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Friday, November 22, 2002

Senate OKs cap on malpractice award



By Leo Shane III
GannettColumbus Bureau

COLUMBUS - The Ohio Senate approved caps on punitive awards in medical malpractice cases Thursday, delighting medical groups who have been lobbying for the legislation for months.

The Senate bill would cap damages for "pain and suffering" in most malpractice cases to $500,000, and to $750,000 in instances with loss of a limb or permanent disability.

ABOUT AWARDS
• The Ohio Senate approved a bill Thursday to limit awards juries can give for pain and suffering to patients injured by medical malpractice. The bill would:
• Generally cap most pain-and-suffering awards at $250,000 or an amount three times higher than what an injured patient receives for medical expenses and lost earnings, to a maximum of $500,000.
• Allow higher pain-and-suffering awards in cases of medical malpractice injury that results in the loss of a limb or permanent physical disability. The bill caps those awards at $750,000 or $35,000 times the number of expected years left in the injured patient's life.
• Extend the statute of limitations for filing a medical malpractice claim from three years to four.
• Include physician assistants, emergency medical technicians, licensed practical nurses and advanced nurses among health-care professionals covered by the bill.
• Explain to the Ohio Supreme Court, which three years ago declared a similar bill unconstitutional, lawmakers' rationale for capping verdict awards. Among other things, the explanation says: "This state has a rational and legitimate state interest in stabilizing the cost of health-care delivery by limiting the amount of" pain-and-suffering awards in medical malpractice cases.
Currently there are no limits on "pain and suffering" awards. The bill does not limit compensation for actual injuries and economic losses due to medical malpractice.

The bill's sponsor, Sen. Dave Goodman, R-Bexley, said the measure offers a workable solution for a "legal system out of control."

"Every day we hear more and more from Ohio physicians considering changing their practice, retiring or moving out of the state," he said. "These are reasonable reforms that will help ensure stability in medical insurance."

The state Department of Insurance and industry officials have labeled out-of-control jury awards as the primary culprit for recent malpractice premium spikes.

Those price increases helped mobilize physician groups to lobby for reform during this year's elections. Trial lawyers and victims' advocates have argued that the economic downturn - not jury awards - is the primary force behind premium increases.

The bill passed the GOP-controlled Senate 22-9, largely along partisan lines. Democrats decried the measure as profitable to insurance companies but harmful to malpractice victims.

"This doesn't help consumers. It won't help doctors. It doesn't help victims," said Sen. Robert Hagan, D-Youngstown. "But it does help the insurance companies ... They don't want any blame whatsoever for the higher costs."

Democrats unsuccessfully offered three amendments, including one that would cap increases in malpractice insurance premiums.

"The only thing (this bill) does is address one side of the equation...when something is so unbalanced it becomes unfair," said Sen. Eric Fingerhut, D-Cleveland. "We're putting the full burden of this on the injured victims of Ohio."

The Senate bill also restricts what percentage of a jury award or settlement lawyers for plaintiffs can collect, and allows jurors to weigh a victim's other sources of compensation when reaching an award figure.

A Senate committee this week inserted a statement of intent into the bill, designed to send a message to the state Supreme Court about the need for and validity of the legislation.

A more comprehensive reform bill that included jury award caps was deemed unconstitutional by the court in 1999. But many expect that with current Lt. Gov. Maureen O'Connor joining the court next year, the court is more likely to uphold malpractice caps.

Senate President Richard Finan, R-Evendale, deflected criticism that the legislation strips away the power of the courts.

"The (Supreme Court) is becoming the Legislature, but we're just doing our job," he said.

A House bill under consideration mandates a $1 million cap in most permanent-injury cases, and implements its limit by requiring judges to strike down larger jury awards.

House sponsor Tim Grendell, R-Chesterland, said he chose that approach because it has the best chance of withstanding a constitutional challenge. But Mr. Finan called the Grendell approach more likely to be struck down and encouraged the House to quickly adopt the Senate bill.

Tim Maglione, spokesman for the Ohio State Medical Association, echoed Mr. Finan's urgency.

"Every day that passes is another day an Ohio physician is faced with the difficult decision of whether to remain in practice and continue to care for patients," he said.

A House committee is to resume debate on the issue next week. Gov. Bob Taft has said he will sign a malpractice reform bill.




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