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The Honolulu Advertiser
Posted on: Wednesday, March 12, 2008

Medical liability cap proposal survives

By Greg Wiles
Advertiser Staff Writer

So-called medical tort reform has gained new life in the state Legislature, with the head of the House Health Committee amending a Senate bill to include provisions to cap the amount of "non-economic" damages that could be paid in malpractice lawsuits.

State Rep. Josh Green, D-6th (N. Kona, Keauhou, Kailua, Kona) said a Senate bill his committee is hearing today has been amended and that he believes there are enough votes to move the measure on for consideration by the House Judiciary Committee.

"I believe the people of Hawai'i deserve our hardest work on the healthcare crisis, and that includes trying to find a compromise on tort reform," said Green, a Big Island doctor.

"This is about Hawai'i having doctors available, especially on the Neighbor Islands."

A similar measure to one being considered today, House Bill 1992, died last month after the House Judiciary Committee didn't hold a hearing on it. The Senate Health Committee had taken testimony on a similar measure but didn't move it for other committee consideration.

Attorney groups and others have argued that limiting malpractice damages cuts into victims' rights and eliminates an incentive for medical service providers to take precautions against medical errors. Locally, attorneys have also challenged whether malpractice insurance premiums are contributing to a doctor shortage or whether insurance companies would lower premiums.

The Hawaii Medical Association has pushed for changes in medical liability law, saying high premiums are one reason why doctors are leaving the state and contributing to a shortage of Neighbor Island doctors and specialists.

"Our concern is that the problems are going to get worse, unfortunately, because they've not been addressed," said Paula Arcena, Hawaii Medical Association executive director.

The state Insurance Division also has done an actuarial report showing malpractice premiums should decline 12 percent to 18 percent here if typical medical liability changes are undertaken in Hawai'i.

"There's no question based on a number of actuarial studies and the actual results in states that have passed medical liability reform that it's brought down premiums and stabilized the malpractice insurance market," said J.P. Schmidt, state insurance commissioner.

"It's also true that those states that have passed malpractice reform have attracted doctors."

The measure being considered at an 8 a.m. hearing today, Senate Bill 2160, would apply to all Hawai'i counties but Honolulu and limit noneconomic damages to $500,000 for high-risk medical specialties and $250,000 for others. There is also a provision for catastrophic noneconomic damages for irreversible, life-altering injuries that is capped at $3 million.

There would be no limit on economic damages, which include past and future medical expenses, loss of earnings and other costs for care. Noneconomic damages are a category that covers items such as pain and suffering.

Previously this year, HB 1991 died in the House when State Rep. Tommy Waters, D-51st (Lanikai, Waimanalo), declined to hear the bill because a similar measure was heard last year and failed to pass his committee.

Green said he will keep working to get medical liability changes until the session ends and hopes Waters, an attorney, will consider the new bill if it passes out of the Health Committee.

"I hope that we'll keep working, and between Health and Judiciary we can find common ground between doctors and lawyers," said Green.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.