Rising Malpractice Insurance Rates Force Obstetrics Wards, Trauma Centers, Other Facilities To Close

The New York Times on Aug. 25 examined the "soaring" cost of medical malpractice insurance and the impact on the nation's hospitals, many of which have closed obstetric wards and eliminated trauma services. Over the past two years, malpractice insurance premiums have "doubled or tripled" in many states, and many hospitals have eliminated services as a result of the "overwhelming" cost and the decrease in the number of specialists. Increased malpractice insurance costs have prompted many specialists to "limit risky procedures" or to "retire early." In addition, many specialists have moved their practices to different states with lower malpractice insurance rates, and others have become consultants. According to an American Hospital Association survey, 20% of the AHA's 5,000 member hospitals and other health care organizations had reduced services, and 6% had eliminated some wards. This summer, at least six hospitals nationwide have closed their obstetric wards, "where medical mistakes have historically led to expensive jury awards and settlements," according to the Times. "It is likely that this is going to get much worse. We're likely to see more closures of services," Carmela Coyle, senior vice president for policy at the American Hospital Association, said (Treaster, New York Times, 8/25