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With The Boy's Father, Former Husband Says.

1st Adventure Preschool

By JERRY LYNOTT jlynott@leader.net
 Monday, January 08, 2001 &nbsp;&nbsp;&nbsp;&nbsp;Page: 1A 





For four days last week, surgeons at a Philadelphia area hospital refused
to go into the operating room - a boycott against skyrocketing malpractice
insurance premiums. &nbsp;&nbsp;&nbsp; 
 They went back Thursday night after getting help paying their annual rates
of more than $100,000 - nearly twice as much as last year. &nbsp;&nbsp;&nbsp; Medical and insurance officials say out-of-control increases in premiums
threaten health care not only in large cities but also in Lackawanna and
Luzerne counties where rates are rising as well. &nbsp;&nbsp;&nbsp; 
 The Pennsylvania Medical Society describes it as a ``crisis'' and has
scheduled statewide forums for members later this month, including one
locally. &nbsp;&nbsp;&nbsp; 
 Last month, a Luzerne County jury returned a $10.3 million verdict for the
parents of infant who suffered severe brain damage during delivery and died
eight months later. In July 1999, a couple was awarded $6.7 million in a
medical malpractice case. &nbsp;&nbsp;&nbsp; 
 ``Awards have gotten out of hand,'' said John Reed, director of the state's
Medical Professional Liability Catastrophe Loss Fund. &nbsp;&nbsp;&nbsp; 
 ``In the insurance community, Lackawanna and Luzerne counties are looked
upon like Philadelphia. The jury awards tend to be larger, more generous. That
is not reflective of other areas.'' &nbsp;&nbsp;&nbsp; 
 Last year the CAT Fund, funded in part by a surcharge on a doctor's private
insurance, paid out more than $341 million in claims statewide, compared to
nearly $301 million in 1999. In both years, Philadelphia ate up more than half
of the totals. &nbsp;&nbsp;&nbsp; 
 On the private side, paid losses went up 31 percent in 1999, Reed added.
When an insurance carrier pays out $1.38 for every premium dollar collected,
it's a struggle to make ends meet. &nbsp;&nbsp;&nbsp; 
 That's what happened in 1999 to PMSLIC, the Pennsylvania Medical Society
Liability Insurance Co. based in Harrisburg. Last year's figures were not
available. &nbsp;&nbsp;&nbsp; 
 Partly in reaction to the awards, PMSLIC this year increased rates 10
percent overall, according to Ron Bachman of PMSLIC. An increase in the
minimum amount of coverage doctors are required to carry also contributed to
the hike. &nbsp;&nbsp;&nbsp; 
 PMSLIC clients did not see an across-the-board hike, Bachman said. Rates
for specialists vary county by county and territory by territory. The company
bumped up Lackawanna County into a Category 2 Territory. In comparison
Philadelphia is a Category 1, the highest rating, and Luzerne County a 4. &nbsp;&nbsp;&nbsp; 
 As an example of the rate differences, Bachman said PMSLIC quotes a premium
of $45,000 for an obstetrician/gynecologist in Lackawanna County. In Luzerne
County, the quote drops to $31,000. But within a county, rates will vary based
on a number of criteria including years of experience and whether any claims
have been filed against the doctor. &nbsp;&nbsp;&nbsp; 
 On top of those PMSLIC premiums is tacked the CAT Fund surcharge. In
Lackawanna County, the ob/gyn must contribute another $29,500, in Luzerne
another $19,003. &nbsp;&nbsp;&nbsp; 
 Last June, PHICO Group of Mechanicsburg, another top primary coverage
carrier, notified the state of an increase in rates for physicians and
surgeons, said Ron Chronister, vice president of Industry and Regulatory
Affairs. &nbsp;&nbsp;&nbsp; 
 ``Not every case that goes to trial results in a very large award,''
Chronister said. But the trend of large awards occurring more frequently
impacts directly on premiums, driving them up, he said. &nbsp;&nbsp;&nbsp; 
 ``What people don't realize is many physicians are small business people,''
said Allan Hetkowski, executive director of the Lackawanna County Medical
Society. In addition to insurance costs, they have staffs to pay, utility
bills, taxes and other expenses, he said. &nbsp;&nbsp;&nbsp; 
 With the changes in the health care industry - for instance the growth of
managed care - doctors ``do not have any place to pass on'' the rising
insurance costs, said Roger F. Mecum, executive vice president of the
Pennsylvania Medical Society. &nbsp;&nbsp;&nbsp; 
 ``We have a very serious affordability problem, a problem that will impact
on patients,'' Mecum said. Cutbacks in services and doctors quitting their
jobs are possible results. Attracting young doctors to the state is becoming
harder because of the insurance climate, he added. &nbsp;&nbsp;&nbsp; 
 Reforming the civil justice system from which the awards originate is
needed. Injured people can be compensated without bankrupting the insurance
system, said Mecum and others. &nbsp;&nbsp;&nbsp; 
 But getting reform will take time and money because lawyers like the status
quo, Bachman said. &nbsp;&nbsp;&nbsp; 
 Attorney P. Timothy Kelly of Scranton proved Bachman right. ``I don't think
it's needed,'' he said. &nbsp;&nbsp;&nbsp; 
 The legal system has developed over 200 years and 30 to 40 years ago many
of the causes of action presently being heard in the courts did not exist or
were extremely limited. &nbsp;&nbsp;&nbsp; 
 The public's perception of medical malpractice awards is skewed by media
reports of the multi-million dollar verdicts for the plaintiffs. The reality
is a vast majority of the cases are for the defense and is more
``representative of the day-to-day workings of the system,'' Kelly said. &nbsp;&nbsp;&nbsp; 
 Jerry Lynott, a Times Leader staff writer, may be reached at 829-7237. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp;

Malpractice Insurance Rates Rise In A Reaction To Climbing Jury Awards, Many Companies Are Raising Doctors' Premiums.