Louisiana: Multiplier Method vs. Per Diem Method Compared

Two different ways to turn general damages into a dollar figure — and in Louisiana medical malpractice, a $500,000 total cap can make the method matter less than you'd think.

The multiplier method: scaling off your damages

The multiplier method is the industry's default approach. It takes your economic damages — medical bills and lost wages — and multiplies that total by a factor generally between 1.5 and 5, chosen based on injury severity, recovery time, and whether any permanent impairment is involved.

The per diem method: valuing each day

The per diem (Latin for "per day") method works differently. It assigns a specific dollar value to a single day of pain and suffering and multiplies that rate by the total number of days of documented recovery, tying the value directly to time rather than to the size of your medical bills.

A Louisiana vocabulary note: "general damages," not "non-economic"

Louisiana's civil law tradition, inherited from its French and Spanish legal history rather than English common law, uses its own terminology: pain, suffering, and loss of enjoyment of life are called "general damages," while medical bills and lost wages are "special damages." Functionally, these map closely onto the economic and non-economic categories used elsewhere, but the vocabulary is worth knowing if you're reading a Louisiana court opinion or demand letter.

A genuinely Louisiana-specific wrinkle: a total cap, not just a general-damages one

For an ordinary Louisiana injury case, neither method runs into a cap at all. Medical malpractice is different: the Louisiana Medical Malpractice Act caps total damages — general damages plus most special damages combined — at $500,000, excluding future medical care. That's unusual; many states that cap medical malpractice damages cap only the non-economic (general damages) side. In Louisiana, once the combined total approaches the cap, the choice between multiplier and per diem stops mattering much — the ceiling, not the formula, decides the outcome.

Future medical care sits entirely outside this calculation

One major exception keeps this from being as harsh as it sounds: future medical expenses aren't counted toward the $500,000 cap at all. The state's Patient's Compensation Fund pays those directly and without limit, for as long as the patient needs care, completely separate from the capped lump-sum total.

Neither is required by Louisiana law

Both methods remain negotiating tools, not a formula Louisiana courts are required to apply. A judge or jury retains discretion to award whatever amount it finds appropriate for general damages, subject to whichever cap, if any, applies to the type of claim.

Multiplier vs. per diem — frequently asked questions

What is the multiplier method for valuing general damages?

It takes your economic damages — medical bills and lost wages — and multiplies that total by a factor, generally between 1.5 and 5, based on how severe and lasting the injury is.

What is the per diem method, and how does it differ?

The per diem method assigns a specific dollar value to each day you experience pain and suffering, then multiplies that daily rate by the number of days of recovery, rather than scaling off your economic damages.

Why does Louisiana call this category "general damages" instead of non-economic damages?

Louisiana follows a civil law tradition distinct from most other states, and its courts traditionally use the term general damages for losses like pain, suffering, and loss of enjoyment of life that aren't tied to a specific dollar amount.

Does either method run into a ceiling in Louisiana?

Only in medical malpractice. An ordinary Louisiana personal injury case has no damages cap, but a medical malpractice claim is subject to a $500,000 total damages cap under the Louisiana Medical Malpractice Act, excluding future medical care.

Is either method required by Louisiana law?

No. Neither is a formula set by statute. Both are negotiating tools used by attorneys and insurance adjusters to reach a number for the fact-finder or the settlement table, within whatever cap applies to the case.

This page provides general guidance only and is not legal advice. Figures are based on the multiplier and per diem methods commonly used across the personal injury industry and the Louisiana Medical Malpractice Act (La. R.S. 40:1231.2), verified per our methodology. Confirm how these methods apply to a specific claim with a licensed Louisiana attorney before acting.