|
Texas stands as a shining example of the benefits inherent in effective tort reform.
Prior to the state’s sweeping 2003 medical liability reforms, Texas ranked 49th
out of 50 states in doctor-per-citizen ratio. Of the state’s 254 counties, more
than 150 had no obstetricians and more than 120 had no pediatricians. At the time,
the rate of medical malpractice claims in the Rio Grande Valley alone was 211 percent
above the national average. Thirteen of the 17 physician liability insurance providers
that had been writing in Texas exited the state and many doctors felt forced to
retire or move their practice.
Armed with these statistics, Gov. Rick Perry declared medical malpractice a statewide
crisis and urged legislators to enact meaningful tort reforms in order to lower
skyrocketing professional liability premiums, attract doctors to under-served regions
of the state and improve Texans’ access to healthcare.
The then-newly-elected Republican majority in the state legislature answered the
call by passing
House Bill 4 (HB4), which addressed issues such as limits on non-economic
damages, punitive damages as well as joint and several medical liability (joint and
several liability, sometimes called the "deep pocket" rule, makes each and
every defendant in a tort lawsuit liable for the entire amount of the plaintiff's
damages regardless of the defendants' relative degrees of fault or responsibility).
The reforms included a cap on non-economic damages in medical malpractice cases,
limits on how long after an incident a lawsuit can be filed and tightening up requirements
for "expert" testimony. Doctors who volunteer their time were afforded more protections,
and class action rules were tightened. The Wall Street Journal called the
changes adopted in HB4 “Ten Gallon Tort Reform.”
Texas malpractice premiums have decreased more than 20 percent
While HB4 has been referred to as a model bill by numerous commentators because
it addressed so many changes necessary to extinguish the litigation crisis, what
separates Texas’ tort climate from many other states with reform legislation is
that voters approved a constitutional amendment,
Proposition 12, which eliminates potential court challenges to the law that
capped non-economic damages. Since the enactment of HB4 and the subsequent passage
of Proposition 12, malpractice premiums have decreased more than 20 percent
and Texas has made great strides in attracting new physicians to the state.
"The facts are simply indisputable," said Gov. Perry, one year after signing the
reforms into law. "Voter-approved medical liability reforms are healing the practice
of medicine by reducing insurance costs and frivolous lawsuits, making it easier
for communities to recruit new doctors and expanding patient access to needed care."
The only drawback, if it can be called that, to the success of state’s tort reforms
has been that the influx of doctors lured to Texas by new limits on malpractice
lawsuits has overwhelmed the state board that screens candidates for medical licenses.
The Texas Medical Board recently reported that the number of physician license applications
increased by a third in fiscal 2006, to 4,026, from 2,992 in fiscal 2005 (Medical
Board Statistics, Fiscal Years 2001-2007), but that additional staffing
has helped decrease the wait for a medical license from about 100 days in 2007 to
44 days presently.
More than 30 new carriers now providing liability coverage in Texas
Following the demand created by the influx of physicians, there are now more than
30 new carriers providing coverage in Texas. This increased competition
benefits you, the physician, as more competition means rates are decreasing. Make
sure you are not overpaying and get the best rates available by submitting your
free quote.
“[Tort reform] is a victory for the people of Texas,” Gov. Perry said. “We are all
patients of the healthcare system. We all depend on qualified physicians and nurses.
[Through tort reform} Texans have taken an important step toward protecting both
the practice of medicine and Texans’ access to quality healthcare.”
|
