Abstract: A method of healthcare management wherein set required standards of healthcare for insured participating physicians are controlled by the physicians liability insurer. The required standards include requiring audio or audio visual recording, and retention of such recordings, of consultations between the participating physician and a patient, and upon the occurrence of a malpractice claim by a patient, evaluating the claim as to whether litigation is warranted or unwarranted. Such evaluation includes at a minimum review of the audio recording by the participating physician, the patient and the physician's liability insurer. Additional parties, such as the court, may be involved in such evaluation as necessary. The patient is awarded compensation in cases of warranted litigation in accordance with the evaluation, and malpractice insurance premiums are reduced for the participating physicians.