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.
Why the cap overshadows both methods for serious injuries
Tennessee caps noneconomic damages at $750,000, rising to $1,000,000 for a catastrophic injury, under Tenn. Code Ann. § 29-39-102. Once either the multiplier or per diem calculation crosses that line, the cap controls — so for a seriously injured claimant, which method was used to get there matters less than whether the total landed above or below the statutory ceiling.
A statewide cap, not a malpractice-only one
It's worth noting that Tennessee's cap applies broadly across personal injury claims, not just medical malpractice — a meaningful difference from states that limit their cap specifically to malpractice cases. A car accident, a premises liability claim, or any other personal injury case can run into the same $750,000 or $1,000,000 ceiling.
Neither is required by Tennessee law
Both methods remain negotiating tools, not a formula Tennessee courts are required to apply. A jury retains discretion to award whatever amount it finds appropriate for noneconomic damages — subject to the statutory cap, which a court will apply after the verdict if the award exceeds it.