5-17-06 - LIABILITY UPDATE - PA Primary rocks Harrisburg, front groups, more

by Donna Baver Rovito, Editor, "Liability Update"
Author, "Pennsylvania's Disappearing Doctors"


This LIABILITY UPDATE "newsletter" is a free service which I provide, as a volunteer, to help supply medical liability reform and crisis information to physicians, patients and physician advocates.  I am not employed by any physician advocacy or liability reform organization.

Opinions and clarifications are my own, and do NOT reflect the official position of any physician or patient advocacy organization unless stated as such.  Opinions are placed in double parentheses ((xxxxxx)), italicized and appear in blue. 

This Update is emailed to approximately 8,000 health professionals and physician and patient advocates.


PLEASE FORWARD THIS IMPORTANT INFORMATION TO EVERY HEALTH CARE PROFESSIONAL YOU KNOW AND SEND ME MORE EMAIL ADDRESSES SO WE CAN GET THIS INFORMATION TO MORE OF THE PEOPLE WHO NEED IT

If you would like to be added to or removed from the Liability Update Information Network, or if you have information about yourself or a colleague relocating, retiring early, giving up medicine, private practice or curtailing services due to the medical liability crisis please email ROVSPA@aol.com.

Please visit the Liability Update Weblog at:  http://journals.aol.com/rovspa/LiabilityUpdate/ 

 

1....Commentary

2....Harrisburg Online

Richter Scale Election Jolt

3...Philadelphia Inquirer

John Baer | Astonishing defeats for Jubelirer, Brightbill

4...Harrisburg Patriot News

Malpractice system flawed, study finds

5....Pacific Research Institute

Study ranks states from best to worst in tort reform. 

6.....PA Chamber of Business and Industry

PA Chamber: Study Reaffirms Pennsylvania's Reputation of Having One of the Nation's Worst Legal Systems          

7...Allentown Morning Cal

15....Louisville (KY) Courier-Journal

Physician ousts judiciary panel chairman Lindsay

 

1....Commentary

 

Well....I guess Pennsylvania's voters aren't "over it" yet. 

 

There will be big changes in how things are done in Harrisburg in 2007, based on what happened yesterday.  Pennsylvania's sitting legislators should now be aware that Justice Nigro's defeat WASN'T a fluke or a temper tantrum.  PA's voters are demanding more accountability of their elected officials - and that can ONLY be a good thing.

 

Keep up the momentum as we approach the general election in November. 

 

Keep one important thing in mind though - don't get carried away and "throw out" the good ones with the bad - there are many hardworking, dedicated legislators in the PA Senate and House who support quality medical care and are "friends" to the medical community because of that.  A change in leadership might allow one of these fine people (I'm hoping Sen. Jeff Piccola) who have been fighting for medical liability reform on behalf of doctors and patients to rise to a position in which REAL change might occur.  FIND OUT who these people are and support them in November. 

 

And as for those who don't support access to quality health care by reformation (by any means) of our dysfunctional medical "justice" system, we still have a chance to replace them in the fall. 

 

And to those who stepped up to the plate to support a candidate he or she believed in....kudos for your commitment and hard work!

 

There are a couple of new studies out there and it's fascinating to watch how they're being "spun" and by whom...stay tuned...

 

DBR

 

 

2....Harrisburg Online

Richter Scale Election Jolt

Richter Scale Jolt...the Republican State Senate President Pro Temp Bob Jubelirer and the Republican Floor Leader David "Chip" Brightbill both suffered stunning defeats yesterday in their Republican Primary elections...Jubelirer was defeated by Blair County Commissioner John Eichelberger and Brightbill lost to Mike Folmer...Brightbill conceded his election before 10 PM while Jubelirer tossed in the towel about 11 PM...

 

 

The two GOP Senate Leaders were not alone in defeat as incumbent Republican State House Members Dennis Leh, Bob Allen, Steve Maitland, Teresa Forcier, Tom Stevenson, Sue Cornell, Gib Armstrong, Paul Semmel, Roy Baldwin, Pat Fleagle and Peter Zug all wound up on the losing side...incumbent Democrat State House Members Frank Pistella, Fred Belardi, Ken Ruffing, Frank LaGrotta wound up on the losing side of their Primary races but incumbents Joe Preston and Babette Josephs seem to have survived their races by about a hundred votes in tough Pittsburgh and Philly races...State House Democratic Leader Bill DeWeese and Democratic Whip Mike Veon both won going-away in what had been thought to be close contests... ((So the Democrats in their districts were OK with the pay grab and other shenanigans of some state legislators....?  Wasn't Veon the ONLY state legislator to vote AGAINST repealing the pay raise?  Interesting....a little too much donkey-flavored kool aid, perhaps?))

 

Lieutenant Governor Catherine Baker Knoll brushed aside three opponents who challenged her in the Democratic Primary yesterday with more than 63 percent of the vote statewide...political, "Pink Pig", anti-pay-raise activist Gene Stilp finished a dismal fourth in a four-way race...

Lisa Baker won a five way race for the Republican nomination to succeed retiring State Senator Charlie Lemmond in Luzerne County(+)...Representative Chuck McIlhinney won the GOP Primary in his effort to succeed retiring Republican State Senator Joe Conti in Bucks County...

Democrat Andrew Dinniman easily won the State Senate Special Election in Chester County yesterday over Republican Carol Aichele with about 56 percent of the vote...Dinniman will serve the remainder of the Senate term of the Republican Bob Thompson who died earlier this year...both are Chester County Commissioners...

Jason Altmire defeated Georgia Berner for the Democratic nomination to challenge incumbent Republican Congresswoman Melissa Hart in southwestern Pennsylvania...

 

3...Philadelphia Inquirer

 

John Baer | Astonishing defeats for Jubelirer, Brightbill

OK, I'M CONVINCED.

I now believe anything is possible.

I know I said incumbency is king in Pennsylvania, but today the king is dead. At least outside Philadelphia.

Angry voters in central and western counties yesterday assassinated the longtime monarch by ousting the two top state Senate Republicans, Bob Jubelirer and Chip Brightbill.

Combined they have 56 years in office and control the state Senate.

It's hard to overstate how astonishing their defeat is.

They are the first Pennsylvania legislative leaders to lose a primary election since 1964.

Their loss reflects an anti-incumbent mood in rural areas and could presage a period of legislative reform.

Both senators sunk tons of money into re-election efforts, easily outspending opponents by wide margins.

Didn't matter.

Just before 11 p.m., an emotional Jubelirer, the Senate president pro tempore, said, "I never worked harder in my life than I worked in this campaign," a campaign he called, "frankly, just unwinnable."

It was the first time lawmakers faced the electorate since last July's controversial pay grab that raised incumbents' salaries, giving some legislators raises of up to 54 percent.

Voters from areas where the raise is very much an issue, both for its size and the manner in which it was done (2 a.m., no debate, in apparent violation of the state constitution), clearly didn't forget.

There was evidence late last night that several other state lawmakers in central and western counties were headed to defeat.

Jubelirer, a 32-year incumbent from Altoona, was beaten in a three-way race won by Blair County Commissioner John Eichelberger.

He was targeted by newcomer groups such as PA Clean Sweep, Democracy Rising and the Young Conservatives of Pennsylvania, which aired ads blasting him for supporting Gov. Rendell's budgets and income-tax increase and, of course, the pay raise.

Many insiders believed Jubelirer would be saved by the third candidate in the race, C. Arnold McClure, a weekly newspaper publisher/farmer, who was expected to split the anti-incumbent vote with Eichelberger.

Didn't happen.

Brightbill, the Senate majority leader and a 24-year incumbent from Lebanon County, lost to Lebanon tire salesman "Citizen Mike" Folmer, whose only political experience was a brief stint on Lebanon City Council 20 years ago.

In a concession speech before 10 p.m., Brightbill called his loss neither a beginning nor an end but "part of a process of America's self-government."

Clearly, though, he too went down because of the pay raise, even though it was later repealed and some leaders, including Brightbill, apologized for it.

Brightbill's race was the uglier of the two.

It included a last-minute TV ad involving a woman with whom Folmer admitted having a decade-old affair - a woman who later sued Folmer, claiming bad financial advice.

It also involved a charge from the Folmer camp suggesting Brightbill supporters might have killed a kitten, Twister, owned by Folmer's press aide.

Brightbill's spokesman dismissed the suggestion, saying, "I can't emphasize enough how much I love cats."

Only in Pennsylvania.

Last night, though, was perhaps the most surprising in modern Pennsylvania political history. Who knows where it ultimately leads?

All I know is I now am willing to believe anything is possible.

Send e-mail to baerj@phillynews.com 

 

 

4...Harrisburg Patriot News

Malpractice system flawed, study finds

Wednesday, May 17, 2006

BY DAVID WENNER

 

((More on this report, and the way that reform opponents are "spinning" it, in the next Update...))

Doctors and lawyers clash on just about everything when it comes to medical malpractice lawsuits.

But a new study might give them something to agree on: The present system of using lawsuits to handle medical malpractice claims isn't good for anyone.

"I do not defend the present system at all," said Cliff Rieders, a personal injury lawyer. "I think money is wasted unbelievably."

The study's goal was to find out how many medical malpractice lawsuits are frivolous and whether they pose a major financial drain. Doctors and hospitals, along with President Bush, argue such lawsuits are the main cause of skyrocketing medical malpractice premiums and a major threat to health care in the United States.

Frivolous lawsuits also are regularly cited in the push for putting limits on noneconomic damages in medical malpractice lawsuits.

The study, "Claims, Errors and Compensation Payments in Medical Malpractice Litigation," is published in the current edition of the New England Journal of Medicine. It looked at 1,452 closed medical malpractice lawsuits. It found 37 percent involved no medical error, and an additional 3 percent included no proof of injury.

It also found, however, that the courts usually ruled against the plaintiffs in those cases, and they didn't account for a large portion of medical malpractice costs.

On the other hand, it found that, among the 63 percent of cases that did involve errors, the injured person received no compensation in more than a quarter of those cases.

Previous studies have suggested that the vast majority of victims of medical negligence never file claims.

With that in mind, the authors said the new study provides further evidence that the present system allows the vast majority of medical malpractice victims to go uncompensated.

The study also concluded that the system is extremely expensive: The cases it looked at had a total cost of $449 million, with more than half if it going to lawyers and administrative costs, rather than to the injured people.

Dr. Bret DeLone, a local surgeon, said the fact that 40 percent of the cases involved either no error or no injury is evidence of a broken system.

Further evidence, he said, is the finding that, among cases where there was a payout but no evidence of error, the average payout was $313,000.

Yet he also said, "There's no question this system does not adequately serve genuine victims."

For DeLone, the need to cap noneconomic damages awards is more urgent than the problem of uncompensated victims. Threat of lawsuits, he said, is causing doctors to leave Pennsylvania after they finish training, and it is affecting the care received by millions of Pennsylvanians every day. ((Only 7.8% of residents trained in PA stayed in PA in 2004....yet only 10 years ago, half stayed...))

Noneconomic damages are the so-called "pain and suffering" damages, and proposals on the state and federal level would cap the amount a person could receive. However, people would have no limit on the amount they could seek for lost wages or economic damages caused by injuries. ((Economic damages include lost potential wages and benefits, a lifetime's worth, if necessary, home care, medical care and medicine, cooking, house cleaning, child care, special devices or vehicles to accommodate handicaps, physical therapy, psychological counseling - virtually ANYTHING to which an estimated cost can be attached to make an injured party as whole as possible.....))  Some legal experts say the possibility of a large pain and suffering award is needed to make it financially worthwhile for a lawyer to take a case. Capping such awards, they argue, would prevent some victims from filing claims. ((Aw, gee, and here I thought they weren't IN it for the money....))

DeLone said he supports a switch to special medical courts that would compensate all victims fairly.

Jim Redmond, senior vice president for legislative services for the Hospital & Healthsystem Association of Pennsylvania, also views the new report as further evidence that many malpractice lawsuits lack evidence of errors.

But he noted that malpractice lawsuits filed in Pennsylvania have dropped. That could reflect the success of Act 13, the 2002 state law intended to weed out frivolous lawsuits, he said. ((Perhaps the number of suits filed has dropped - but the number of DOCTORS SUED is up...considerably.  Why doesn't anyone ASK the State Medical Board about those figures before commenting or writing articles....?))

Redmond agreed there are more victims of medical errors than lawsuits.

"We have always wanted to take a look at what we could do to change the system so more people were compensated for preventable errors," he said.

Redmond said hospitals support a no-fault system that would compensate injured victims using a schedule of payments based on severity of injury. He expects to soon see a proposal introduced in the state Legislature. ((Thanks, in part, to Sen. Jane Orie, for pushing to study alternatives in Pennsylvania....))

Rieders, the personal injury lawyer, is also a member of Pennsylvania's Patient Safety Authority, which collects reports of medical errors and studies them.

He puts little significance in the finding that 40 percent of cases involved no error or no injury. ((Perhaps Mr. Rieders considers millions of dollars spent defending meritless suits insignificant, but when each and every one of those cases costs $25,000 to defend to dismissal or $85,000 to defend in court, the amount of money wasted is most definitely "significant"...)) He contends that reflects the fact that, because doctors and hospitals are secretive about unfavorable medical outcomes, patients often file lawsuits just to find out what happened. ((Uh huh.....and the lawyers who file those suits are only looking for the "truth" as well, right....?))

Cliff Shannon, the president of an association of small businesses and a health care reform proponent, sees the study as evidence of a system that directs far too much money to administrative and legal costs and that allows far too many injured patients to go uncompensated.

Pointing to the high number of hospital-acquired infections reported in Pennsylvania, he noted that many are considered preventable, yet few have resulted in lawsuits.

"We have the same things happening over and over again, and nothing gets fixed. If we were serious about protecting patients, the whole liability system would be geared toward preventing injuries to patients," he said.

Dr. William Sage is a physician and law school professor who has studied medical malpractice in Pennsylvania. He said the study provides further evidence the present system is indefensible. The discussion needs to move beyond the debate over capping damages in lawsuits and focus on "streamlining the system for handling legitimate claims and also for preventing medical errors," he said.

Sage said it's time for the federal government to launch demonstration projects to test alternative methods for resolving cases.

DAVID WENNER: 255-8172 or dwenner@patriot-news.com

((I received this personal note from Dr. Sage when I emailed him this article, with my comment that they'd finally quoted him correctly:

 

"Hi, Donna:

Thanks for sending this.  Yes, I was finally quoted correctly!

 

I think this is a very good news story (and research study) for your readers to think about.  Everyone who was quoted by the journalist was thoughtful, not knee-jerk, and made a meaningful contribution to the debate.  The findings are quite clear that malpractice litigation doesn't work well for anyone, except those paid to administer it.  And most of the administrative people would do just fine in a system that worked better for patients and physicians.

Best

Bill
 

William M. Sage, MD, JD"))
 

 

5....Pacific Research Institute

Study ranks states from best to worst in tort reform. 

((via Nick DiNubile....Thanks, Nick!))

 

The U.S. Tort Liability Index 2006 Report, just released by the Pacific Research Institute, explains that states which have reformed their tort cost systems attract more jobs and businesses than states with high tort costs. The study’s data ranks Texas at the top and Vermont at the bottom in terms of monetary caps on damages and tort reforms. The study also categorizes states regarding their potential to keep and attract businesses. In considering variables among states, researchers included monetary caps and legal rights and responsibilities in medical liability lawsuits, as well as areas such as product liability and number of cases per 100,000 residents.  For more information:

For links to the data tables:

 

Contact:
Sean McCabe: 703-683-5004 ext. 110
smccabe@crc4pr.com or
Susan Martin: 415-955-6120
smartin@pacificresearch.org

 

Pacific Research Institute Releases First Objective State-By-State Ranking of the Best and Worst Tort Systems in America

 

WASHINGTON, D.C. – In the competition for jobs and capital investment among the states, those states that suffer from high tort costs will continue to lose jobs and businesses to states with superior tort systems, according to a new report released today by the Pacific Research Institute (PRI), a free-market think tank based in California.

 

The U.S. Tort Liability Index: 2006 Report (available at www.pacificresearch.org) ranks all 50 states in terms of relative tort burdens and relative tort reforms.

 

“What’s unique about this study is that it uses objective data, and with that data, can predict the winners and losers in the race for jobs and business investment. For states that don’t institute reforms – a metric factored into the ranking – the writing is on the wall,” said Dr. Lawrence J. McQuillan, co-author of the study and director of Business and Economic Studies at PRI. “We hope that governors and state legislators will use the Index as a tool to assess their tort systems and enact laws that will improve their ranking, and as a consequence, the business climate of their state.”

Texas on Top; Vermont at the Bottom
“Our study found that Texas has the best overall tort climate in terms of relative burdens and relative reforms, Vermont has the worst,” said Dr. McQuillan. “By placing monetary caps on damages and instituting a wide range of tort reforms, state officials have made Texas very attractive for businesses – it’s no surprise that the state has had a strong economy.”

In addition to Texas, the top five states were Colorado, North Dakota, Ohio, and Michigan. At the bottom were Vermont, Rhode Island, New York, Pennsylvania, and Maryland. The higher-ranking states tended to be in the Rocky Mountains and Great Plains, with some top performers – New Hampshire, Ohio, Texas, and Virginia – distributed across the country. The poorest-ranking states tended to be clustered in the Northeast and southern border. The Deep South and parts of the Southeast also ranked poorly.

The Saints, Sinners, and Salvageables
The study also categorized the states in terms of their prospective outlook. “But keep in mind that a state’s fate isn’t sealed. The ‘salvageables’ that have enacted reforms should move up in the rankings, and the ‘saints’ shouldn’t rest on their halos. With the trial bar always searching for legal loopholes and favorable forums, even the saints have to vigilantly guard their reforms.” said Dr. McQuillan.

Saints: The states that are well positioned to stay at the top in future rankings are states with relatively low monetary tort losses that have also enacted some significant reforms that will lower future losses. These states include Kansas, Michigan, Texas, Utah, and Virginia.

Salvageables: The states that are poised to move up in future rankings are those with medium or high relative monetary tort losses that have recently enacted meaningful reforms that will cut future losses. These states include Arizona, Georgia, Idaho, Louisiana, Mississippi, Missouri, New Hampshire, Rhode Island, and South Carolina. Of course, these states will move up only if they don’t enact subsequent laws that counteract the beneficial reforms and if they keep pace with other beneficial reforms enacted by other states.

Sinners: The states that are poised to fall in future rankings or stay at the bottom are those with relatively high monetary tort losses and significant threats that have enacted few if any comprehensive reforms. These states include Alabama, Florida, Illinois, Pennsylvania, and Vermont.

“A poor civil-justice system lowers the standard of living for ordinary citizens,” said co-author Hovannes Abramyan, a PRI public policy fellow. “By limiting job and business opportunities, imposing excessive costs on consumers, and inhibiting innovation in products and services, the many are suffering for the few who gain from unnecessary civil lawsuits,” he said.

About PRI
For 27 years, the Pacific Research Institute (PRI) has championed freedom, opportunity, and individual responsibility through free-market policy solutions. PRI is a non-profit, non-partisan organization. For more information please visit our web site at
www.pacificresearch.org

 

May 11, 2006
Birmingham News: Texas is tops on tort liability index

May 11, 2006
Colorado Civil Justice League: Colorado ranks #2 in protections from lawsuit abuse

 

 

What is tort law and why was the study done?

 

A tort, French for “wrong,” is best defined as wrongful conduct by one
individual that results in injury to another. A tort has been committed when
someone has suffered injury caused by the failure of another person to exercise
a required duty of care. The actor is to blame and the injured party is entitled
to recover damages. The function of torts is to provide the injured party with
a remedy, not to punish the actor. Because of changes in tort law over time, the
United States now has the most expensive tort system in the world.
Individual states generally govern their tort law. Some states have a heavier
tort burden than others, and some have done more than others to reform
their tort systems to reduce excesses and create a favorable business climate
to fuel job opportunities. The U.S. Tort Liability Index: 2006 Report measures
which states have relatively high tort costs and which states have enacted
more reforms to better position themselves for future economic prosperity

 

How does the issue impact Americans?

 

The U.S. tort system is undermining America’s economy. Using the President’s
Council of Economic Advisers’ methodology, we determined excessive
tort costs exceed $198 billion. That is equal to an additional yearly tax of
$2,654 on a family of four. Some states have done more than others to reign
in excessive costs through tort reform. Econometric studies reviewed in the
study show that tort reform increases productivity and employment, boosts
state economic performance and innovation, increases national output and
personal incomes, and saves lives.


A state’s legal system influences business decisions such as where to open a
new store, or whether to hire more employees, introduce a new product, or
build a new plant. States that ranked worse in this study are less likely to
benefit in these areas.


A poor tort system lowers the standard of living for ordinary citizens
through higher prices, higher taxes, lower wages, and less product innovation.
Businesses that spend more each year on liability insurance have less money
available for research and development or health benefits for employees.
The health-care industry is particularly hard-hit by tort lawsuits, which have
driven the cost of health care higher as providers spend more on medical malpractice
insurance and “defensive medicine” procedures. Consumers lose
as a result. Tort law directly affects the daily lives of all Americans. Some
effects are obvious, and others are hidden.

 

What is the goal of the study?

 

The goal of the U.S. Tort Liability Index is to use comprehensive, objective data
on all 50 states to assess the outputs and inputs of each state’s tort system and
rank them accordingly. The Index measures today’s realities (outputs) and
predicts tomorrow’s outcomes by looking at tort reforms (inputs). The study
describes the methodology and variables.


The results are useful in public forums to make more educated decisions
about the condition of each state’s tort system and what types of reforms
are necessary, if any. The study also highlights the economic consequences
of a poor liability system. A number of states have enacted meaningful legal
reform, but many have not, making them less competitive in the U.S. and
global markets of the 21st century.

 

What was the general outcome of the study?

 

States in the Rocky Mountains and Great Plains tend to have better tort
systems, meaning they have lower relative monetary tort losses and threats,
and have more substantive and procedural reforms. Texas leads the overall
rankings, followed by Colorado, North Dakota, Ohio, and Michigan. Texas
has relatively low monetary tort losses and has enacted meaningful reforms in
asbestos, junk food, government-standards defense, and rules of evidence.
At the bottom of the list are states primarily in the Northeast and the Southwest,
plus Florida. The bottom five states are Maryland, Pennsylvania, New York,
Rhode Island, and finally Vermont. Vermont has relatively high monetary tort
losses, no damage caps, and no meaningful reforms in class actions, attorney
fees, asbestos, construction, junk food, jury service, or venue.

 

What were the factors you looked at?

 

We included data on 39 variables, which we divided into five subgroups:
monetary tort losses, threats, monetary caps, substantive-law rules and
reforms, and procedural/structural rules and reforms. We show where each
of the 39 variables falls within the lawsuit industry. The overall ranking comes
from the average ranking for each state across all 39 variables.
The first two subgroups measure outputs from each state’s tort system. As a
rule, lawmakers and voters do not directly control these variables.

The monetary tort losses subgroup is comprised of 11 insurance and self insurance
tort loss variables, expressed as a loss ratio to permit comparisons
across states (the subgroup high and low: 1-North Dakota; 50-Florida). The
threats subgroup has three variables: judicial hellholes, attorneys per dollar
of gross state product (GSP), and total civil cases per 100,000 residents
(1-Tennessee; 50-Illinois).


The remaining three subgroups include variables that are inputs to each state’s
tort system. Lawmakers or voters can directly control these variables through
legal reform. Monetary caps covers four variables: limitations on appeal
bonds, non-economic damages, punitive damages, and medical-malpractice
damages (1-Colorado; 50-Wyoming).


Substantive law includes 13 variables covering legal rights and responsibilities
in such areas as class actions, medical malpractice, products liability, and
negligence standards (1-Texas; 50-Rhode Island). The procedural/structural
rules and reforms subgroup is comprised of eight variables that deal with how
courts are structured, venue is decided, juries operate, and judges are seated
(1-Colorado; 50-Pennsylvania).

 

 

 

Which states are positioned to stay at the top, stay at the bottom, and are poised to move up in future rankings?

 

Saints: The states that are well positioned to stay at the top in future rankings
are states with relatively low monetary tort losses that have also enacted some
significant reforms that will lower future losses. These states include Kansas,
Michigan, Texas, Utah, and Virginia.


Sinners: The states that are poised to fall in future rankings or stay at the
bottom are those with relatively high monetary tort losses and significant
threats that have enacted few if any comprehensive reforms. These states
include Alabama, Florida, Illinois, Pennsylvania, and Vermont
.


Salvageables: The states that are poised to move up in future rankings are
those with medium or high relative monetary tort losses that have recently
enacted meaningful reforms that will cut future losses. These states include
Arizona, Georgia, Idaho, Louisiana, Mississippi, Missouri, New Hampshire,
Rhode Island, and South Carolina. Of course, these states will move up only
if they don’t enact subsequent reforms that counteract the beneficial reforms,
and if they keep pace with other beneficial reforms enacted by other states. It
is a constant ordinal race.

 

 

 

6.....PA Chamber of Business and Industry

PA Chamber: Study Reaffirms Pennsylvania's Reputation of Having One of the Nation's Worst Legal Systems

HARRISBURG, Pa., May 12, 2006 (PRIMEZONE) -- Gov. Ed Rendell's recent veto of a bill that would have modified the unfair legal doctrine of joint and several liability by re-enacting the Fair Share Act is reflected in Pennsylvania's deplorable ranking among the 50 states for the health of its civil-justice system.

 

 

 

A new study conducted by the Pacific Research Institute on behalf of the American Justice Partnership ranked the Commonwealth 47th worst for the performance of its legal system. The U.S. Tort Liability Index considered 39 factors in five categories: Monetary Tort Losses; Threats; Caps; Substantive Law Rules; and Reform. Only three states -- New York, Rhode Island and Vermont -- fared worse than Pennsylvania.

"The Commonwealth is among the worst for liability laws that reward abuse, impede job creation and result in higher costs on consumer goods and services," said Floyd Warner, president of the PA Chamber.

Warner said the governor's decision to go against his word and reject Fair Share Act re-enactment, the first significant legal reform in the Commonwealth in decades, is counter to what many other states are wisely realizing -- that a healthy legal system is a vital indicator of a state's economic vitality and growth.

Four of the states in the top 10 were also in the top 10 in the 2004 U.S. Economic Freedom Index, which ranks states according to how friendly or unfriendly they are toward free enterprise and consumer choice. Five states, including Pennsylvania, are in the bottom 10 of both indexes.

The study also identified states that are positioned to stay at the top, stay at the bottom, or are poised to move up in future rankings.

Pennsylvania was included in a small list of states poised to drop in future rankings or stay at the bottom because they have relatively high monetary tort losses and significant threats, and have enacted few, if any, comprehensive reforms. Joining Pennsylvania on that list are Alabama, Florida, Illinois and Vermont.

"Inequities in our legal system are just another burden facing job creators; one more factor that has the potential to send job opportunities elsewhere," Warner stressed. "The governor missed an opportunity to send a positive message to job creators, opting instead to ensure that Pennsylvania remains at an economic disadvantage when compared to more progressive states that understand the importance of implementing commonsense legal reforms."

The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with thousands of members representing more than 50 percent of the private workforce. More information is available on the Chamber's website at www.pachamber.org

The PA Chamber of Business and Industry logo is available at http://media.primezone.com/prs/single/?pkgid=353

CONTACT:  The PA Chamber of Business and Industry
          Lesley Smith, Director of Communications
          717-720-5446

 

7...Allentown Morning Cal

Who says that ambulance-chasing lawyers don't have a great sense of humor?

In a press release on Thursday, they attacked a study released earlier that same day, because it came from what they called a ''corporate front group.'' The 91-page study had a ''tort liability index'' on how well the various states keep bogus lawsuits under control.

This front group, said the release, is the Pacific Research Institute. PRI is bogus, it said, because the experts consulted in its tort study did not include any ambulance chasers, or (gasp) any groups affiliated or allied with Ralph Nader.

For some odd reason, their press release did not mention that PRI is admired by some respected people. For example: ''PRI is one of the most innovative and effective think tanks in the world,'' said Nobel Laureate Milton Friedman.

Anyway, the ambulance chasers said that, as a result of such ''front group'' chicanery, PRI's report on tort reform makes the lawyers in many states look just awful. To the surprise of absolutely no one, Pennsylvania is rated dead last in the nation in one key category and is 47th overall.

That unhappy disclosure comes just two months after another report — on lawyer discipline — said Pennsylvania had initiated enough disciplinary reforms to elevate the state from dead last to fifth place. You may recall that, in March, I praised those technical improvements, although I noted that Pennsylvania has a dismal record on tort reform, which lets many lawyers get rich by filing bogus suits, at the expense of everyone else.

I'll get back to that, but first the punch line from these amusing ambulance chasers:

Their press release, attacking the PRI as a front group (tee-hee), did not identify its source as ambulance-chasing lawyers and their allies in Ralph Nader's special interest groups. It said only that it was from the ''Center for Justice & Democracy.'' What could sound more noble than that?  ((Um....the Committee for Justice for All, perhaps?  That's another personal injury lawyer front group....as is the PA Citizens for Fairness....pay attention to the names of the groups.  If they contain the words "consumer," "justice," or "fairness" in them, follow the money....they may CLAIM to be "consumer" groups, but they're likely shilling for the trial bar....))

So what is CJ&D? Why, it's a front group for ambulance-chasing lawyers and demagogues like Nader and Michael Moore. ((Thank you SO MUCH, Mr. Carpenter, for doing your journalistic duty - i.e., a little bit of research - and arriving at the "front group" conclusion on your own....))  So, on Friday, I called Laurie Beacham, author of the release, to ask why it did not identify CJ&D as a front for ambulance chasers.

''Clearly, we would disagree with that characterization,'' she replied, so I used another term: personal injury lawyers.

''No, we're not a front group for personal injury lawyers. We represent consumers,'' Beacham said.

I said CJ&D's board is dominated by lawyers — and consumers harmed by the tobacco industry did not get a dime from that massive settlement, while lawyers got billions .

She did not respond directly to that, so I asked if she did not think her press release represented a bit of hypocrisy.

''No, I don't,'' Beacham said.

Later, I got a call from Joanne Doroshow, president of CJ&D, who insisted that CJ&D works for consumers who have been harmed and cannot get access to the courts for recompense. I asked if she could give me any examples.

She referred to a case in Texas, where there was a cap on ''noneconomic damages'' — meaning the consumer (and her lawyer) could not rake in millions over and above the actual damages she suffered.

I asked her about my favorite tort reform — a modified ''English rule,'' to make those who file lawsuits pay the other side's expenses if it can be proved the lawsuit was bogus.

''The better solution is to sanction the attorney,'' said Doroshow, who is both a lawyer and a Nader associate.

I said that would be great, but cannot happen in Pennsylvania, where, as the PRI study found, procedural and structural rules and tort reforms are in the toilet. (We rank 50th out of 50 states in that category.)

At that point, Doroshow said she had to catch a plane.

She did not seem amused.

paul.carpenter@mcall.com 610-820-6176

 

 

 

8.....Philadelphia Business Journal

Medical malpractice filings decline

Doctors say progress has been made but stats are deceiving

By Jeff Blumenthal

Updated: 8:00 p.m. ET May 7, 2006

The Pennsylvania Supreme Court released state court medical malpractice statistics for 2005 that show a sustained decline in filings and a drop in large jury verdicts in Philadelphia and statewide. While the legal community says it is a sign that lawsuits and trial lawyers can no longer be blamed for so-called med mal insurance rates, doctors' groups contend the state continues to be inhospitable to doctors.

Amid the long-running debate is Pennsylvania's reputation as a place to practice medicine. Doctors' advocates have long contended that physicians who practice in high-risk specialties such as obstetrics and neurosurgery are in short supply and that, while many doctors are educated in the state, they generally choose not to stay. ((Only 7.8% of they stayed in 2004....down from over 50% a decade earlier...am I the only one who is scared half to DEATH by that number.....?))

The new data show the number of med mal cases filed in Pennsylvania has dropped from 2,903 in 2002 to 1,698 last year. Filings are down almost 38 percent compared to the average between 2000 and 2002 and have decreased by 55 percent in Philadelphia when compared to the same time period.

Filings and verdict numbers start to dip in 2002 and 2003 when the legislature passed the Medical Care Availability and Reduction of Error (Mcare) Act and the state Supreme Court introduced rules for change of venue, which moved a number of cases out of Philadelphia and to the suburbs, and made lawyers secure a certificate of merit for their cases. Philadelphia juries have a reputation for awarding large judgments against health-care providers.

The number of cases filed in the city reached a peak of 1,365 in 2002 but plummeted in 2003 to 577 and have hovered around that number in 2004 and 2005, when there were 559 and 540 cases filed. Conversely, Montgomery County, which had a combined 79 cases filed between 2000 and 2003, saw a dramatic increase in the past two years. There were 102 cases filed there in 2004 and 104 last year.

The 2005 numbers in Montgomery County represented a 380 percent increase from the average number filed between 2000 and 2003. Bucks County experienced a 19 percent rise and Chester County saw a 6 percent increase while Delaware County had a 13.5 percent decline.

Jury verdicts also decreased in number and monetary value. ((If they have that data, why didn't they release the TOTAL payouts?  I suspect it's because that number is HIGHER than in the previous year.  Total payouts rose 13.5% from 2003 to an all-time high of $448 million in 2004....)) In the 223 medical malpractice jury verdicts reached in 2005 statewide, 80.3 percent were defense verdicts, only 5.8 percent were greater than $1 million. None exceeded $10 million. ((And yet, in each of those 80.3% of cases, it cost the doctor, whom the jury found to have done NOTHING WRONG, roughly $85,000....))

From 2000 to 2003, there was an annual average of 326 cases filed, with 73 percent resulting in defense verdicts, 10.4 percent greater than $1 million and 1.2 percent higher than $10 million.

In Philadelphia, there were 56 jury verdicts during 2005, with 62.5 percent being verdicts for the defense, ((still giving away other peoples' money in Philadelphia....)) and 14.3 percent exceeding $1 million in judgments. All 15 of Montgomery County's decisions resulted in defense verdicts and all 10 in Delaware County were defense verdicts. Six of seven in Bucks County were defense verdicts and five of seven in Chester County were.

Between 2000 and 2003, more than 20 percent of all jury verdicts in Philadelphia resulted in awards exceeding $1 million while 59.2 percent were defense verdicts. There were nine cases with verdicts higher than $10 million during that span.

Shanin Specter of Kline & Specter, one of the city's leading plaintiff personal injury firms, said the decline in filings and verdicts has caused many firms to decrease the percentage of med mal cases they handle and diversify their practices into areas such as mass tort, class action and employment.

"I've been waiting for doctors to declare victory but they haven't," Specter said. ((Don't hold your breath, counselor....tell us about a reduction in premiums of about 50 or 60%, to bring rates down to circa-2000 levels, and maybe doctors will declare "victory.")) "There are some doctors out there who are still angry and won't be happy unless no one can get sued for anything." ((I'm sorry - would YOU be "happy" if your annual house payment had gone up 247% in the past five years, and you got NOTHING more to show for the extra expenditure?))

Doctors' groups were not swayed by the numbers. Ken Kilpatrick, spokesman for the Politically Active Physicians Association, said his organization is pleased that venue shopping has been addressed but believes caps on pain and suffering damages are needed. He said the decline in Philadelphia cases has resulted in a "suburban sprawl" of filings in outside the city. He said Chester County once had six neurosurgeons. It now has one, who practices part-time because specialists in high-risk areas can't afford the insurance.

"This has gone from a crisis to a catastrophe because people are dying due to diminished access to health care," Kilpatrick said. "Doctors are still leaving the state and others are curtailing services because the insurance rates are too high. And there's nothing to hold back cases from exploding at any time because there are no caps on pain and suffering damages."

Charles Moran, spokesman for the Pennsylvania Medical Society, said the numbers do show positive signs in that the number of filings are down. He said they also prove the point doctors had been trying to make about venue shopping in Philadelphia and frivolous lawsuits, which have been curtailed somewhat by the certificate of merit rule. But he said the numbers don't take into account that total payouts from insurers and underwriters have not declined in recent years. According to the U.S. Health Resources Services Administration, Pennsylvania total payouts were listed at $398.9 million for 2002, $394.5 million in 2003 and $448 million in 2004. No numbers are yet available for 2005.

Robert Surrick, executive director of Doctor's Advocate, said the high court's statistics are misleading.

"The number of case filings is irrelevant; it is the number of doctors being sued that is important and impacts the health-care delivery system," Surrick said. "Trial lawyers always name more than one physician on one lawsuit, so more than one doctor is named in one case. The more doctors that get sued, the higher malpractice premiums will rise along with the number of doctors who will leave the state, close their practice and curtail services."

But Nancy Kippenhan, chief of the prosecution division for the Pennsylvania Medical Board, said there are no clear statistics to determine whether the number of doctors sued has increased. She said the Medical Board opens a file every time a doctor reports being sued or fails to report being sued, but doctors have 60 days to report cases and many don't report them at all. There are currently 429 doctors being investigated for not reporting. ((So there are actually MORE physicians being sued than even the state medical board is tracking...))

There were 3,016 physicians' files opened during fiscal year 2004-05, up from 2,100 in fiscal year 2003-04.

Specter said there are lots of cases where only one doctor is listed as a defendant.

"And even if there are cases where more than one is being sued, if there is a 38 percent decrease in filings, obviously the number of doctors being sued has gone down," he said. "And when a case is filed, you need a certificate of merit from a medical specialist to proceed, which has reduced the number of doctors [named as defendants in each case]." ((Um.....then why is the number of doctors self-reporting being named in suits increasing?  And, just for the record, the certificate of merit doesn't require that personal injury lawyers like Atty. Specter actually obtain and file a statement from a doctor stating that there is reasonable cause for a suit - it just requires that the lawyer SAY he or she has such a thing.  The doctor doesn't even need to be identified....))

 

9....Doctor's Advocate Response

Misleading print media reporting

TO: All Pennsylvania doctors

FROM: Robert B. Surrick, Esquire

              Executive Director, Doctor’s Advocate 484-688-8218

DATE: May 14, 2006

 

     A fraud is being perpetrated on every citizen of Pennsylvania by Chief Justice Cappy and Governor Rendell. The print media, without analyzing the available data, goes along. In April, Justice Cappy put out cherry-picked statistics purporting to show that medical malpractice filings are in a “sustained decline.” Using the Supreme Court numbers, which compare 2001 and 2002 against 2005 numbers, Governor Rendell declares that the “crisis has abated significantly.” The print media goes along with this misleading information by printing articles such as “Signs of crisis fading” (Philadelphia Inquirer, January 2, 2006) and “Medical malpractice filings decline” (Philadelphia Business Journal , May 5, 2006). In point of fact, the case filings have been steady for the last three years: 1,712 in 2003, 1,816 in 2004 and 1,698 in 2005. There is no “sustained decline”.

 

    THE NUMBER OF LAWSUITS FILED IS IRRELEVANT—MEANINGLESS. IT IS THE NUMBER OF DOCTORS SUED THAT IMPACTS THE HEALTH CARE DELIVERY SYSTEM AS DOCTORS RETIRE EARLY, LEAVE THE STATE, CURTAIL CERTAIN PROCEDURES LIKE DELIVERING BABIES, AND MEDICAL RESIDENTS FLEE (92% IN 2005) TO AVOID OUTRAGEOUS INSURANCE PREMIUMS AND THE ONSLAUGHT OF LAWSUITS.

 

Below are statistics I obtained from the Pennsylvania Medical Board      which show an alarming increase in the number of doctors sued. If you haven’t been sued, you will be. It is only a matter of time.

 

Number of Pennsylvania Doctors Named in Lawsuits

 

START        END           MONTHS     # DOCS SUED    TOTAL    PER MONTH   PER DAY

 

5/22/02      3/1/05             31                6,185              6,185          200                6.1                     

 

3/1/05       10/31/05           8                 1,784              7,969          223                7.3         

 

10/31/05   4/1/06               5                 1,332              9,301          266                8.8    

 

The total number of doctors named in lawsuits in fiscal year 2003-04 was 2,100. The following year, in fiscal year 2004-05, the number rose to 3,016, an increase of 43%

 

The source for all statistics is the Pennsylvania Medical Board.

 

The Board began keeping track of lawsuits filed against doctors on May 22, 2002, when Act 13 was passed requiring doctors to report when they were sued.

 

10....Issues PA Release

Medical Malpractice in Pennsylvania: The Impact of Recent Reforms - Is It Too Soon to Tell?


Medical malpractice has been a hot health care policy topic, nationally and in Pennsylvania, since the 1970s. In 2006, the issue has staying power because it can reach crisis proportions any time, and because it affects all aspects of health care policy.

(April 2006) For decades, medical malpractice has been a major concern in Pennsylvania. Why? It impacts the cost of health care because malpractice insurance costs and, more importantly, the costs of defensive medicine are paid, in part, through higher insurance rates. It impacts access because medical malpractice may drive physicians away from high-risk specialties. It impacts quality to the extent the medical malpractice climate affects how health care practitioners do their job.

The most recent malpractice insurance crisis – one of availability and affordability – arrived in 2000. Mirroring national trends, insurance companies which had been enjoying high investment earnings during the 1990s and were able to offer attractive premium pricing to build market share encountered serious financial difficulty as equity markets weakened. The number of paid physician claims per 100,000 Pennsylvanians grew 23% between 1990 and 2001, compared to nationwide growth of about 11%. Three of the 5 major private medical liability insurers ceased writing policies in Pennsylvania after 2001. And insurance premiums rapidly increased in certain high risk specialties such as neurosurgery and orthopedic surgery, if coverage was available at all except through the state’s insurer-of-last-resort.

How has state government responded?

In 2002, a coalition of stakeholders and state government leaders developed legislation that became the “MCARE Act.” The goals were to make the medical malpractice insurance system more stable and less prone to destructive cycles, to make coverage more available and affordable, and to improve patient safety. The Council of State Governments commented, “Pennsylvania is unique in that the MCARE Act reform package addresses all three aspects of the problem, patient safety, legal reforms to reduce the number of frivolous lawsuits and excessive rewards, and financial reforms initiating insurance restructuring.”

After the MCARE Act, other significant legislative pieces followed. And, in 2004, the Pennsylvania Supreme Court implemented changes to the rules of civil procedure to both reinforce the MCARE legislation and to effect reforms of its own.

Some of the significant reforms of the early 21st century:

  • Pennsylvania became the first state in the nation to require reporting of adverse events and near misses. 

  • To help reduce the number of medical errors and improve patient safety, the state created a Patient Safety Authority to review medical error data and make recommendations on how to avoid errors. 

  • The courts implemented changes to reduce the number of frivolous lawsuits and excessive rewards and to make the system more predictable and stable. 

  • There’s now a restriction on “venue shopping” in Pennsylvania: a lawsuit must be filed where treatment actually occurred. 

  • New rules of civil procedure address pretrial procedures and litigation and require lawyers for the plaintiff obtain a “certificate of merit” establishing the medical work in a case falls outside acceptable standards. 

  • Another new law provided abatements for MCARE assessments owed by physicians and nurse-midwives. Originally targeted to cover calendar years 2003 and 2004 – approximately $220 million per year – the abatement has been renewed annually at the same subsidy level.

Although they’ve been discussed and debated, “caps” on non-economic damages have never been legislated.

What are the results?

It’s too early to know for sure. Determining progress requires three measures: payouts from the MCARE fund, premiums for physicians, and the availability of liability insurance. So far the results are mixed. To learn more, read this
IssuesPA Article.

MCARE payouts: According to the Pennsylvania Department of Insurance, which administers the MCARE fund, MCARE payouts were lower in 2004 than in 2002 and 2003 – $318.9 million in 2004 compared to $348.1 million in 2002 and $376.8 million in 2003. Payouts for 2005 were lower again. The assessment fees charged to doctors to support the fund dropped significantly for 2006. ((It is vitally important to note that the proportion of MCARE payouts as compared to commercial payouts has altered significantly as a result of legislation passed in 1996, or, according to the PA Medical Society, "Reductions in Mcare coverage enacted in Act 135 of 1996 have worked their way through the courts.  Pursuant to Act 135, Mcare coverage (and exposure) dropped from $1 million in 1996 to $900,000 in 1997 and 1998, to $800,000 in 1999 and 2000 and to $700,000 in 2001.  Private carrier exposure INCREASED correspondingly during that period, as the total insurance requirement remained constant at $1.2 million."  The Mcare Act, passed in 2002, decreased that total mandated level of insurance to $1 million from $1.2 million.  So what we need to be looking at here are TOTAL payouts, not just Mcare numbers....and total payouts were up 13.5% to an all time high of $448 million in 2004....))

Premium costs for physicians: Despite the recent good news from the MCARE Fund regarding lower claims payouts and assessment levels, the real question is whether total costs – both primary insurance premiums and MCARE assessments – are under control. In 2005, total costs for most physicians did not decrease significantly. Major insurers didn’t request a rate increase for 2006, but the medical community says premiums still are much too high. ((For example, PMSLIC raised rates a cumulative total of 247% since 2000 - and MANY physicians did see increases in 2006...)) And the Governor and legislature still must decide in future years whether to continue to MCARE abatements – a $200 million relief package for physicians.

Availability of liability insurance: Non-traditional insurers continue to enter the market – many of them risk-retention groups that are exempt from state rate-setting and other important market controls. Traditional insurers, however, have not returned, suggesting that Pennsylvanian’s liability insurance market does not have the predictability and stability that insurers prefer. In some cases, the traditional insurers that remain have reduced their business in Pennsylvania over the last few years through non-renewals and limitations on new business they’ll cover.

While the formation of risk-retention groups is good news that there are more insurance options for some physicians, the good news may be offset by the risk. The exemptions the non-traditional insurers enjoy may expose those insured to personal risk for the insurer’s liabilities in the event of insolvency.

Because of the unstable market, over 1,900 physicians (out of approximately 34,000) now are forced to obtain coverage – expensive coverage – from the Joint Underwriting Association (JUA), the state-operated insurer-of-last-resort. While 1,900 may seem to be a relatively small number, it reflects a 450% increase since 2001.

Bottom line?

Moving forward, lawmakers and advocates must strike a careful balance: 

  • First, determine the impact of current reforms and allow time for them to work. 

  • Second, monitor them carefully to make sure they’re being implemented appropriately. 

  • Third, continue to seek more ways to help assure long-term access to a high-quality health care system for all Pennsylvanians.

In 2006, policymakers and candidates would be wise to monitor this volatile issue.

 

 

11...Pennsylvania Physicians for the Protection of Specialty Care (3PSC) Release

Pennsylvania Patients Lose Another Specialty Surgeon to Medical Liability Crisis 

While Senators in Washington, D.C. debate whether or not to enact common sense medical liability reforms such as those in S. 22, the Medical Care Access Protection Act of 2006, patients in Pennsylvania have lost another specialty surgeon to a state with a more balanced medical liability system.

PA Physicians for the Protection of Specialty Care – 3PSC President Scot Paris, M.D. said Adam M. Freedhand, M.D. an orthopaedic surgeon with Chester County Orthopaedic Associates is leaving for California where his medical liability insurance premium will be significantly less and he will be able to practice medicine without the constant threat of frivolous lawsuits.

"Pennsylvania is losing one of its finest young surgeons with Dr. Freedhand's move," Paris said. "Pennsylvania's rapidly aging population has a growing demand for specialized medical care at a time when the state's out-of-balance legal system is sending our top docs out of state or out of practice."

Freedhand, 40, leaves a busy practice in sports medicine and joint replacement surgery in the Chester County area where he and his four colleagues serve 13,000 patients annually.

"Losing another specialty surgeon, puts pressure on an already fragile healthcare system in our state," Paris explained. "Surgical practices here continue to face great difficulty recruiting doctors to Pennsylvania – even when the doctor has been trained at one of our great institutions here. We need common sense medical liability reforms to strengthen our healthcare system."

3PSC represents high-risk specialty surgeons such as orthopaedic, general and thoracic surgeons, neurosurgeons and obstetricians and their patients to preserve world-class medical care through common sense medical liability reforms and best practices in patient safety. To find out more about 3PSC visit our website at www.3psc.org.

Check out 3PSC's advertisement in Pittsburgh Magazine's Top Docs issue and Philadelphia Magazine's Top Doctors issue this month.

3PSC has launched a cooperative effort with the Pennsylvania Patient Safety Authority to promote the independent agency's patient safety advisories. Physicians can sign up for quarterly Patient Safety Advisories, which fulfill physician's requirements for Continuing Medical Education credits in patient safety and risk management. Click here for more information

 

12....Patriot News

Letter to the Editor - Doctor Shortage

04/12/06

 

There is and will continue to be, barring reform in tort law, a shortage of doctors in Pennsylvania in high-risk specialties -- obstetrics, neurosurgery, cardiac surgery and general surgery.

 

However, we train plenty of doctors in Pennsylvania at excellent state-subsidized medical schools who elect to practice elsewhere because of the problems caused by the Pennsylvania Constitution. The constitution prohibits the Legislature from enacting laws that would reduce jury awards in personal injury tort cases. Hence we have no pain and suffering caps. Doctors swarm to states such as Texas and California, which have caps and hence lower premiums for medical malpractice insurance.

 

The fix proposed by The Patriot-News, taxpayer-paid medical school tuition, is like putting a Band-Aid on a massive chest wound. It does not