Practicing without malpractice insurance

19 Jun
2004

Sometimes the cost of malpractice insurance becomes prohibitive. Many Doctors Practice With No Insurance

Routman’s policy last year would have cost $94,835 for $250,000 worth of coverage, even though he’s had no settlements or judgments against him in 18 years of private practice.

“It’s ridiculous to pay that kind of money,” he said. “If you had a $250,000 house and you have to pay $95,000 in windstorm insurance, you wouldn’t pay it. You’d take your chances and hope a hurricane doesn’t hit.”

In comparison, Routman’s brother, an ear, nose and throat specialist in Birmingham, Ala., has $5 million worth of coverage and pays $5,000 a year.

“That’s what insurance is supposed to be,” Routman said, coverage for “an outrageous amount of money, so that the patients who have been injured get something.”

And the trial lawyers keep saying that we do not have a crisis. BALONEY!!!!!!!

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Related posts:

  1. Why not make health insurance competitive?
  2. GAO on the cost of malpractice insurance
  3. For those who think that malpractice insurance premiums do not matter
  4. Pulling primary care out of insurance
  5. On insurance

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12 Responses to Practicing without malpractice insurance

Avatar

RGL

June 20th, 2004 at 7:35 am

Going bare may not be the best solution to ease the malpractice problem, but what is one to do when trial lawyers refuse to cooperate in finding a sensible solution? As Dr. Routman said,
it would be foolish to risk losing all your assets in a single case in a state where the medical liability crisis keeps getting worse over the years.

None of us would like to duck compensating victims of malpractice, but that’s impossible to do when the Florida legislature keeps making it hard for doctors to practice without being extorted by these high premiums, particularly for high-risk specialists, notably in South Florida.

The proposed consitutional amendment to limit lawyers’ contingency fees, sponsored by the FMA, came about after the state medical society felt that a cap of $500,000 passed by the state legislature last year would not materically reduce the problem and premiums, since there were many ways for lawyers to go around it. The trial lawyers retaliated with three amendments on their own, fearing that revising the contingency fees would cut them off from the jumbo awards that they have been used to.

To realize the gravity of the problem, only six of the more than 60 malpractice carriers
remained in business last year, and only four issuing new policies.

Florida is the first state to go this route, with polls showing so far the public is going to back up the proposed amendment. Its passage would
cause reverberations across the country.

Avatar

arf

June 20th, 2004 at 3:21 pm

The alternative could be things like the patient taking out a “maloccurrence” policy, sort of like those little insurance policies you can take out at the airport before your flight.

The Scandinavians work malpractice on a “no-fault” system, where if you suffer some type of bad outcome as a result of medical care, you get compensated along some sort of schedule. In fact, if something bad happens there, the doctors even engourage the patient to file a claim. Bad medical practice is dealt with by the medical board, as it should be.

The trial bar hates it, of course, because to create a “no-fault” system along the lines of the Scandinavians, it would turn these VERY wealthy trial lawyers (see the Cleveland Plain Dealer article cited elsewhere) into Worker’s Comp lawyers, paid on a fixed schedule.

Also, of interest, when the injured patients are compensated on a schedule now paid by the GOVERNMENT, sure as night follows day, the government sets up it’s own “tort reform” and tightens up what constitutes a compensable claim in their country.

Avatar

m

June 20th, 2004 at 4:09 pm

cost of the current system are too high seen in a variety of ways
1.premium costs..passed on to patients by way of fees and hurried manner in which doc’s need to practice in order to pay for expenses
2. estimates of 60-100 billion dollars/year of medical tests/referralls for legal defensive reasons.
3. employers and the self employed pay the costs associated with# 2.
4. doc’s changing practice patterns to minimize legal exposure. ( gyn, but no OB….radiology without mammography, more subspecialists fewer generalists, etc….)

why not form a voluntary “club” via web.
all participants docs, nurses,patients, become members…pay a small token fee…sign legally binding arbitration agreements prior to activation of membership, then offer services at costs significant reductions. self pay patients win via affordable costs, malpractice insurers charge less as arbitration agreements prevent long expensive legal entanglements and cap non-economic costs, doc’s order less tests for CYA reasons.

once this arrangement is underway, then particpants can take control of “medical mistakes” by being pro-acticve
and admitting the inevitable mistakes that must occur in any human endeavor and not only declaring mistakes but then having help…to problem solve and fix the reason why the mistake occurred in the first place. why can’t doc’s spearhead this reform?

Avatar

singlepayer lesslawsuits

June 20th, 2004 at 4:26 pm

Maybe the good Canadian doctors will come back to Canada. Sad to see that American medicine boils down to lawyers and CPT codes.

For the land of the willy nilly lawsuits and the Home of the Fearful ?

Avatar

kmh

June 20th, 2004 at 8:58 pm

arf’s describes a model that would require state and national tort reform. doubt that will occur in our lifetime.!

the model described by m seems plausible as it is voluntary. the problem with it is that it would require a nationwide marketing effort by doc’s and would need to offer at least a 25-35% savings in cost for provided services the patient to generate interest. this very well might fly with those who have HSA’s, have high deductibles for their before health insurance premiums kick in..or those 40 million or so folks who have no insurance.

I’m game.

Avatar

arf

June 21st, 2004 at 12:08 pm

>>arf’s describes a model that would require state and national tort reform. doubt that will occur in our lifetime.!

You won’t catch me betting against you.

My only point is, the REASONS why that won’t happen in our lifetime. Tell me, if I could snap my fingers and magically create a government-funded worker’s comp style no-fault system for medical errors, would you object to it? As a physician, I would not necessarily have a problem with it.

The objections would be from:

1. the trial bar (where SMALL groups of lawyers would lose financially, though there would likely be more cases to shepherd through the system, for smaller fixed fees)

2. government (which would see the system explode financially) Right now, the system is financed by physicians, who pay out on one end, but fees limited on the other. With government, they would find expenses skyrocket, find they now have to pay for it, and would start ratcheting down what really constitutes a compensable error.

In other words, tort reform.

Avatar

Bernie Simon

June 21st, 2004 at 8:55 pm

Have you seen the opinion piece in the New York Times by Bob Herbert?

And that is one of the essential points that is overlooked by the tort reform zealots: the problem when it comes to malpractice is not the amount of money the insurance companies are making (they’re doing fine) or the rates the doctors have to pay, but rather the terrible physical and emotional damage that is done to so many unsuspecting patients who fall into the hands of careless or incompetent medical personnel. What is needed is a nationwide crackdown on malpractice, not a campaign to roll back the rights of patients who are injured. This is another utterly typical example of the Bush administration going to bat for those who are economically and politically powerful against those who are economically and politically weak.

My sentiments exactly.

Avatar

m

June 21st, 2004 at 9:29 pm

That’s why I think tort reform will go NOWHERE because as many as people are for tort reform, there are as many that seem to oppose.

Thus… why not set up a new program where patients will get truly significant discounts from physicians if they join a medical care membership “club”, agreeing to legally binding arbitration
as a more practical and less wasteful system to the current system.

The main criticism I have read with arbitration agreements is that they do not hold if someone signs one in the midst of a genuine illness. Thus a agreement would have to be signed by patient and doctor probably weeks in advance of activating the “membership”.
After membership activation the patient can see any provider in the membership provider roster and can expect significant savings while receiving medical care.

this being a voluntary program would pass muster on legal grounds.

Patients who wan’t less expensive care at the risk of settling a claim with an arbitration panel can do it.
Patients who wan’t full access to current legal remedies can stay in the same mode they are.

Patients who seek care with homepaths/alternative medicine providers can do so if they choose.

Avatar

arf

June 21st, 2004 at 9:43 pm

How’s the trolling Bernie?

Catch anything?

Avatar

jb

June 24th, 2004 at 10:55 pm

One of the officers at the AMA put it like this (paraphrasing):

The day is not far off when we will have real tort reform in this country.

Unfortunately, that will be a day after a school bus crashes, and there are no doctors around to save the children.

Avatar

Veronica Packard

June 18th, 2005 at 5:02 pm

What about the doctors who abandon their patients and leave them to die in pain (Level 9-10), when they screwed up surgery (Dr.Lawrence Spetka- Toldedo Clinic in Ohio). My husband kept telling him something was wrong , I kept asking for another MRI- he said it was not necessary. If he had done the new MRI he would have been able to go in and fix the mess he made of my husbands back ,but know he thinks he does not need to listen to patients! He knew my husband was in pain just by the pain meds he prescribed but are not in his certifed records we have, but they are on the pharmacy print out. So my point is if you don’t police your own and get rid of the incompetant one who do nothing but make money the the HMO. You deserve what you get with high malpractice premiums.

Avatar

Lawrence Spetka

July 17th, 2006 at 5:02 pm

Interesting comment from Mrs. Packard. HIPPA regulations prevent me from giving the medical facts but suffice it to say the Packards filed a suit which was dropped without any discovery or ever going to trial. I just read this today(17 July 2006) and will be consulting my attorneys regarding the libelous comments. I do have the financial wherewithal to pursue this aggressively and will.

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