NU Online News Service, Sept. 18, 2:32 p.m. EDT

The Department of Health and Human Services is asking states, local authorities and health care groups to submit proposals within 30 days on programs the groups envision could reduce medical malpractice liability costs.

The department said it will spend $25 million over three years to fund pilot programs to expedite payments to injured patients, reduce insurance liability premiums, as well as improve patient safety and communication between doctors and patients.

But a tort reform group funded by the U.S. Chamber of Commerce contended that the initiative is too small and much more needs to be done to curb medical malpractice lawsuits and the defensive medicine mentality they create.

Specifically, the demonstration projects the agency wants to fund should be dealing with ways to compensate patients "in a fair and timely manner for medical injuries while also reducing the incidence of frivolous lawsuits, and reduce liability premiums," the agency said.

The agency said accepted proposals will result in grants for up to three years, for up to $3 million each.

They will be provided on a competitive basis to states and health systems for implementation and evaluation of evidence-based patient safety and medical liability demonstrations, HHS said.

But, Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, said, "While we are encouraged that the Obama administration has made medical liability reform part of their overall health care package, the $25 million state grant program announced today amounts to about 1-40,000th of one percent of the cost of a one-trillion-dollar health care bill."

Ms. Rickard contended that "studies have shown" meaningful medical malpractice reform can save from $120 billion to as much as $500 billion over a decade.

"But a small medical liability grant program will not be effective and will preserve the status quo when it comes to medical malpractice lawsuits," she added.

The grants are in response to criticism from Republicans and industry that the health care reform packages being proposed by Democrats and the Obama administration do not place any emphasis on med mal liability reforms.

In comments to the National Underwriter, however, Anthony Bonomo, chief executive officer of Physicians' Reciprocal Insurers, Roslyn, N.Y.–New York's second-largest med mal insurer–expressed a different opinion.

"We really don't know how much medical malpractice–and the fear of malpractice lawsuits–contributes to overall health care costs," he said.

He added, "The thrust of medical malpractice reforms should be to make sure anyone injured can be compensated fairly, and at the same time ensure that doctors are not overpaying."

He said, "If it is shown that the fear of medical malpractice lawsuits leads to costly, unwarranted procedures, and that reforms can limit this practice while still ensuring patient safety and quality of care, then med mal reforms should contribute to a reduction in health care costs."

Special Reports /

HHS Seeking Ways To Curb Med Mal Liability Costs

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