Nevada Law Caps Med Mal Awards
By E.E. Mazier and Caroline McDonald
NU Online News Service, Aug. 8, 3:15 p.m. EST? Nevada Gov. Kenny Guinn signed into law Wednesday a bill designed to limit jury awards and bring relief to the state's medical malpractice crisis.
The law, which takes effect Oct. 1, caps pain-and-suffering ("non-economic damages") awards at $350,000. The cap can be waived if either a jury finds gross negligence or a judge finds "clear and convincing" evidence warranting a higher award, reported the Alliance of American Insurers, of Downers Grove, Ill.
The statute also caps liability for physicians and hospital employees for the treatment of a trauma in a nonprofit or governmental hospital facility at $50,000 for civil damages. The statute defines "traumatic injury" as "any acute injury that, according to the standardized criteria for triage in the field, involves a significant risk of death or the precipitation of complications or disabilities."
Most notably for insurers, said the Alliance, under the new law, an insurer must report a claim to a patient safety board–the creation of which by medical facilities is mandated by the statute–within 30 days that it was filed or submitted to arbitration and mediation. Failure to comply could mean an administrative fine of up to $10,000.
Charles Schmidt, spokesperson for the Alliance, said the Alliance is in favor of the law, "as a first step." However, he said, "We would like to have seen it go a little farther."
Mr. Schmidt said there are exceptions to the caps in the bill "that we would have preferred there not be, but this is a great first step compared to what they had."
Mr. Schmidt added that any additional reforms have not been planned at this time, and will "probably have to wait until next year."
According to the Alliance, Mr. Guinn hopes the law will end an insurance crisis that temporarily closed the state's top trauma center.
The trauma center at University Medical Center in Las Vegas closed for 10 days in July because 58 orthopedic doctors temporarily walked out, saying they could not afford malpractice insurance. Other doctors closed their practices, the Alliance added.
Additionally, in December, The St. Paul Cos., which insured 60 percent of Nevada's doctors, said it was leaving the malpractice insurance business. Other companies left the state, citing as a major reason the cost of malpractice claims in a state with no cap on jury awards.
The new law is the result of a special legislative session called by the governor to deal with the medical malpractice crisis.
According to the Nevada Medical Association, the average jury award in malpractice cases last year was $2.7 million, the Alliance said.
Other provisions in the new law include a cap on the statute of limitations to three years after the date of injury, or two years after discovery for actions occurring on or after Oct. 1; and the requirement of special litigation training for district judges assigned medical malpractice cases.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.