April 2004

Headlines Pennsylvania Begins Lengthy Constitutional Amendment Process to Address Medical Liability Insurance Crisis Pennsylvania Legislature Sends Trauma Systems Stabilization Act to Governor's Desk Ohio Medical Malpractice Commission Calls for Additional Reforms Premium Subsidies Progress Through New Jersey Legislature Washington Legislature's Lower Chamber Bottles Up Liability Reform in Committee, AGAIN!

Pennsylvania Begins Lengthy Constitutional Amendment Process to Address Medical Liability Insurance Crisis

On March 10, the Pennsylvania General Assembly began the long process of amending the state's constitution to permit caps on noneconomic damages when it adopted Senate Bill 9 (11K PDF). As in many states, the process for amending the constitution requires that both chambers of the legislature approve the amendment language in two consecutive years before the amendment can be placed on the ballot. Now that the amendment has been passed by the Senate, surgeons should visit the Surgery State Legislative Action Center and send a letter in support of SB 9 to their state representatives.

Pennsylvania Constitutional Amendment "In a medical professional liability action involving a medical professional liability claim brought against a licensed health care professional or a health care facility, the General Assembly may, by statute, limit the recovery of noneconomic damages for injuries resulting in death, or for injuries to persons."

Pennsylvania Legislature Sends Trauma Systems Stabilization Act to Governor's Desk

During March, the Pennsylvania Legislature approved legislation that, if signed by Governor Rendell (D), will provide over $27 million in state and federal matching funds to beef up the preparedness capabilities of the state's 26 trauma centers. This critical legislation, known as the Trauma Systems Stabilization Act (11K PDF), was supported by the major physician and hospital groups in the state, including the College's Pennsylvania Chapters and the Hospital and Healthsystem Association of Pennsylvania.

Ohio Medical Malpractice Commission Calls for Additional Reforms

The Ohio Medical Malpractice Commission (OMMC) released its interim report (923K PDF) recommending that state legislators enact a number of measures to help stabilize the medical liability insurance market in the state. The commission, which was created as part of a comprehensive medical liability reform (404K PDF) package signed into law in 2003 by Governor Robert Taft (R), is charged with studying the effects of the new law and the problems of medical liability. OMMC recommends that the Ohio legislature pass legislation to create a Medical Liability Underwriting Association should the current medical malpractice continue to deteriorate. In addition, the interim report calls for: reporting of medical liability lawsuit data; development of a medical review screening process for medical liability lawsuits; and establishment of a patient compensation fund to help reduce medical liability insurance rates.

Ohio Medical Liability Reform Statute Sliding cap on noneconomic damages to not exceed the greater of $250,000 or three times the plaintiff's economic loss up to a maximum of $350,000 for each plaintiff or $500,000 if multiple plaintiffs are involved Four-year statute of repose giving plaintiffs a maximum of four years to discover an injury and file a cause of action Evidence of collateral source payments may be introduced Periodic payments of future damages permitted Arbitration agreements in writing between physicians and patients are permitted Defendants are liable for their proportionate share of negligence

Premium Subsidies Progress Through New Jersey Legislature

During March, both chambers of the democratically-controlled New Jersey legislature took action on very similar medical liability reform packages. Both bills working their way through the legislative process would provide premium subsidies to high risk specialties hardest hit by rate increases. Other reforms include: requirements for expert witnesses to be of the same specialty of the defendant and active in practice or teaching; a reduced statute of limitations for birth injuries; and creation of a task force to examine medical liability issues including caps on noneconomic damages. While members of the New Jersey Chapter of the ACS continue to push for stronger reforms, chapter leaders acknowledge that the package, in its current form, reflects the best possible headway on this issue for the next two years given the political make-up of the legislature.

Washington Legislature's Lower Chamber Bottles Up Liability Reform in Committee, AGAIN!

As reported in the January 2004 issue of ACS CrossCountry, Washington State physicians and their allies mounted a major medical liability reform campaign to address the state's growing insurance crisis. While these efforts were successful in the Senate when the upper chamber passed SB 5728, advocates for reform were once again thwarted by the inaction of the House Judiciary Committee, which bottled up the legislation for a second consecutive year. Since the legislature has now adjourned for the remainder of the year, surgeons will have to wait until 2005 for a chance to secure strong liability reforms, such as the $350,000 cap on noneconomic damages that was included in the Senate-passed package.

Past Issues of ACS Cross Country:

October 2003
November 2003
December 2003
January 2004
February 2004
March 2004

ACS State Affairs

Division of Advocacy and Health Policy

Jon H. Sutton Manager, State Affairs Chicago Headquarters 312-202-5358 jsutton@facs.org