The new trend at such hospitals as Johns Hopkins and Stanford goes against what insurance companies and malpractice lawyers have long advised doctors -- deny and defend -- The New York Times reported Sunday.

By promptly admitting medical errors and offering compensation, the hospitals hope to diffuse anger that can fuel costly lawsuits by patients and their families, the newspaper said.

At the University of Michigan Health System, for instance, existing claims and lawsuits dropped to 83 in August 2007 from 262 in August 2001, said Richard Boothman, the medical center's chief risk officer.

"Improving patient safety and patient communication is more likely to cure the malpractice crisis than defensiveness and denial," Boothman said.

Recent studies indicate one of every 100 hospital patients suffers negligent treatment, the report said.

Studies say as many as 98,000 people die each year as a result of such care, but as few as 30 percent of medical errors are disclosed to patients, the newspaper reported.