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Government Affairs Home > Washington Highlights > February 14, 2003

Jefferson Medical College Dean Testifies on Impact of Rising Malpractice Premiums

February 14, 2003 - At a Feb. 10 field hearing of the House Energy and Commerce Subcommittee on Oversight and Investigations in Langhorne, Pennsylvania, Thomas Nasca, M.D., Dean of Jefferson Medical College at Thomas Jefferson University, provided testimony that addressed the major impact of rising malpractice premiums on the missions of medical schools and teaching hospitals. Subcommittee Chairman Rep. Jim Greenwood (R-Pa.) asked Dr. Nasca to testify at the hearing, which occurred soon after Rep. Greenwood introduced new medical liability reform legislation, the "Help Efficient Accessible, Low-Cost, Timely Health Care Act of 2003" (HEALTH Act) (H.R. 5).

Using Jefferson Medical College as an example, Dr. Nasca, who is also President of Thomas Jefferson University Physicians, warned that their education, research, and patient care missions are "in jeopardy of disruption due to the recent, unprecedented increases in cost for medical liability insurance." Nasca added that academic medicine could be "disintegrating" because rising premiums demand that academic centers divert funding and time away from education and research activities.

Dr. Nasca reported, for example, that physicians have been forced to increase their clinical work and decrease their teaching activities to generate the additional revenue needed to cover malpractice premium increases. This shift of responsibilities has negatively affected faculty morale. Dr. Nasca reported that when frustrated physicians ultimately decide to leave, it is increasingly difficult to recruit replacements because faculty practices can no longer assure a balance of clinical responsibilities and time for education and research.

Dr. Nasca also referenced preliminary data compiled by the AAMC, which indicates that medical students are increasingly concerned about problems with the malpractice liability system. The preliminary data also shows the possibility of a link between the malpractice issue and the declining number of Pennsylvania-trained residents in "high -risk" specialties who choose to ultimately practice in the state.

H. R. 5 is similar to legislation that Rep. Greenwood had sponsored, and the House had ultimately passed, in 2002. The bill would establish a statute of limitations for filing claims, cap non-economic and punitive damages, and establish joint and several liability guidelines to assure physicians pay only their "fair share" of damages. The legislation would also limit attorneys' contingency fees and prohibit "double recoveries" by plaintiffs (e.g., may not collect amounts already paid by their health plan).

Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

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