Virginia Birth Injury Program Reduces Housing Benefits

The Virginia Birth-Related Neurological Injury Compensation Program is reducing home construction and renovation benefits for disabled children, the Richmond Times-Dispatch reports (McKelway, Richmond Times-Dispatch, 6/24). Created 14 years ago by the state Legislature, the program is privately administered and funded by fees from doctors, hospitals and insurers. The program provides a "lifetime of care" to children injured at birth, in exchange for which families agree not to bring malpractice suits against the hospitals or doctors involved in the birth. Eligibility for the program, however, is limited to children injured by "mechanical accidents" or oxygen deprivation, which can occur from an interruption of blood flow or from a "stalled delivery" (McKelway, Richmond Times-Dispatch, 6/24). But while the program has as much as $80 million in assets, its board has opted to reduce benefits because of a "sudden increase" in participants and projected deficits caused by improved life expectancy for participating children. The program will continue to provide nursing and respite care, as well as transportation help and special therapies. But for children who enrolled after January 2000, the program will no longer provide housing construction or renovation services. Though families will still be able to receive "basic medically necessary renovations," such as an enlarged bedroom and bathroom for disabled children, these benefits are available only to homeowners, meaning families in rental homes or apartments will not receive any housing benefits. Margaret Lewis, chair of the program's board, said, "We ceased housing because of the financial future forecast. We had a fiduciary responsibility to take immediate action to assure there was money to assist and take care of children already in the fund." But the Times-Dispatch reports that the board elected to "terminate the benefits" rather than use laws "designed to generate millions ... in new income." The paper explains that state laws allow the program to collect fees from all doctors, hospitals and insurers in the state, but the board opted instead only to collect "maximum fees" from doctors and hospitals who "voluntarily" join the program.

Return to Malpractice
The Times-Dispatch reports that the changes to the program "diminish" reasons for parents to join, as benefits no longer "outpace" the state's "limited malpractice awards." Damages in malpractice cases are currently capped at $1.2 million, but cases must be shifted to the birth-injury program if either side in the lawsuit requests it, which can "tie up cases for years." Lesley Zork, a Washington D.C.-based lawyer, said, "Parents of these children don't know what to do. They don't have an adequate solution" (Richmond Times-Dispatch, 6/24).