How are medical malpractice settlements paid out in Florida? Hello my name is Kevin Moore. I’m an attorney with Farah & Farah. in Florida medical malpractice settlements are generally paid out by the insurance companies that represent the doctors or the defendants involved. Once these funds are received by the attorney, the attorney then resolves any leans that you may be responsible for and any other outstanding expenses that need to be taken care of. At that point the remainder of the proceeds are distributed to the client.