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Victims of medical negligence pay for reforms
There is a silent crisis today in the
tort field: the uncompensated vic-
tims of medical negligence.
Much has been said about the wan-
ing of medical-malpractice litiga-
tion in Pennsylvania. There has
been a 43.4 percent decrease in
medical-malpractice filings in the
past 10 years, down from 2,733 per
year on average from 2000-02 to
1,546 in 2013. In Philadelphia,
there's been a 68.3 percent decrease
in that same time period, from
1,204 to 382. Pay-outs by MCARE,
the excess insurer for Pennsylvania
physicians and hospitals, have de-
creased by 48.8 percent, from
$378.7 million in 2003 to $193.9
million in 2013.
Strikingly, all states have experi-
enced large drops in paid claims per
physician. From 1992 to 2012,
those claims dropped by 57 percent
nationally, including 51 percent in
those states, such as Pennsylvania,
that do not impose a cap on pain-
and-suffering awards. The number
of paid claims per physician career
has dropped from 1.05 in 1992 to
0.45 in 2012. Thus, the average
physician will never be involved in
a medical-malpractice claim that
results in the payment of money.
Medical-malpractice payments have
dropped to 0.1 percent of total
health-care costs. Malpractice in-
surance rates have fallen nationally
roughly 20 percent since 2006.
What explains the decrease in med-
ical-malpractice claims, payments,
and insurance rates? Unfortunately,
it's not due to better health care.
Although there have been im-
provements in some areas - for ex-
ample, a decline in central-line in-
fections in intensive care units -
studies continue to show very high
error rates, with no evidence of im-
provement.
Medical-malpractice claims, pay-
ments, and insurance rates are down
due to changes to the tort system.
Presently, 31 states, covering
roughly 68 percent of the U.S. pop-
ulation, have damage caps in medi-
cal-malpractice cases. Pennsylvania
doesn't have caps, but statutory and
court rule changes in 2002 and 2003
have combined to sharply reduce
claims and payments. These chang-
es include a reduction in the amount
of coverage required by physicians,
from $1.2 to $1 million, an abroga-
tion of joint liability, a reduction to
present worth for future earnings
losses, periodic payments of future
medical and personal care expenses,
certificates of merit, and strictures
on the plaintiff's choice of venue.
The cumulative effect of these
changes is to deter roughly half of
lawsuits and prevent roughly half of
the payments for claims.
But every action has an equal and
opposite reaction.
The decrease in claims and payouts
results in fewer fairly compensated
victims of medical negligence. Im-
portantly, the wholesale transfer of
cases previously brought in Phila-
delphia to the suburban counties has
resulted in justice being denied to
malpractice victims.
It is extremely difficult to win a
medical-malpractice trial in the sub-
urban counties. Between 2009 and
2013, plaintiffs only won 16 out of
146 jury trials in Bucks, Chester,
Delaware, and Montgomery Coun-
ties, a .109 batting average. Phila-
delphia is not a haven for medical-
malpractice victims, as only 33.8
percent of malpractice plaintiffs
won their cases between 2009 and
2013. But at least plaintiffs have a
decent chance in Philadelphia.
Given these odds and the reduced
value of the claims, it's no wonder
By Shanin Specter
Thursday, October 2, 2014
that law firms report that they ac-
cept only about 1 percent of medi-
cal-malpractice inquiries for repre-
sentation.
What should be done?
First, the Pennsylvania Supreme
Court should amend the venue rules
that were enacted in 2003. Malprac-
tice victims and defendants should
play by the same rules as other tort
victims and defendants. Medical-
malpractice cases should be permit-
ted to be filed in a county in which
one or more of the defendants regu-
larly conducts business. That's the
rule for motor vehicle accident cas-
es, premises liability cases, contrac-
tual disputes, and nearly all other
civil matters. We needn't fear abuse
of the rules, as our Supreme Court
has made clear that the Common
Pleas Courts and Superior Court are
vested with the authority to transfer
cases away from an inconvenient
forum.
Second, there is a significant issue
about whether it is fair to pay less to
victims of medical malpractice than
to victims of other torts. Only the
medical profession enjoys special
rules with respect to reduction to
present worth of lost earning ca-
pacity and periodic payments of fu-
ture medical and personal care ex-
penses. This may violate the consti-
tutional guarantee of equal protec-
tion. The special-venue rules may
also violate equal protection. These
and related questions could be
raised in the Pennsylvania trial and
appellate courts.
The pendulum has swung too far in
favor of health-care providers and
their insurers and against medical-
malpractice victims. It's time to
move toward the center.
Shanin Specter is a Philadelphia
attorney.

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ss-100214-2

  • 1. Victims of medical negligence pay for reforms There is a silent crisis today in the tort field: the uncompensated vic- tims of medical negligence. Much has been said about the wan- ing of medical-malpractice litiga- tion in Pennsylvania. There has been a 43.4 percent decrease in medical-malpractice filings in the past 10 years, down from 2,733 per year on average from 2000-02 to 1,546 in 2013. In Philadelphia, there's been a 68.3 percent decrease in that same time period, from 1,204 to 382. Pay-outs by MCARE, the excess insurer for Pennsylvania physicians and hospitals, have de- creased by 48.8 percent, from $378.7 million in 2003 to $193.9 million in 2013. Strikingly, all states have experi- enced large drops in paid claims per physician. From 1992 to 2012, those claims dropped by 57 percent nationally, including 51 percent in those states, such as Pennsylvania, that do not impose a cap on pain- and-suffering awards. The number of paid claims per physician career has dropped from 1.05 in 1992 to 0.45 in 2012. Thus, the average physician will never be involved in a medical-malpractice claim that results in the payment of money. Medical-malpractice payments have dropped to 0.1 percent of total health-care costs. Malpractice in- surance rates have fallen nationally roughly 20 percent since 2006. What explains the decrease in med- ical-malpractice claims, payments, and insurance rates? Unfortunately, it's not due to better health care. Although there have been im- provements in some areas - for ex- ample, a decline in central-line in- fections in intensive care units - studies continue to show very high error rates, with no evidence of im- provement. Medical-malpractice claims, pay- ments, and insurance rates are down due to changes to the tort system. Presently, 31 states, covering roughly 68 percent of the U.S. pop- ulation, have damage caps in medi- cal-malpractice cases. Pennsylvania doesn't have caps, but statutory and court rule changes in 2002 and 2003 have combined to sharply reduce claims and payments. These chang- es include a reduction in the amount of coverage required by physicians, from $1.2 to $1 million, an abroga- tion of joint liability, a reduction to present worth for future earnings losses, periodic payments of future medical and personal care expenses, certificates of merit, and strictures on the plaintiff's choice of venue. The cumulative effect of these changes is to deter roughly half of lawsuits and prevent roughly half of the payments for claims. But every action has an equal and opposite reaction. The decrease in claims and payouts results in fewer fairly compensated victims of medical negligence. Im- portantly, the wholesale transfer of cases previously brought in Phila- delphia to the suburban counties has resulted in justice being denied to malpractice victims. It is extremely difficult to win a medical-malpractice trial in the sub- urban counties. Between 2009 and 2013, plaintiffs only won 16 out of 146 jury trials in Bucks, Chester, Delaware, and Montgomery Coun- ties, a .109 batting average. Phila- delphia is not a haven for medical- malpractice victims, as only 33.8 percent of malpractice plaintiffs won their cases between 2009 and 2013. But at least plaintiffs have a decent chance in Philadelphia. Given these odds and the reduced value of the claims, it's no wonder By Shanin Specter Thursday, October 2, 2014
  • 2. that law firms report that they ac- cept only about 1 percent of medi- cal-malpractice inquiries for repre- sentation. What should be done? First, the Pennsylvania Supreme Court should amend the venue rules that were enacted in 2003. Malprac- tice victims and defendants should play by the same rules as other tort victims and defendants. Medical- malpractice cases should be permit- ted to be filed in a county in which one or more of the defendants regu- larly conducts business. That's the rule for motor vehicle accident cas- es, premises liability cases, contrac- tual disputes, and nearly all other civil matters. We needn't fear abuse of the rules, as our Supreme Court has made clear that the Common Pleas Courts and Superior Court are vested with the authority to transfer cases away from an inconvenient forum. Second, there is a significant issue about whether it is fair to pay less to victims of medical malpractice than to victims of other torts. Only the medical profession enjoys special rules with respect to reduction to present worth of lost earning ca- pacity and periodic payments of fu- ture medical and personal care ex- penses. This may violate the consti- tutional guarantee of equal protec- tion. The special-venue rules may also violate equal protection. These and related questions could be raised in the Pennsylvania trial and appellate courts. The pendulum has swung too far in favor of health-care providers and their insurers and against medical- malpractice victims. It's time to move toward the center. Shanin Specter is a Philadelphia attorney.