November 2019 Newsletter

Iowa’s liability climate is changing – for worse The Iowa Medical Society (IMS) highlighted how the state’s medical liability climate is shifting and threatening access to care in the Fall edition of Iowa Medicine. In 2017, a series of reforms including certificate of merit and expert witness requirements were implemented to drive down the number of meritless lawsuits filed in the state. Unfortunately, at the time, reasonable limits on non-economic damages were included only as a “soft cap,” allowing the limit to be waived by a jury in certain instances. MaryGrace Elson, MD, MME, FACOG, President of IMS and an OB/GYN from Iowa City, highlights the outcome of the soft cap in the edition’s feature story, “Our Medical Liability System in Crisis.” “In the past three years, Iowa’s medical liability climate has shifted dramatically,” she notes. “… Iowa’s trial bar has begun cherry-picking cases where there is no dispute that a medical error occurred. Employing questionable tactics that play to juries’ emotions and drive up award expectations, we have seen a string of high-dollar verdicts against physicians and facilities.” Over the past two years, just five lawsuits have led to awards of $63 million in noneconomic damages, and impacted patient…

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October 2019 Newsletter

Alarming rise in premiums highlighted in Medical Liability Monitor The annual Medical Liability Monitor rate survey highlighted a rate increase, not seen in over a decade, and shed light on how the future of liability rates could begin sounding industry alarms. The 2019 Medical Liability Monitor Annual Rate Survey, for the first time since 2006, found that more than 25 percent of medical professional liability (MPL) premium rates increased, while only five percent of rates went down. The overall rate increase year over year was approximately 0.8 percent. The uptick led analysts to study whether or not the conditions exist for a repeat of the cost crisis that occurred in the mid-2000s, with annual rate increases averaging between 10 and 30 percent. Notably, rate increases for general surgery were found to be greater than the average increases. Guest editors of the survey edition, Bill Burns and Alyssa Gittleman from the Insurance Research Department of the global investment management firm Conning, did a deeper dive into the results. According to a press release issued by the Medical Liability Monitor, Gittleman and Burns “compared current market conditions to those which preceded the last hard market. They note similarities between the two in…

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August 2019 Newsletter

Liability reforms must be more than skin deep An analysis by University of Virginia (UVA) researchers on the prevalence of unnecessary medical tests highlighted the effect on health care costs and patient anxiety, leading a retired neurologist to reflect on how reforms must go beyond the superficial. The initiative followed a report by UVA researchers Andrew Parsons, a hospitalist and an assistant professor of medicine, and Joe Wiencek, a pathologist and an assistant professor of pathology, which found that diagnostic care that offered little value to patients is estimated to cost our health care system $800 billion annually. By offering technical solutions, such as a screen alert when a doctor orders a certain test and a weekly email that analyzes the amount of tests a doctor orders as compared with their peers, they seek to drive down unnecessary costs. Retired Virginia neurologist Dr. Justiniano F. Campa urged policymakers and patients to consider the root cause – a physician’s fear of being faced with a lawsuit. “I have to point out that the main reason for those tests lies in doctors’ fear of being sued, an event that can stop and destroy a hard-earned reputation and career,” Campa writes. While he…

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