KRLD Radio

The Business of Health Care Report
Medical Liability Reform - April 2003


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Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

My topic today is medical liability reform.

By all accounts, medical malpractice insurance coverage has reached crisis levels. Physicians are protesting skyrocketing rates for liability coverage. Some doctors are closing their practices or leaving Texas. And patients - many in the state's most underserved areas - are finding health care scarce or nonexistent.

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. In June 2002, the American Hospital Association found that more than 1,300 health care institutions have been affected by the medical malpractice crisis.

The causes of the medical malpractice insurance crisis are many: exorbitant jury awards, settlements predicated on fears of large jury awards and increasing numbers of frivolous malpractice claims.

Every Texan deserves access to medical care. Yet medical malpractice lawsuits are limiting access to medical care and driving up health care costs for all Texans. We must resolve the problem.

Real changes in Texas' tort laws must be swiftly enacted if we are to avert a major crisis. Reforms should include caps on economic damages and limits on plaintiff attorney contingency fees.

The AMA has called Texas one of the five worst litigation environments in the United States, and lawsuit abuse affects every facet of our lives. Lawsuit abuse hampers economic development, job creation and patient access to vitally important medical care. The recent exodus of physicians and practice groups from the state, and the threatened shut down of high-risk medical services and trauma centers, is a wake-up call that must be heeded.

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.

Sources:

  • American Medial Association
    http://www.ama-assn.org
  • American Hospital Association
    http://www.hospitalconnect.com
  • U.S. Department of Health and Human Services
    http://www.hhs.gov
  • Texas Health Resources Policy Issue Summary. Adopted May 9, 2002

  • Doug Hawthorne

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