Medical Liability Reform

Problem

In state civil justice systems that lack reasonable limits on liability, multi-million dollar jury awards and settlements in medical liability cases have forced many insurance companies to either leave the market or substantially raise costs.  Increasingly, physicians in these states are choosing to stop practicing medicine, abandon high-risk parts of their practices, or move their practices to other states. 

ATRA's Position:

To help bring a degree of predictability and fairness to the civil justice system that is critical to solving the growing medical access and affordability crisis, ATRA recommends a medical liability reform packages that includes: (1) a $250,000 limit on noneconomic damages; (2) a sliding scale for attorney’s contingent fees; (3) periodic payment of future damages; and (4) abolition of the collateral source. 


Opposition Opinion:

The personal injury bar likes to argue that only insurance companies are to blame for the current medical liability crisis.  Pointing to significant declines in the stock market, they blame insurance companies for raising rates to make up for allegedly irresponsible investing practices.  But market fluctuations cannot fully explain the sharp increases in medical liability insurance pricing, especially since insurance companies invest only 13% of their total investments in stocks.  A better explanation of why insurance companies have raised rates is that they have had to cover the cost of increased claim payments, which have risen almost three times the rate of inflation in recent years.

Rural Health Care Act: H.B. 18 (1989)

Texas|1989

Requires that juries be instructed that a bad medical outcome

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Requires that juries be instructed that a bad medical outcome does not necessarily justify a finding of negligence. Requires that expert witnesses be practicing physicians. Indemnifies physicians with a case load of 10% or more charity cases. Note: under the Act, OB-GYN’s and emergency room physicians would be indemnified for the first $100,000 and all physicians meeting the patient load, risk management and insurance requirements would be
indemnified for the first $25,000.


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Unchallenged

Medical Liability Reform: Noneconomic Damages Reform: HB 4 (2003).

Texas|2003

Limits the award of noneconomic damages in medical malpractice cases

[…]

Limits the award of noneconomic damages in medical malpractice cases to $250,000 against all doctors and health care practitioners and a $250,000 per-facility cap against health care facilities such as hospitals and nursing homes, with an overall cap of $500,000 against health care facilities, creating in effect an overall limit of noneconomic damages in medical malpractice cases of $750,000.


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