New York Times: [1]

By promptly disclosing medical errors and offering earnest apologies and fair compensation, they hope to restore integrity to dealings with patients, make it easier to learn from mistakes and dilute anger that often fuels lawsuits. [..]

Despite some projections that disclosure would prompt a flood of lawsuits, hospitals are reporting decreases in their caseloads and savings in legal costs. Malpractice premiums have declined in some instances, though market forces may be partly responsible. [..]

Recent studies have found that one of every 100 hospital patients suffers negligent treatment, and that as many as 98,000 die each year as a result. But studies also show that as few as 30 percent of medical errors are disclosed to patients.

Only a small fraction of injured patients — perhaps 2 percent — press legal claims.

According to the article, another benefit is turning medical mistakes into learning opportunities that improve the quality of health care.

Several states have laws that make apologies inadmissible in lawsuits. A few states have made admissions of wrongdoing inadmissible, and seven states require disclosure to patients when things go wrong.