Philadelphia Trauma Centers Avoid Shutdown As Physicians Find Temporary Malpractice Insurance

Emergency rooms and trauma centers in the Philadelphia area avoided a shutdown Jan. 1 after their doctors were able to obtain malpractice insurance at the "last minute," the Philadelphia Inquirer reports. Coverage was set to expire on New Year's Day for many doctors, but more than 100 orthopedic surgeons were able to extend their policies for two months because their insurer failed to notify them that coverage would not be renewed (Goldstein, Philadelphia Inquirer, 1/1). Pennsylvania law requires doctors to carry malpractice insurance to treat patients. Had the doctors not obtained coverage, hospitals said they would not have been able to "adequately staff" trauma centers, potentially putting patients at risk. In recent months, two of the largest malpractice insurers in the state -- Phico Insurance Co. and St. Paul Fire & Marine Insurance Co. -- announced they would no longer offer coverage due to financial losses. Their withdrawal left many doctors "scrambling" to find coverage, as other insurers have been "unable or unwilling" to offer coverage (Goldstein, Philadelphia Inquirer, 12/21/01). The Inquirer reports that while some doctors obtained contract extensions, others purchased coverage from the Joint Underwriting Association, the state's malpractice insurer of last resort. JUA policies often cost two to three times as much as commercial coverage (Philadelphia Inquirer, 1/1). However, Gov. Mark Schweiker (R) has ordered that physicians participating on the JUA program be permitted to defer payments until April (Daughen, Philadelphia Daily News, 12/31/01). Even though the "immediate" danger to the emergency departments was avoided, hospitals administrators said the state would see similar problems in February and June when more doctors must renew their malpractice coverage. The administrators are lobbying Schweiker and state lawmakers to address the problem "before emergency services [a]re again endangered." Andrew Wigglesworth, president of the Delaware Valley Healthcare Council, which represents Philadelphia-area hospitals, said, "If something isn't done, I can absolutely see the day when trauma centers in Southeastern Pennsylvania, as well as a whole host of other services, will be closed because of lack of physician coverage" (Philadelphia Inquirer, 1/1).