Apr. 04, 2002

Gov. Rick Perry Says Texas Must Address Medical Lawsuit Abuse Crisis

Goal Is to Ensure Texans Have Access to Quality, Affordable Health Care

AUSTIN - Gov. Rick Perry today laid out a series of corrective measures to fix the medical lawsuit abuse crisis that is hurting doctors and hampering Texans' access to quality, affordable health care.

"Because of skyrocketing malpractice insurance premiums, many Texas doctors are being forced to curtail - and sometimes abandon - their practices," Perry said. "That means many high-risk patients - including children, the elderly, and those with cancer and heart disease - are losing access to needed health care."

Perry attributed the malpractice insurance crisis to growing numbers of frivolous and abusive lawsuits, and escalating damage awards, settlements and legal expenses - all of which drain health care providers' financial resources and time from treating patients.

Doctors and other health care providers from across the state have recounted troubling stories of malpractice insurance rates soaring as much as 400 percent in one year, and of insurance carriers refusing to renew policies for some doctors - even those who have never had a malpractice claim filed against them.

Perry also said the health care profession must do its share in policing the profession and responding to medical errors that harm patients. The vast majority of Texas doctors are committed professionals who daily improve the lives of their patients, Perry said.

"As Governor, I am firmly committed to doing whatever it takes to end this crisis - including reining in abusive lawsuits, improving patient protections and reforming insurance regulations," Perry added.

Among the corrective measures Perry called for are:

Enact meaningful lawsuit reform for the health care profession that caps non-economic losses to plaintiffs at $250,000 and limits personal injury trial lawyers' fees to a prescribed schedule based on the size of the award. More than 20 other states have capped non-economic damages, resulting in significantly lower liability insurance rates. California, for example, limits non-economic damages to $250,000 and has the third lowest medical liability rates in the nation.
Create special courts or designate special judges to hear medical malpractice claims. These judges would have expertise in malpractice issues and would be better able to weed out frivolous lawsuits and to sanction lawyers and award litigation costs in meritless cases.
Improve the Board of Medical Examiners' ability to police the medical profession and safeguard patient care through enforcement of licensing laws and consistent disciplinary enforcement actions.
In concert with doctors and hospitals around the state, develop clear procedures for reducing medical errors, and for clear and swift disciplinary actions against the relatively few bad doctors whose actions endanger patients and damage the reputations of all health care providers.
Extend tort immunity to health care providers who treat low-income patients under contract with the state.
Provide a form of temporary, emergency malpractice insurance coverage for doctors who have been denied coverage solely for economic reasons.
Expand the Texas Department of Insurance's ability to review insurance rates to ensure they are commensurate with losses. Unjustified rate increases would be subject to reduction.

Perry said that over the past several months, he has met with doctors all across the state to discuss issues important to physicians and health care providers. Of all the topics discussed - prompt pay, medical liability, workers' compensation, managed care, taxes, physician joint negotiations - none is more crucial to ensuring Texans have access to quality, affordable health care than the issue of medical liability insurance, he said.

Perry said the medical lawsuit abuse crisis threatens to undermine the great strides Texas has made in improving health care in recent years. Since 1998, he noted, Texas has increased health and human services funding by more than $6 billion, making health care more accessible - especially for children, low-income and elderly Texans. Texas also has improved the Medicaid program by passing measures to prevent fraud, cut red tape, and improve community and nursing home care.

The Children's Health Insurance Program has been more successful than anyone imagined, helping more than 500,000 children get high quality, affordable health insurance. Texas also protected the privacy of medical records, authorized an innovative telemedicine pilot program using technology to get medical help to Texans living in border communities, and improved the way Texas purchases prescription drugs to increase efficiency and save taxpayers money.

To help hospitals and doctors get paid for the care they provide, the legislature in 1999 passed a law requiring insurance companies and HMOs to pay promptly, and the state has levied more than $40 million in fines and restitution orders to slow-paying insurers and HMOs.

Despite these successes, though, there is still work to be done, Perry added.

Although most of the corrective measures require legislative approval next session, Perry said there are some steps that could be taken immediately to help doctors and their patients.

He said he will request the Texas Supreme Court to act on complaints that some personal injury trial lawyers have abused court procedures and used pre-suit depositions to "set up" defendants, obtaining evidence against defendant health care providers without giving them the opportunity to be present and defend themselves.

The Governor said he is also asking the State Bar of Texas to amend its disciplinary rules of professional conduct to crack down on predatory lawyers who seek out and represent frivolous cases.

Perry said the judicial branch of government should have the first opportunity to address these problems, but if they persist, "They are a proper subject of legislation next session."