Seven Massachusetts hospitals plan to offer patients harmed by medical errors a prompt apology and financial settlements before they resort to lawsuits, part of a major new initiative to improve the state’s cumbersome medical malpractice system.

A coalition of physician, hospital, and patient groups planned to release details Wednesday of the initiative, called “Road Map to Reform,’’ which they predict will increase reporting of medical mistakes and cut down on lengthy litigation that drives up health care costs and fuels distrust between caregivers and patients.

The plan calls on doctors and nurses to fully disclose mistakes to patients and apologize. Three large insurers and a medical group have donated about $1 million to underwrite the initial work at the seven test hospitals, and the coalition hopes to implement the improvements statewide over the next several years.

“This is a fundamental transformation of the system,’’ said Dr. Alan Woodward, a retired emergency medicine physician who helped lead the coalition for the Massachusetts Medical Society, a large doctors’ organization. “The whole system has created secrecy and denial. We are trying to turn things around.’’

While many people believe doctors are ethically obligated to acknowledge mistakes, Woodward said they are often hesitant to do so because they fear lawsuits. At the same time, doctors practice “defensive medicine’’ by giving unneeded tests so that in the event of legal action, they can show they did everything possible. When cases do end up in court, Woodward said, it takes 5 ½ years on average in Massachusetts for patients to be awarded money. During that time, caregivers often are told not to discuss the case with anyone, especially the patient.

Patients who accept the financial settlement surrender their right to sue, but those who decline the settlement can pursue legal action.