ABOUT WASHINGTON STATE’S MEDICAL LIABILITY CRISIS THINGS TO KNOW

The lack of affordable liability insurance is threatening the ability of many physicians to practice medicine, potentially leaving patients without access to medical care.

 American Medical Association says Washington state in “professional liability crisis”.  Crisis worsening because dramatic rise in medical liability insurance costs.  High costs are driven by escalating jury awards and high defense costs – even for frivolous lawsuits. SITUATION CRITICAL

 Doctors are limiting services such as obstetrics, trauma care and brain surgery.  Doctors are leaving the state or quitting practice altogether.  Doctors are dropping out of Medicaid and Medicare programs because of low reimbursement rates. ACCESS TO HEALTH CARE AT RISK

 45% of physicians surveyed recently said they have reduced or eliminated high-risk services (maternity, surgeries).  The number of physicians moving out of the state increased 38% from 2002 to 2003, according to WSMA.  Physicians, ERs and hospitals must find new coverage due to insurance companies leaving the market.  Difficult to recruit physicians to Washington because of the malpractice insurance crisis. ACCESS TO HEALTH CARE AT RISK

WHY SUPPORT TORT REFORM Washingtonians Concerned. A recent survey conducted by Evans / McDonough and Moore Information found that :  78% said that without limits on non- economic damages, the price of health care will increase significantly.  65% of voters feel that without limits on non- economic damages (like pain and suffering), the number of doctors in rural areas will decline dramatically.

CONCERNED ABOUT THE ECONOMY A majority of voters feel that the number of personal injury lawsuits being filed is hurting the economy, making Washington a less attractive place to do business.

EVERYONE PAYS High premiums get passed on, impacting insurance rates, co-pays and deductibles. Skyrocketing jury awards and settlements are the primary cause:  The median medical malpractice award jumped 43% in one year – from $700,000 in 1999 to $1 million in 2000 (Jury Verdicts Research, March 23, 2002).  The median jury award grew seven times the rate of inflation from (JVR, 2002).  Today the average award is about $3.5 million (JVR, 2002).  By 2002, 52% of all awards were for $1 million or more (JVR, 2002).

Comprehensive, real reform can stabilize out-of-control premiums and ensure patients (not personal injury lawyers) receive more of the awards. Our solution is based on what we know will work – a $250,000 cap on non-economic damages. COMMON SENSE SOLUTIONS  Reforms – including a cap – are proven successful in other states.  Texas recently passed reforms including a cap of $250,000 on runaway jury awards.  Since January, 2004 med mal rates have fallen 12 percent for some and held steady for others. Insurance companies who left the state are now coming back. (Wall Street Journal, December 2003).

COMMON SENSE SOLUTIONS  Returned more of the award to the injured party.  Returned the money faster to the injured party.  Kept malpractice premiums under control.  In California, which has had a cap for nearly 30 years, such reforms have:

 The Liability Reform Coalition (LRC) is actively fighting for meaningful tort reform on behalf of its 70+ members, including:  Restaurants – concerned about obesity lawsuits and employers being held liable for reference checks.  Builders – builders in Washington are no longer building condos.  Charities – concerned about placing kids in foster homes and adoptions.  Local Governments – commonly the “deep pocket” in many lawsuits. Parks and pools across the state are closing. WHO ELSE SUPPORTS TORT REFORM  Nursing Homes – concerned many will have to close because of high cost of insurance.

 We must put pressure on legislators to act. WE NEED YOUR HELP TODAY.  Contact your legislators – two representatives and senator,

 Or call WE NEED YOUR HELP  Also call House leadership and ask them to let there be a vote on this issue the includes a cap on non-economic damages. –Pat Lantz – (360) or –Lynn Kessler – (360) or –Frank Chopp – (360) or