Category Archives: New York

March 2018 Newsletter

Bad examples: New York, Pennsylvania lead national liability rates Without reform to keep medical lawsuit abuse in check, examples of the inefficiencies of our nation’s liability system are emerging in several states in the form of increasingly large payouts. According to a recent survey by Diederich Health Care, a medical liability insurance and consulting company, New York topped the list for the largest liability payouts in 2017 with a total of nearly $618 million, with Pennsylvania second at $342 million and Illinois not far behind with $301 million. What do these states have in common? None have reasonable limits on non-economic damages in place, with liability climates that have worsened in recent years due to lawmakers who are more likely to push for changes that benefit personal injury attorneys rather than patients. In New York, 30,000 members of the Medical Society of the State of New York opposed extending the state’s statute of limitations on liability claims because it would increase their already high liability costs and drive more doctors out of the state. Unfortunately, the law passed, lengthening the statute of limitations from 15 to 30 months, beginning not when the error occurred, but the date at which the…

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Legal reform advocates point to medical malpractice figures in New York, Pennsylvania

ALBANY, N.Y. (Legal Newsline) – Experts who have watched medical malpractice lawsuits skyrocket in states like New York, Rhode Island and New Jersey say lawmakers have made it too easy and attractive to sue and reform must happen. “New Yorkers once again pay more for medical liability than anywhere in America,” Tom Stebbins, executive director of Lawsuit Reform Alliance of New York told Legal Newsline. “Sadly, Albany recently made matters worse by approving legislation that expands liability and makes it easier to file lawsuits.” The “2018 Medical Malpractice Payout Analysis” released March 1 by Diederich Health Care, a medical liability insurance and consulting company based in Carbondale, Illinois, includes figures comparing medical malpractice rates among states. Among Northeast states, New York topped the list for the most malpractice cases with a total approximate $617,973,000 in payouts with Pennsylvania second at $342,093,300, and New Jersey third with $267,913,250. The lowest in the Northeast were the District of Columbia with $11,498,500, Delaware with $8,253,250 and Vermont at the bottom with $1,536,500. Among Midwestern states, Illinois was far in the lead with $300,790,050 in payouts with Michigan second at $77,072,200. The lowest Midwestern states were Wisconsin at $13,527,100, North Dakota with $3,505,000 and…

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December 2017 Newsletter

Year-end report sheds light on “Judicial Hellholes” The American Tort Reform Association (ATRA) end-of-year “Judicial Hellholes” report offers a public glimpse at the most unfriendly jurisdictions for those defending themselves against civil litigation, including medical liability lawsuits. At the top of the list this year was Florida, where once-strong medical liability reforms have been continuously rolled back at the expense of patients seeking affordable and accessible care. “This year, thanks to a state high court majority’s barely contained contempt for the policy-making authority of the legislative and executive branches of government, and a notoriously aggressive and sometimes lawless plaintiffs’ bar, Florida earns the ignominious #1 ranking among eight Judicial Hellholes…” said American Tort Reform Association president Tiger Joyce. Also high on the list was St. Louis, where “antiquated rules have made it a favorite of personal-injury lawyers shopping for big-money verdicts” resulting in $300 million in awards since 2015. However, recent changes in state government, including a governor in support of changes to the liability system, do hold promise for much-needed reform in the coming year. To read more about ATRA’s “Judicial Hellholes” executive summary and report on the where physicians and defendants fare the worst when it comes to…

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High Court’s Contempt for Lawmakers’ Authority, Lawsuit Rackets Place Florida atop Latest ‘Judicial Hellholes’ List

WASHINGTON, D.C., December 5, 2017 – The American Tort Reform Foundation issued its 2017-2018 Judicial Hellholes® report today, naming courts in Florida, California, Missouri, New York, Pennsylvania, New Jersey, Illinois and Louisiana among the nation’s “most unfair” in their handling of civil litigation. “With both this annual report and a year-round website, our Judicial Hellholes program since 2002 has been documenting troubling developments in jurisdictions where civil court judges systematically apply laws and court procedures in an unfair and unbalanced manner, generally to the disadvantage of defendants,” began American Tort Reform Association president Tiger Joyce. “This year, thanks to a state high court majority’s barely contained contempt for the policy-making authority of the legislative and executive branches of government, and a notoriously aggressive and sometimes lawless plaintiffs’ bar, Florida earns the ignominious #1 ranking among eight Judicial Hellholes, even as authorities have begun to crack down on some of the lawsuit industry’s most obviously fraudulent rackets. “Ranked #2 is perennial hellhole California, where lawmakers, prosecutors and plaintiff-friendly judges inexorably expand civil liability at the expense of businesses, jobseekers and those desperately in need of affordable housing,” Joyce explained. “The good news is the U.S. Supreme Court in June reversed a…

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June 2017 Newsletter

  Patient access to care scores a win in Washington The passage of comprehensive medical liability reform legislation this week in Washington gives patients and physicians a win on access to affordable care. H.R. 1215, the Protecting Access to Care Act of 2017, passed the House by a vote of 218 to 210, and enacts reasonable limits on non-economic damages while modeling the common-sense reforms of states like Texas and California. According to the Congressional Budget Office, the comprehensive medical liability reforms included in H.R. 1215 would lead to cost savings of $44 billion over the 2017-2026 period for federal health care programs such as Medicare and Medicaid, and reduce the national deficit by almost $50 billion over the same 10-year period. The Protect Patients Now grassroots network was activated over the past month and was instrumental in gathering support for the bill. Nearly 650 emails were sent to members of Congress, with many others taking to Facebook and Twitter to advocate for support of medical liability reform. “Our broken medical liability system is one step closer to more efficiently and equitably compensating deserving patients and reducing the medical lawsuit abuse that undermines the physician-patient relationship,” said HCLA Chair Mike…

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Trial lawyers push bill for heftier fees in malpractice cases

Trial lawyers are trying to slip in a fast one in the waning days of the legislative session in Albany that would fatten their legal fees in medical malpractice cases. Lawyers can earn 30 percent of the first $250,000 recovered in medical malpractice recoveries, dropping to 20 percent of the next $500,000, 15 percent of the following $250,000 and 10 percent of any amount over $1.25 million. A bill introduced on Sunday by Senate Deputy Majority Leader John DeFrancisco (R-Syracuse) and Assembly Judiciary Committee Chairwoman Helene Weinstein (D-Brooklyn) would allow much heftier fees. The 30 percent cut would be applied to the first $1 million recovered, 25 percent of the next $250,000 and 20 percent of any amount over $1.25 million in cases decided by the end of 2019. The contingency fees then get bumped up even higher — 30 percent of the first $1.25 million and 25 percent of any amount over that — in cases decided before Dec. 31, 2020. And after Dec. 31, 2020, lawyers could collect the contingency fee percentage allowed in all other litigation — 33 percent of recoveries. “This is a gift to the trial lawyers. The bill would directly take money from injured…

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May 2017 Newsletter

  Liability reform cited as major savings in President’s budget With an emphasis on deficit reduction, the President’s 2018 budget highlighted how medical liability reform can lead to improved fiscal health. Cited as resulting in major savings and reform, medical liability reform is noted in the President’s budget as necessary due to the fact that “the current medical liability system does not work for patients or providers, nor does it provide quality, evidence-based care,” budget language states. The liability reform proposal in the budget contains proven state reforms that have lowered costs and increased access to care in states such as California, Texas, West Virginia, and Ohio. This allows for deficit reductions of $55 billion over 10 years upon passage of a bill that contains reasonable limits on non-economic damages of $250,000 (increasing with inflation), a three-year statute of limitations, and modifications on attorney’s fees to ensure deserving patients – not personal injury lawyers – benefit from liability judgments and settlements. To review the medical liability reform proposal contained within the President’s budget, click here. Panel discussion yields insights into future of liability reform Taking part in a legal panel on the future of medical liability reform, HCLA chair Mike…

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Pre-existing Condition: New York’s Broken Liability System

The ‘Worst State for Doctors’ Has a Dangerous Pre-existing Condition Another year, and another report naming New York the “Worst State for Doctors.” Time and time again, our state ranks dead last as a place for physicians to practice. The primary reason for the Empire State’s strained relationship with the medical profession is the staggering cost of medical liability insurance. New York has the highest per capita medical liability payouts in the country. These payouts are 35 times higher, per capita, than they are in the lowest state. Nearly 20 percent of all the medical liability payouts in the U.S. are paid in New York, more than all of the medical liability payouts for the entire Midwest. These costs drive doctors out of our state and weaken New Yorkers’ access to care. Since 2003, 16 hospitals in New York City have closed. To keep their doors open, some of the state’s remaining hospitals have opted to “go naked,” and not carry any medical liability insurance at all. While it is tempting to blame the insurers for this cost crisis, many medical liability insurers are operating at a loss. The real culprit for New York’s runaway medical insurance costs is New…

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Legal reform would benefit business in New York

E.J. McMahon’s recent column in the Poughkeepsie Journal champions reform of New York’s Scaffold Law, possibly the most litigation-friendly statute in the nation (“N.Y. leaders have means to improve business climate,” May 16). His attention to the law highlights how New York’s dysfunctional civil justice system creates an enormous economic burden for the state’s small businesses, medical professionals, municipalities and nonprofits. The Scaffold Law has been pointed to as a hindrance to everything from school construction to Habitat for Humanity’s efforts following the devastation of Superstorm Sandy. Legal reforms — like updating the antiquated Scaffold Law — translate to mandate relief for all aspects of our economy. Doctors, patients and public institutions are directly impacted by New York’s litigation friendly medical policies. A recent study showed that, in 2015, New York had the highest per capita medical liability payouts in the nation, a figure higher than the payouts of the entire Midwest. This could be partially remedied by aligning New York’s standards for expert testimony with those used in other states; a simple fix that would prevent “junk science” from entering our courtrooms. Businesses and municipalities are similarly burdened by New York’s lack of “fair share liability.” Under current law,…

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Malpractice premiums flat in 2015, but changes could be ahead

Physicians paid about the same in liability insurance premiums in 2015 as in 2014, and analysts don’t see costs changing anytime soon. A nationwide survey of insurers by the Medical Liability Monitor shows that 71% of insurance premiums did not change this year, while 17% of rates rose and 12% fell. Internists experienced an average premium increase of 0.6% in 2015, while general surgeons saw a 0.2% average rate decrease, and ob.gyns experienced an average 0.5% rate increase. The static premium market is being largely driven by the low number of lawsuits filed by patients and family members in recent years, said survey coauthor Paul Greve Jr., executive vice president/senior consultant for the Willis Health Care Practice, a global risk management consultant firm. “It’s amazing to see the continuing stability in claim frequency,” Mr. Greve said in an interview. “The claims counts are just not rising. Its great for the industry, and it’s great for physicians, but it is puzzling because you wonder what has caused what amounts to a sea change in the attitudes of the general public toward malpractice litigation such that the claim counts were drop off.” Premiums continue to vary geographically. Southern Florida internists for example,…

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