Texas Health Resources - The Business of Healthcare

The Business of Health Care Report
Perry's Malpractice Reforms - September 2002

Click to listen to this taped broadcast.

I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD. On today's program, we'll look at Governor Rick Perry's plan to curb malpractice suits.

Rising malpractice insurance rates have become a significant problem for both physicians and hospitals. Physician malpractice premiums are rising as much as 50%. Physicians are leaving Texas, cutting back on their practice and procedures they perform.even leaving medicine altogether. According to the Texas Department of Insurance, medical malpractice suits are prevalent throughout Texas, but the number of lawsuits per physician in South Texas is more than twice the rate in the rest of the state.

Even though 85 percent of Texas medical malpractice cases result in no damage award against the doctor, according to the Texas Medical Association, such cases often cost insurers $50,000 to $100,000 in legal defense costs per case.

However, managed care has added a third party to the decision process for both routine and more sophisticated care. Physicians now must exercise greater involvement serving as advocates for what is best for their patients. Let's use as an example, a new back surgery. First, it has required enterprising, inventive physicians somewhere to convince managed care companies that the new procedure is better than the one formerly used. The goal is to get it on the list for payment by the insurer as an option or standard of care for the diagnosis. Yet that doesn't mean the procedure will be approved for all patients.

Governor Rick Perry has outlined a number of tort reform initiatives that he hopes will address some of the problems plaguing physicians and hospitals. Among the reforms proposed by the governor are:

A $250,000 cap on non-economic damages, including awards for pain and suffering;

Designation of special courts or judges to hear medical malpractice cases;

Limits on attorneys' fees in medical malpractice cases;

Temporary coverage for health care providers who have difficulty obtaining coverage; and

Improved oversight of the liability insurance industry.

The ultimate goal of any legislation should be to create an environment in which doctors and hospitals can provide care without the threat of unwarranted legal action. Then the ultimate beneficiaries will be Texans.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

Archives | Close Window