march 11, 2003 plus medical professional liability symposium d, brent mulgrew executive director...
TRANSCRIPT
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March 11, 2003
PLUS Medical Professional Liability Symposium
PLUS Medical Professional Liability Symposium
D, Brent MulgrewExecutive DirectorOSMA
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OSMA Value
1. Advocating for physicians2. Promoting a positive image3. Practice services that save time
and money
Value& Loyalty
Advocacy Practice Services
Image
Zero Cost of Membership
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Professional Liability Crisis
’Critical Condition’’Critical Condition’
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Source: www.ama-assn.org
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What we’re seeing in Ohio
“Soaring malpractice premiums stun many doctors”…USA Today
“Family physician to give up obstetrics” …Health Headlines“Professional liability rates go up; doctors go away”…AMNews
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What we’re seeing in Ohio
“Malpractice-insurance rates in Cleveland among highest in nation”…Cleveland Plain Dealer
“Malpractice coverage hikes slam doctors” …Columbus Business First
“No cure for rising costs...malpractice insurance skyrockets”…Akron Beacon Journal
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What we’re hearing in Ohio
“My premium with Medical Assurance, even with my 15½% loss free discount, is going from $33,000 to $45,000 (+40%).”…Ob/Gyn, Cincinnati“Our practices have been billed 50-70% higher premiums this year for malpractice insurance.”…Multi-specialty IPA, southeast Ohio
“Premiums are rising so fast that a change in careers or retirement become the only options.” …General Surgeon, Mt. Vernon
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What we’re hearing in Ohio
“The rates for our group just doubled for no good reason. Our claims rate has not changed.” …Radiologist, Dayton“One of my partners was forced to retire due to the rise in malpractice rates!”…Urologist, Akron
“My malpractice rates just doubled! I’d call that a crisis!”…Ob/Gyn, Maumee
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The Ohio physician’s experience
Tighter Underwriting
Increasing JuryAwards
Decreasing MedicareReimbursement
IOM Patient Safety Report
Seeing More Patients
HIPAA
St. Paul’sExit
PromptPay
DownCoding
10-Year Soft PLI Market
ManagedCare
MIIX Downgrade
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The impact…
Increased expenses Time poverty Revenue remains flat to declining Reduced income Decreased access to patient care
discontinuing some procedures (96%) leaving for less litigious areas (15%) quitting the practice all together (51%)
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Ohio’s PLI History
• 1974-75 PLI availability disappears• OSMA’s response: Omnibus HB 682-Medical
• Multiple tort reform provisions-4yr S/L, Pretrial Arb, limitations on experts, voluntary arb. 250K cap• most sections declared unconstitutional 1980
• OSMA establishes physician owned PLI company• Multiple entrants in marketplace by1980-
Availability increasing, price increases slow to inflation
• 1982-86 Market tightens, prices spike • OSMA’s response: Broad based Tort Reform
• include business coalitions
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History
• 1990--Held unconstitutional, but prices stable
• OSMA’s response: 1995 HB 350 Broad based Tort Reform--Unconstitutional 1999• Do you detect a pattern??• Without changing the Supreme Court--
legislation is useless• 2001-02 Market deteriorates as
prices spike and availability disappears
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Action taken…
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The OSMA’s response…
Communication with ODI
PLI Carriers’ Roundtable
Passed SB 281
Governor’s Task Force
Providing PLI Carriers’ Ratings
Providing Access to independent PLI agent
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Senate Bill 281
Limits noneconomic damage awards in the vast majority of cases to $350,000
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Senate Bill 281
Requires attorney contingency fees to be reviewed by a probate court if the fees exceed the noneconomic damage awards
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Senate Bill 281
Establishes a statute of repose
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Senate Bill 281
Protects physicians from the notice of a claim being used against him/her
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Senate Bill 281
Allows evidence of collateral source payments
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Senate Bill 281
Provides for periodic payment of future damages
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Senate Bill 281
Strengthens Ohio’s current arbitration law
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Related Tort Reform Legislation
Senate Bill 120Removes joint and several liabilityIn other words, in most cases, a physician who is
named in a suit will only be held liable for the portion of the claim for which he or she may be responsible
Senate Bill 179Provides a broader base of peer review
protectionsAllows health-care entities outside the traditional
hospital setting to establish peer review committees
The activities are protected from discovery during litigation
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IMPACT
No reduction in rates or trend Increased numbers of failure to renewSelective underwriting of risks/specialtiesIncreased demand for hospital provided ins.Credit history/psychological prescreensCreation of new nonstandard market optionsRisk retention groups, off shore or friendly
state captives and OWAs.Ohio Hospital Assn. Creates new options for
physicians through their institutions