Medical Liability Forum

Washington, D.C.
February 11, 2003

Good morning, ladies and gentlemen, and welcome to the Chamber of Commerce of the United States.

I'm Tom Donohue, the Chamber's president & CEO, and I'm pleased to kick off this forum on health care liability reform, a joint venture of the Chamber's Institute for Legal Reform, the National Chamber Foundation, and the Coalition for Affordable and Reliable Healthcare.

In addition, we are very pleased to be partnering today with the American Medical Association, Cigna, Congressional Quarterly, and the American Association of Nurse Anesthetists [A-NEST-THE-TISTS].

Without their help, this event wouldn't have been possible.

We're here today to draw attention to a severe crisis in our health care system—one that deeply threatens access to care and affordability of coverage.

Trial attorneys have turned our health care system into a jackpot lottery game. The average jury award in medical malpractice cases has tripled since 1994, driving up medical liability insurance premiums by more than 500 percent.

As a result, doctors are walking off the job in protest, moving their practices to more tort-friendly states, or retiring early. Facing similar challenges, hospitals are curtailing specialty services and clinics are shutting their doors.

The American Medical Association—which is represented here today by Dr. Palmisano [PAL-MA-ZANO], its president-elect—has identified a dozen states where patients are being denied care because doctors can't afford medical liability insurance.

An additional 31 are considered on the brink of a crisis. If you do the math real quickly, you realize that access to critical health care services is a serious problem in 43 of 50 states. This is completely unacceptable.

No pregnant woman should have to worry about finding a physician to deliver her baby. No ambulance carrying an auto accident victim should have to drive past two hospitals to find an emergency room that can take the patient.

In many instances, this is a matter of life and death—literally.

But this crisis touches the lives of all of us—not just doctors and patients who are denied care.

Health care lawsuits are a key driver of employer health care costs, which are increasing by double digits every year. One study found that litigation is responsible for 7% of the growth in health plan costs.

In addition, the threat of malpractice lawsuits is causing providers to order unnecessary tests and procedures—at employers' expense—"just to be safe."

A recent Harris poll of West Virginia physicians found that the fear of litigation caused 84% of them to order more tests than they would have based solely on their professional judgment…81% had referred patients to specialists…and 59% percent had recommended invasive procedures such as biopsies to confirm diagnoses.

Too much health care treatment is as bad as under-treatment and is a waste of precious health care dollars.

Finally, employers and communities suffer when hospitals stop providing care and doctors move away.

Top-quality health care facilities and outstanding physicians are key attractions for businesses. A community without nearby access to specialty care is one whose prospects for economic development are greatly diminished.

This crisis demands a federal legislative solution, and we've made some progress on that front.

Last year, with the support of the Chamber and our partners in the Health Coalition on Liability and Access, the House passed Representative Greenwood's medical liability reform bill—though the Senate failed to consider it.

Under the Greenwood bill—which has the president's strong support—plaintiffs would be compensated 100% for their medical bills and lost wages, but a $250,000 cap would be placed on all non-economic damages. Additionally, patients would get more of a judgment because attorney fees would be capped.

It's simple, fair, and effective. How do we know? Because the Greenwood bill is based on the successful California medical liability law passed more than 25 years ago.

Today, Californians have better access to health services, and businesses and workers in that state save $100 billion a year because of reduced liability.

Injured patients in California now receive higher levels of compensation than before the California law was passed—and more quickly, I might add.

Since its enactment, medical liability insurance premiums across the nation have increased three times faster than in California.

In a few minutes, we're going to hear from the key players who will be driving the Greenwood and companion bills through Congress.

But first, it's my privilege to introduce someone who has been instrumental in framing the medical liability debate.

John Thomas is co-founder and chairman of the Coalition for Affordable and Reliable Healthcare. He's also senior vice president and general counsel for Baylor Health Care System in Dallas.

John has spent his career at the intersection of medicine and law. Prior to his current job at Baylor, John served as general counsel and secretary for Unity Health System, the St. Louis division of Sisters of Mercy Health System.

Before that, he was a partner at a law firm in Kansas City.

John is a respected publisher, author, and speaker on corporate and health law. We're very pleased to have him here today. Please welcome John Thomas.