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Wisconsin Supreme Court Upholds Caps
In a unanimous decision, the Wisconsin Supreme Court (244K PDF) upheld the constitutionality of the state's total cap on noneconomic damages for cases involving medical negligence and wrongful death. In the case heard by the court, the plaintiffs (parents of a deceased child) asserted that the concept of a singular cap for noneconomic damages for both wrongful death and medical negligence was unconstitutional. Under this line of thinking, plaintiffs would be able to seek damages up to the cap levels for both medical negligence and wrongful death. The court clearly ruled that individuals may only seek noneconomic damages for either medical negligence or wrongful death, but not both at the same time.
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New Jersey Tax on Surgical Care
In a move to fill New Jersey's budget gap, Gov. James McGreevy (D) worked with the Democratic state legislature to pass legislation taxing two specific areas of health care. Under one of the new laws, a 6 percent tax will be levied on gross receipts generated from cosmetic surgical procedures defined by the state as "any procedures that do not meaningfully promote the proper functioning of the body or prevent or treat illness or disease." The second law will assess a 3.5 percent tax on the gross receipts of ambulatory surgical centers, including those centers not licensed to a hospital, on any receipts greater than $300,000. The New Jersey Chapter of the American College of Surgeons is working in a coalition effort to develop a strategy to repeal both of these arbitrary and discriminatory tax bills. Please contact Art Ellenberger (njacschapter@yahoo.com), New Jersey Chapter Administrator, to learn how you can help in this effort.
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"New Jersey has become a hostile medical practice environment. Physicians are under siege and are leaving New Jersey in droves under the weight of increased practice costs due to skyrocketing medical liability premiums, decreasing reimbursement and other practice expenses. They are laying off staff, deferring purchases of necessary equipment, or making other changes due to reduced practice income – including closing their practices. Increasing taxes will only make these problems worse."
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Paul LoVerme, MD, FACS
President, New Jersey ACS Chapter
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Illinois City Adopts Medical Liability Reform Ordinance
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In light of inaction by the Illinois General Assembly, the Marion City Council unanimously passed an ordinance to address the serious medical liability insurance crisis. Located in rural Southern Illinois, where access to physicians has become limited, the city of Marion approved the ordinance under the rubric of home rule authority granted by state statute. Major medical liability reform elements of the ordinance include: limit on noneconomic damages to no more than three times the damages awarded for economic loss; venue of lawsuits instituted as a result of treatment given in Marion must be filed in Williamson County circuit court; loser pays for all costs, including court costs and attorney fees; economic damages must be based on tangible loss for cost of past and future medical and hospital expenses, loss of income, and other property loss; and care provided in an emergency or acute incident within Marion in a usual and customary manner is exempt from liability. Ultimate validity of the ordinance will likely be determined by the courts.
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Slots Win, Tort Reform Loses in Pennsylvania
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Penn. Governor
Ed Rendell
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The saga of trying to enact caps on noneconomic damages in the state of Pennsylvania continued last month when the General Assembly failed to pass a constitutional amendment, which would have permitted the legislature to impose such limits. Various parliamentary procedures were attempted to bring the legislation to a vote, and while the House responded in the affirmative, the Senate Judiciary Committee voted to table the legislation, effectively killing it until the Fall session. In a non-related matter, the General Assembly was able to pass Governor Rendell's proposal on slot machine gambling, with the expectation of increasing state revenues by $1billion a year. A tongue-in-cheek suggestion was for physicians to put slot machines in their offices to help pay for their liability insurance premiums.
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Northwest States Pushing Medical Liability Reform Initiatives
Physicians in both Oregon and Washington are actively advocating for initiatives to address the medical liability crisis in their states. In Oregon, petitions were filed with the Secretary of State's office to put medical insurance reform on the November ballot. If approved by the voters, the measure would reinstate a $500,000 cap on noneconomic damages in medical liability cases.
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In Washington State, Doctors for Sensible Lawsuit Reform (DSLR) filed a liability reform initiative with the legislature. Once it is reviewed by the state's Code Reviser and the Attorney General's office, DSLR can begin gathering voters' signatures to validate the initiative in order for it to go before the legislature. If the legislature does not pass it, then it goes on the November 2005 ballot. Reforms contained in this initiative include: a sliding scale on attorney fees; limits on noneconomic damages ranging from $350,000 to $1,050,000; periodic payments for damages; and a collateral source rule.
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Past Issues of ACS Cross Country:
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
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ACS State Affairs
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Division of Advocacy and Health Policy
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Jon H. Sutton
Manager, State Affairs
Chicago Headquarters
312-202-5358
jsutton@facs.org |
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Revised July 30, 2004
Advocacy and Health Policy
This page and all contents are Copyright © 2003-2004
by the American College of Surgeons, Chicago, IL 60611-3211
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