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Award
caps not solution to tort reform problem
Tort reform has become a national
and statewide cause celebre. It is a signature concern of
President George W. Bush's second term, and it's high on the
priority list again this year of Georgia Gov. Sonny Perdue.
Lobbyists for trial lawyers and
for medical professionals at the national and state levels have
had several years to hone and supplement their arguments in the
national debate that seems to center on fixing outrageous damage
awards, in particular medical malpractice cases.
The reform proposals in President
Bush's package, however, include legal system changes more
far-reaching than just in medical malpractice cases. But it was
a proposal for caps on non-economic damages in those cases that
he rolled out first last week, with great fanfare.
In Georgia, Perdue and the
business community have joined with medical groups lobbying for
the same cure to a problem - but have left too many other
solutions unexplored.
Health care providers and groups
such as the Georgia Hospital Association have long argued that
the viability of the state's hospitals and the availability of
obstetricians, neurosurgeons and other high-risk medical
specialists rely squarely on curbing the high costs of frivolous
litigation. They are pushing for a number of remedies; the most
controversial of them is the cap on awards by juries, designed
to help stop the extravagant increases in malpractice premiums.
That banner is an easy flag to
fly. People think of the McDonald's hot coffee suit and shake
heads in amazement at such judgments.
A poll the GHA released in
November shows that 80 percent of Georgia voters favor some kind
of tort reform legislation. That figure is not surprising.
Patients are experiencing problems with finding doctors, and
they've been convinced by the profession that malpractice
judgments are the culprit driving doctors out of practice.
It's not that simple.
Before the Legislature or
Congress buy into the argument that caps on non-economic awards
are the panacea, they should try to answer these questions for
their constituents: Will caps on non-economic damages deny them
access to justice? Will they guarantee them better access to
medical care? Might other factors be just as important as caps?
We believe some of the
common-sense reforms advocated by GHA could help eliminate
frivolous lawsuits: Abolishing joint and several liability for
damages; limiting expert witnesses to those practicing
specialities specific to the particular case; establishing some
form of arbitration or alternative dispute resolution, and
allowing annuity payments rather than lump sum awards.
The proposal that has not
met the common-sense or legitimacy test is damage caps.
Even the Government Accounting
Office in Washington has put out a report that debunks caps as a
cure-all. While malpractice payouts are a (small) contributing
factor to rising malpractice insurance rates for hospitals and
doctors, the GAO points out that insurance companies'
underwriting miscalculations and financial mismanagement are
what have exacerbated the cyclical swings that malpractice
premiums have historically taken.
GeorgiaWatch, a consumer interest
group that opposes caps, also points to a statement made by the
nation's largest malpractice insurer in a Texas rate hike case:
"Non-economic damages are a small percentage of total
losses paid. Capping non-economic damages will show loss savings
of 1 percent." Texas, like California and 30 other states,
has passed a cap ($250,000 in Texas) but has not seen
significant reductions or even a holding pattern on malpractice
premiums.
GeorgiaWatch and a coalition of
senior- citizen interest groups are pushing to switch the debate
from tort reform to patient safety reform. Their figures show
that 3.5 percent of Georgia's doctors are responsible for 40
percent of the malpractice cases. They want legislative remedies
aimed at a pro-active weeding out of the few bad doctors and
adding a patient's Bill of Rights.
Health care availability is
becoming critical. But addressing only one questionable aspect
of the problem - malpractice jury awards - to the detriment of
the major stakeholders - patients and consumers - does not get
at the cause and effect of our finding and keeping quality
doctors and hospitals.
A reasoned analysis would show
work needs to be done with patients' rights, insurance company
reforms and tort reforms.
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