Was malpractice crisis ever an actual crisis?
By Mary Jo Feldstein 11/28/2003
The governor's in a bit of a pickle.

Nearly a year ago, even before assuming office, then Gov.-elect Ed Rendell promised Pennsylvania doctors he would find $220 million to help pay their malpractice costs.


He was in a bit of a pickle then, too. Doctors throughout the commonwealth -- including more than 40 in Lackawanna County -- were threatening to stop performing surgery or shutter their doors completely.

Mr. Rendell, a Democrat and a lawyer, opposed the reform they wanted most, a cap on plaintiffs' damages. So instead, the famed can't-we-just-sit-down-and-talk- about-this negotiator made them a deal.

He pledged hundreds of millions of dollars and a task force to find long-term solutions. The doctors returned to work.

But as with so many of Mr. Rendell's bold pre-inaugural plans, the Republican-controlled Legislature has been unwilling to fund his physician bailout.

Mr. Rendell's latest proposal uses about $650 million of cigarette taxes and federal money to lower doctors' malpractice costs between 15 percent and 30 percent for three years. Doctors would see the lower bills through a reduction or elimination of their payments to the state's catastrophic fund.

But letters sent out last week told physicians to pay their full MCARE bills because the Legislature has yet to approve a funding mechanism and the fund's more than $375 million in claims come due Dec. 31.

Some legislators say they'll only talk about the governor's medical malpractice priorities if the General Assembly's willing to talk about caps. Others say the Legislature shouldn't be talking about subsidizing doctors at a time when schoolchildren and libraries are going without.

And there are the whisperings that the medical malpractice "crisis" was never a crisis at all.

When Mr. Rendell made his promise, the state medical society said doctors were "fleeing the state" because of rising malpractice costs. The threat was particularly sharp in Scranton, where orthopedists, obstetricians, neurologists and even the region's only trauma center had an- nounced plans to close, and in some cases, had already cut back on services.

No state agency has a running count of how many doctors are leaving the state. But the state Department of Insurance tracks how many pay into the state's catastrophic fund, a requirement for practicing here.

A recently revised count shows more physicians are practicing in Pennsylvania now than before premiums started to jump. The department reports 35,180 doctors paid into the fund in 2002, 50 more than the previous year and 1,000 more than in 2000.

The medical society says it's skeptical of the numbers, which are often the subject of revision and do not separate primary care doctors from the more high-risk specialists who are typically most vulnerable to rising premiums.

Nearly all of the local physicians who threatened to cut back are still here and performing the same services they have for decades.

So now Mr. Rendell is searching for money for doctors in a particularly tight and contentious budget year while statistics are showing the feared doctor exodus has yet to occur.

The state's health care czar says she has another problem. The Pennsylvania Medical Society has lacked enthusiasm for the governor's bailout proposal, even though it would lower some doctors' malpractice bills by tens of thousands of dollars, said Office of Health Care Reform Director Rosemarie Greco.

Though the medical society has released statements supporting the governor's efforts, earlier this month Ms. Greco said she was "dismayed" and "frankly could not understand" why the society had not been more supportive.

The medical society and other proponents of caps on damages might be opposed to the abatement because lowering premiums diminishes the urgency for additional tort reforms.

And for Mr. Rendell, the abatement allows doctors to pay premiums in line with other states, including some with caps, without enacting a tort reform he philosophically opposes.

Again the debate over rising medical malpractice costs comes down to a debate over whether to change the state constitution and limit plaintiffs' damages.

Physicians and others in favor of caps say limiting plaintiffs' damages, at least for pain and suffering, is essential to permanently lowering premiums and limiting frivolous lawsuits. They point to states like California that have both a $250,000 cap on pain and suffering damages and lower premiums.

Attorneys say there's no proof caps always work and they limit injured patients' ability to sue when the real problem is greedy insurance companies.

Enacting any cap on damages would require a constitutional amendment. Constitutional amendments require two consecutive sessions of the General Assembly to pass a resolution and then a statewide referendum. Then subsequent legislation authorizing a specific cap would have to pass the Legislature and survive any legal challenges. Experts estimate the earliest a cap would go into effect could be 2006 or 2007.

The state House passed a bill beginning the process earlier this year, but it has stalled in the Senate.

The governor has found an unlikely ally in the debate over caps. Some members of the Senate Republican caucus, including President Pro Tempore Robert Jubelirer, R-Blair, are apprehensive about caps, particularly the $250,000 cap on pain and suffering damages physicians endorse.

Mr. Jubelirer thinks a $250,000 cap is unfair and the constitutional change that passed the House does not specify the amount of the cap, said Drew Crompton, a senior aide to Mr. Jubelirer.

"I think real people want to know a number before they make a decision on whether to support caps," Mr. Crompton said.

Senate Democratic Leader Robert Mellow of Peckville said he doesn't think a $250,000 cap would ever pass.

"If a cap ever does happen, I think it would exceed $1 million," said Mr. Mellow, a longtime opponent of caps.

For now, Mr. Mellow said he will continue negotiating with the Republican leadership on the budget and some abatement could be included in their final compromise. He met with Senate Republican Leader David Brightbill, a couple of other senators and a select group of staff last week. They have another meeting planned for Tuesday.

"I'm still optimistic that we'll get it done by the end of the year," Mr. Mellow said.

 

İScranton Times Tribune 2003