Much has been made of how big jury verdicts are causing the malpractice insurance crisis. Limiting the right to trial by jury and denying access to justice is not the answer because tort suits are not the cause of the "crisis." A closer look at the data reveals that the statistics relied upon by tort reform advocates do not support their allegations of "lawsuit abuse."

The number of "claims filed" has not increased. The 4,083 "claims filed" in 2001 is the third lowest since 1992, with the number of "claims filed" continuing to decrease since 1999.

In addition, the number of actual lawsuits filed has not increased. According to the Office of Court Administration, responsible for collecting case filing information annually, the number of case filings in this category has consistently decreased from 31,050 in 1994 to 19,590 in 2001.

The cost of case payouts has also not increased. Dollar amounts paid by insurance companies have been stable for 30 years. In 2000 and 2001 there were a few extraordinary verdicts, but current caps were applied, and the actual amounts paid were a fraction of the verdicts. The amounts actually paid in most cases are unknown, because healthcare providers and their insurers require that those amounts remain confidential. In research for Americans for Insurance Reform, former Texas Insurance Commissioner Robert Hunter found that over the past 30 years the amounts paid by medical malpractice insurance companies in jury awards, settlements and defense costs directly tracked the rate of medical inflation. Hunter, who also served as Federal Insurance Administrator under Presidents Ford and Carter, found that not only has there not been "an explosion" in medical malpractice payouts during the last 30 years, payments in inflation-adjusted dollars have been extremely stable since the mid-1980's.

While medical malpractice insurance premiums have risen, data suggests that the real problem is not claims by injured patients but actual malpractice and the failure of the medical profession to supervise its members. Hospital patients die at a rate of 44,000 to 98,000 annually because of medical error, at an estimated total cost of between $17 and $29 billion in preventable deaths and injuries. (Institute of Medicine, 1999). According to the Texas Association of Business & Chamber of Commerce, the annual estimated cost attributed to medical error in Texas alone is $1.2 billion. The Dallas Morning News reported that of the 6,083 malpractice claims filed with the Texas State Board of Medical Examiners between January 2001 and May 2002, the Board failed to investigate a single case. The Morning News also reported that since 1997, not a single Texas doctor had his or her license revoked because of medical error.

The Republican Plan

At the same time Texas consumers are crying out for relief from skyrocketing insurance rates, wealthy insurance and medical industry lobbyists are pushing legislators for special protections that decrease, instead of increase, consumer rights and protections. These special interests are promoting legislation that promises niche insurance relief for irresponsible hospitals and medical providers at the expense of patient safety and access to quality healthcare.

The Republican leadership is listening to these lobbyists and have hired former industry lobbyists for their staff.

The main arguement of the GOP and their insurance lobbyist allies is that hugh lawsuit payouts are the reason for the crisis and tort reform is the answer. However according to a study by the Consumer Federation of America, medical malpractice costs, as a percentage of health care costs, are at an all time low, 0.55 percent. Report author J. Robert Hunter, former Texas Insurance Commissioner and Federal Insurance Administrator, said, "Medical malpractice insurance is amazing value, considering that it covers all medical injuries for about one-half of one percent of health system costs!"

On the other hand, total national costs (lost income, lost household production, disability and health care costs) of negligence in hospitals are already estimated to be between $17 billion and $29 billion each year. The GOP talk of reform, but their policies mean one thing: fewer rights for you!

An Alternative Path

Texas Watch, a bi-partisan consumer rights organization, has a series of reforms to better protect Texas patients by providing Texans the information they need about their doctors, giving the Board the resources it needs to effectively protect Texas patients and enhancing Board oversight to ensure it is meeting its mission to serve the citizens of Texas.

Strengthen State Board of Medical Examiners

* Increase proportion of community members serving on Board; mandate that one of them be a patient representative.
* Create a Patient Advocate position (similar to OPIC) within BME.
* Increase type and detail of public information available about Board investigations, disciplinary orders and other actions.
* Ensure the BME has the resources and direction to properly investigate patient complaints and impose sanctions/penalties against doctor misconduct.
* Improve complaint process by standardizing complaint process for all health professions and provide feedback to complainants about claim progress and action.

Open Information for Texas Patients

* Eliminate shroud of secrecy over State Board of Medical Examiners activities
* Improve access to information about doctors concerning settlements, awards, verdicts and disciplinary actions.
* All records in cases resulting in disciplinary action against a physician-including suspension, reprimand, fines, probation and license suspension should be published on State Board of Medical Examiners web site.

Insurance Company Accountability

* Bring TMLT under state oversight to regulate rates, ensure financial viability and monitor claims handling procedures.
* Ensure 100% rate regulation of medical malpractice liability insurance companies.
* Increase use of experience ratings for medical liability insurance.
* Improve standardized collection and analysis of medical liability insurance data.

Legal Reforms

* Prohibit a person whose medical license has been revoked or suspended in another jurisdiction from practicing in Texas.
* Create criminal penalties for failure to disclose prior disciplinary action.
* Provide whistle-blower protection for doctors, nurses and other caregivers.
* Prohibit secret settlements.

Get Your Voice Heard

Contact your legislator about this issue

Talking Points for Medicial Malpractice Reform

Find out more about medical malpractice reform