American Justice
 Partnership Foundation

  Updates on Liability Reform in the States

Oct 31, 2008

 

 

  

Pennsylvania's “Self-Inflicted Healthcare Crisis”

Draws Fire From Legal, Healthcare Reformers

Philadelphia’s 15th Maternity Unit to Close Due to Liability Concerns

“Life or death lottery for mothers in Philadelphia”

Download The Facts Here

(WASHINGTON, DC/NEW YORK CITY/ATLANTA) The closing of the Chestnut Hill maternity unit (featured left) in early November leaves the Philadelphia metropolitan area of more than 5 million people nearly without OB/GYN services.  Pregnant mothers in crisis may have to drive more than an hour in traffic to reach a maternity care unit.

 

The American Medical Association (AMA) has labeled Pennsylvania's healthcare delivery system as an “extreme-level crisis”, citing shortages in key specialties including OB/GYN, neurology, general surgery, oncology, and radiology.

 

"The announced closing of the Chestnut Hill Hospital maternity ward is yet another casualty of an unreliable medical malpractice system.  Restoring reliability to justice, such as with special health courts, is essential to restoring the trust needed for a healthy system of health care," said Philip K. Howard (left), Common Good founder and chair .
 

"Pennsylvania is in a crisis situation in terms of access to quality medical care,” said Wayne Oliver, health justice project director for the Center for Health Transformation.  “The legal system is forcing hospitals to abandon certain ‘high-risk procedures’ including delivering babies and neurosurgery.  When the legal system creates a healthcare shortage, something is seriously and morally wrong.”


“Pennsylvania is the poster child for the plaintiffs’ bar vision of America – sue the doctor, sue the hospital, and when they leave, support taxpayer-funded subsidies to hold onto the remaining cash cow,” said Dan Pero (left), President of the American Justice Partnership Foundation (AJPF).  “Reasonable reforms, including caps on non-economic damages, expert witness reform to match the standard in federal courts, and various procedural matters will help restore predictability, stabilize costs, and encourage physicians and facilities to return to Pennsylvania – all without harming the ability of legitimate claimants to have their day in court.”

 

Why is the Crisis “Self-Inflicted?”

According to the AMA and the Harvard School for Public Health, the common denominators behind the wholesale closing of critical medical facilities and physician shortages are a rampant lawsuit industry and the liability insurance costs that follow lawsuit abuse. 

 

Since 2000, medical liability insurance premiums in Pennsylvania (and neighboring states New Jersey and Connecticut) have nearly tripled.  More than 12,000 physicians – particularly in key specialties – have left the Commonwealth or retired during that period.
 

The Pennsylvania Medical Society predicts the potential loss of an additional 10,000 physicians within 10 years as the average physician age inches up along with the average statewide age – a “crisis point” for state health care.  Pennsylvania ranks near the bottom of all states for retention of young physicians – to below 20 percent today – due to lower malpractice insurance costs elsewhere, among several factors. 

 

Former U.S. House Speaker Newt Gingrich (left), founder of Center for Health Transformation, offered the following critique:  “Health justice reform can make all the difference in the world as it relates to the accessibility of high quality healthcare.  Physicians want to practice in states where they can have an open, trusting patient-physician relationship.  And, physicians do not want to practice in states which favor predatory personal injury lawyers over physicians and surgeons.”

 

“The price for failure to fix the liability crisis is human pain and suffering,” said Dan Pero.  “We can debate the merits of various private and publicly funded efforts to stem the tide of physicians leaving and facilities closing, but the bottom line is that women, children, the elderly, and those with emergency healthcare needs are absolutely at risk.”

 

Wayne Oliver from the Center for Health Transformation continued, “There is one fundamental question we should all ask ourselves:  ‘Would you rather have access to your doctor or a personal injury lawyer?’  To find the answer, ask a woman who is about to deliver her first child and must travel away from her community to seek medical care.  Better yet, ask a woman who is about to be a former patient of Chestnut Hill Hospital.”

 

Pennsylvania Compares Poorly to Other States . . .

 

In its updated 2008 report, Medical Crisis: A Pocketbook Matter for Employers, AJPF contrasts Pennsylvania’s health care crisis with the condition of states that have adopted various medical liability reforms – and the contrast is stunning. 

 

Texas, for example, faced similar physician and facility flight through the 1990s, leaving wide swaths of the state – particular rural areas – without critical medical services.  Why?  Because Texas was a hotbed of medical malpractice lawsuits that resulted in astronomical medical liability insurance costs for medical professionals and high health insurance rates for employers and individuals. 

 

Since Texas adopted comprehensive legal and medical liability reforms, physicians have been locating to Texas, the state is retaining its young physicians, new facilities are opening in underserved areas, and insurance costs have been declining. 

 

Other states that have adopted comprehensive reforms – Mississippi and West Virginia, for example – are experiencing similar improvements.

 

Download the updated  Medical Crisis: A Pocketbook Matter for Employers

 

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For more information, to schedule an interview, and to access reports, please contact the following:

American Justice Partnership Foundation

www.americanjusticepartnership.org

Todd Young

(770) 587-5733

(770) 317-2423

todd@DMINews.com

Center for Health Transformation

www.healthtransformation.net

Michelle Stein 

(202) 375-2063

mstein@gingichgroup.com

Common Good

www.commongood.org

Goodman Media

Jessie duPont

212-576-2700

 

 

 

The American Justice Partnership Foundation is a national nonprofit coalition of leading corporations, think tanks, foundations,

 trade associations, individuals and organizations advocating for legal reform at the state level. 

AJPF  is an affiliate of the National Association of Manufacturers.  www.americanjusticepartnership.org

Original material © 2008 American Justice Partnership Foundation.

 

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