the assumption that compensation systems promote a widespread psychological problem of "secondary gain", "monetary gain", or "compensation neurosis". The author explains why the assumption exists and he examines its validity. The article provides a commentary relevant to the conduct of claims, and it also seeks to identify the therapeutic significance of structural alternatives in the design of compensation systems .

Keywords: therapeutic, significance, compensation, claims

JEL Classification: E24, I38, J28, J33, K31