Texas Association of Business Proposes Med-Mal Reforms

The Texas Association of Business (TAB) unveiled a set of proposals to reform Texas’ medical malpractice insurance system, and called on candidates for governor and lieutenant governor to commit to capping non-economic damages in medical lawsuits.

“Frivolous lawsuits and outrageous jury awards are strangling the delivery of health care in this state. The American Medical Association has identified Texas as one of 12 states that are in serious danger of doctor shortages because of the sharp increase in medical malpractice insurance premiums,” TAB president Bill Hammond said.

“The reforms we are proposing today are designed to reverse that trend by returning financial stability to the marketplace and allowing physicians to concentrate on patient care instead of defensive medicine, which costs the U.S. health care system an estimated $60 billion annually,” Hammond said.

The highlights of TAB’s medical malpractice reform package include:

• Limit non-economic damages, such as pain and suffering, to $200,000 for each claimant and establish in statute that “economic damages” does not include punitive or non-economic damages.

• Ensure the bulk of any award goes to the claimant by establishing a sliding scale for attorney contingency fees of 33 percent for the initial $100,000 in damages, with fees decreasing as the recovery increases.

• Strengthen expert witness requirements that are now being abused, and allow the defense to immediately appeal a decision on expert witness qualifications or a trial judge’s failure to dismiss a lawsuit when expert witness reporting requirements are not met.

TAB delivered its proposed reforms to Sen. Jane Nelson, R-Lewisville, chair of the Special Senate Committee on Prompt Payment of Health Care Providers, and State Rep. John Smithee, chair of the House Insurance Committee. Both committees have been charged with examining the medical malpractice insurance issue and recommending legislation in advance of the 2003 Texas Legislature.

Emphasizing the issue’s public policy importance, TAB also sent its reforms to Gov. Rick Perry, gubernatorial candidate Tony Sanchez and lieutenant governor candidates David Dewhurst and John Sharp, urging the officials who will lead Texas to commit to tackling the problem head-on.

“TAB’s members and the public have identified holding the line on rising health care costs as this state’s top priority. When physicians are in the street protesting skyrocketing insurance rates, doctors are forced to either close their practices or leave Texas, and patients—many in this state’s most medically underserved areas—are denied health care, then it’s time for our leaders to step forward and meet the challenge. That time is now,” Hammond said.

TAB’s reforms are modeled after legislation California adopted in 1975, and which observers have pointed to as a blueprint for solving the medical malpractice crisis.

“Our reforms are designed to ensure that Texas’ medical malpractice system fully compensates any patient injured through negligent acts. But at the same time, a stop must be put to trial lawyers who use our courts primarily to enrich themselves at the expense of consumers, patients, doctors and our health care system,” Hammond said.

The medical malpractice reforms are one component of a comprehensive package of proposals TAB has developed to make health care more affordable and accessible in Texas. TAB will unveil its proposed solutions to the health care crisis at a conference Sept. 24 in Houston.

“The volunteer task force developed these health care solutions with a single goal in mind: to make Texas a better place to live and work. We trust that our state’s leaders and legislators will accept TAB’s recommendations in that spirit: an earnest attempt to solve a common problem,” Hammond said.

Topics Texas