Medical malpractice is different. In medical malpractice, the relevant inquiry is: "what would a reasonably competent doctor practicing in a similar community have done?" That is to say, medical communities (e.g. rural hospitals in TN or urban hospitals in NY) get to establish the standard for how much caution doctors should exercise. Expert testimony is admitted to explain to the jury whether or not the doctor adhered to those standards. The jury doesn't get to establish the standard, only to determine based on expert testimony whether the standard was met.
The practical takeaway is this: "most deep oil drilling engineers do this" is a far weaker defense in a regular negligence suit than "most doctors do this" is in a malpractice suit. The medical profession is allowed to regulate itself in a way that say oil drilling companies are not.
As for alternatives, here's one paper that gives a pretty good literature review and suggests some alternatives: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3195420/
Richard Epstein's (a very prominent law professor) suggestion is to let patients contract with hospitals ahead of time to agree on dispute resolution mechanisms: http://online.wsj.com/article/SB124631652544770707.html
As a general matter, there are a fixed set of ways to deal with this kind of problem. You can have private litigation (as in the malpractice system); you can have government regulation and enforcement (e.g. as in environmental protection); you can have administrative claims systems (e.g. as in workers compensation or no-fault auto insurance).
The alternative to the malpractice system is one of the above. It's not capping damages for a grossly negligent baby delivery to $50,000 despite the fact that it could easily be an injury of several million to the baby and his family (and ultimately to society through lost productivity).