Perry Calls Med-Mal Reform an Emergency Issue

During a visit to the Rio Grande Valley, Texas Governor Rick Perry announced plans to declare medical malpractice reform an emergency issue when the 78th Texas Legislature convenes in January. He has previously said that homeowners insurance reform will be given emergency status in the next legislative session as well.

“All across Texas, doctors are hanging up their stethoscopes and white coats as they abandon the medical profession because of soaring malpractice rates and the headache of frivolous lawsuits,” Perry said. “If not addressed soon, the medical malpractice crisis will do lasting damage to the practice of medicine in Texas and undermine the access Texans have to the quality care they need.”

Malpractice claims against doctors are almost 60 percent higher in the Rio Grande Valley than in the rest of the state. Perry has attributed the malpractice insurance crisis to growing numbers of frivolous and abusive lawsuits, and escalating damage awards, settlements and legal expenses—all of which drain health care providers’ financial resources and time from treating patients. He noted that 86 percent of medical malpractice claims are dismissed without a payout.

Earlier this year, Perry laid out a series of corrective measures that include:
• Enact meaningful lawsuit reform for the health care profession that caps non-economic losses to plaintiffs at $250,000 and limits personal injury trial lawyers’ fees to a prescribed schedule based on the size of the award. More than 20 other states have capped non-economic damages, resulting in significantly lower liability insurance rates.
• Create special courts or designate special judges to hear medical malpractice claims. These judges would have expertise in malpractice issues and would be better able to weed out frivolous lawsuits and to sanction lawyers and award litigation costs in merit-less cases.
• Expand the Texas Department of Insurance’s ability to review insurance rates to ensure they are commensurate with losses. Unjustified rate increases would be subject to reduction.

“By removing incentives for abuse by trial lawyers, increasing oversight of insurance companies and establishing special courts for malpractice cases, we can greatly reduce malpractice rates and keep doctors doing what they do best which is helping patients,” Perry said.

Perry called for extending tort immunity to health care providers who treat low-income patients under contract with the state. In addition, the governor proposed developing clear procedures for reducing medical errors, and for clear and swift disciplinary actions against bad doctors whose actions endanger patients and damage the reputations of all health care providers. Those procedures would be developed in concert with doctors and hospitals around the state.

In addition medical malpractice reform, Perry has announced that homeowners insurance reform will be given emergency status in the next legislative session. The 78th Texas Legislature convenes on Jan. 14, 2003.

Topics Texas