RPC Calculation of Present Value Damages Consultants
Ronald T. Luke
JD, PhD
President
Brian Piper
PhD
Senior Consultant
Angela VanDerwerken
PhD
Senior Consultant
Cameron Holstead
PhD
Senior Consultant
Sam Absher
PhD
Senior Consultant
Maria Veihl
PhD
Senior Consultant
Calculation of Present Value
For either medical or vocational damages it is necessary to calculate damages in future dollars and then discount these future damages to present value as of the time of trial. RPC has expert economists who are able to bring all damages calculations to present value. We compute different inflation rates for specific goods, services and wages. Our procedures ensure consistency between the inflation and discount rates used. The time series data used in these calculations of damages are continuously updated as government agencies publish new statistics. We also take the particular facts of each case into consideration to ensure the most accurate data and practices are used in our calculations.
Review of Present Value Analyses
RPC also assists defense counsel by reviewing present value calculations prepared by opposing experts. We evaluate whether the selected discount rates, growth assumptions, and methodologies are appropriate and consistent with accepted economic practice.
Our economists identify unsupported assumptions, methodological errors, or internal inconsistencies that may overstate or understate economic damages. When appropriate, RPC provides alternative present value calculations based on corrected assumptions and sound economic reasoning.
For more information, contact Athenna Dill, Personal Injury Case Manager, 512.371.8005, adill@rpcconsulting.com.
RPC Calculation of Damages and Present Value Blogs
Discovery of Information Relevant to the Reasonable Value of Past Medical Expenses in Texas Personal Injury Cases
Plaintiffs in Texas personal injury cases may only recover the reasonable value of the past medical expenses. However, Texas courts have held that billed charges are largely unrelated to the reasonable value of the services. The negotiated rates of providers and health plans in a medical market or rates set by government are all relevant evidence of reasonable value. This blog post discusses the ability of defendants in personal injury litigation to obtain evidence on the reasonable value of medical services through discovery
How Freestanding Emergency Departments can Avoid Charging “Unconscionable Charges”
In 2019 the Texas Legislature session passed several bills to limit what freestanding emergency departments (FSEDs) charge. One statute authorizes action by the Attorney General if an FSED’s charges are “unconscionable” in comparison to local hospital charges for similar emergency services. Most hospitals update their chargemasters at least annually. To ensure their charges do not become unconscionable, RPC recommends FSEDs review their chargemasters annually. RPC can help FSEDs set their charges to avoid them being “unconscionable.” We can also help FSEDs resolve payment disputes with health plans.
Determining the Reasonable Value of Future Medical Costs in Texas Personal Injury Cases
The cost of future medical care is often the largest component of economic damages sought and awarded in personal injury cases. RPC can calculate the reasonable value of goods and services in life care plans based on commercial health insurance allowed amounts (i.e. the market value of healthcare) or on specific fee schedules the plaintiff may be eligible for, such as Medicare, Medicaid, or Workers’ Compensation.