NPR Examines Increases in Malpractice Insurance for Nevada Doctors

NPR's "All Things Considered" on April 3 reported on the "extraordinary" increases in medical malpractice insurance costs in Nevada, which are leading some physicians to stop practicing and others to leave the state. The increases are also causing hospitals to "worr[y] that they may no longer be able to provide critical services such as trauma care." Nevada law requires a certain number of emergency physicians and specialists to be on call at all times; trauma centers that cannot comply could be shut down, and "critically injured" patients could be sent to facilities in other states. Dr. Dale Carrison, director of trauma services at Las Vegas' University Medical Center, said that the physicians who are the "most likely to be sued" and the "hardest-hit" by the increases are surgeons and other specialists who respond to emergencies. He said that with fewer such physicians in Nevada, "Some patients are going to die who wouldn't otherwise die." OB/GYNs are also seeing their premiums "rise dramatically," "All Things Considered" reports, and as a result some have stopped delivering babies -- the activity that is "most likely to incur lawsuits" (Neighmond, "All Things Considered," NPR, 4/3). Nevada Gov. Kenny Guinn (R) last month announced a plan to use state funds to provide basic malpractice insurance to physicians who have been unable to obtain affordable coverage (American Health Line, 3/14). Nevada Insurance Commissioner Alice Molasky-Arman said, "I'm hoping with the [program] we can prevent many of those who have indicated the intent to leave. I'm hoping in effect we'll be able to change their mind and get them to stay in the state."

Follow California's Lead?
California Medical Association Executive Vice President Dr. Jack Lewin said that the nationwide malpractice problem "will only get worse" unless states adopt laws similar to one California has had in place for 25 years. Lewin said that in 1975, California physicians were facing dramatic increases in medical malpractice insurance premiums. A special session of the state Legislature was called, resulting in a law that said that juries could no longer award patients any more than $250,000 for pain and suffering and set limits on the percentage lawyers could take from malpractice settlements. Lewin said it is "this law, and this law alone" that has allowed California to do "far better" than other states in controlling rising malpractice costs. "The number of suits has continued to rise over time, and the actual amounts of the damages paid has increased faster than inflation in California. So patients are treated fairly when something goes wrong, but the number of frivolous or non-meritorious lawsuits is so much lower in California," Lewin said. Legislation is expected to be introduced shortly in Congress that will propose "dramatic legal reforms" based on California's model, "All Things Considered" reports (Neighmond, "All Things Considered," NPR, 4/3). The full segment is available online. Note: You must have RealPlayer to listen to the report.