Med Mal News

President Barack Obama has ordered the Department of Health and Human Services to make $25 million available to groups that will study alternatives to our nation's current medical liability system. Noting that medical malpractice insurance premiums account for only a small percentage of the costs of running a medical practice, the President's memorandum to the Secretary of HHS nevertheless pointed out that many physicians report they are practicing defensive medicine in order to avoid medical liability, leading to increased medical costs for all American medical care consumers. “We should explore medical liability reform as one way to improve the quality of care and patient-safety practices and to reduce defensive medicine,” said the President. The grants are to be made available to states, localities and health care provider systems wanting to study alternatives to our current medical liability system. In accordance with a “fact sheet” issued in conjunction with the letter to the Secretary of HHS, grants of up to $3 million may be made, and one-year planning grants of up to $300,000 will also be made available. Decisions on grant awards are slated to be announced early in 2010.

The American Association for Justice (AAJ ' formerly the American Association of Trial Lawyers) on Sept. 17 issued a statement in response to the President's letter to HHS. The Association, noting that 46 states have already passed some form of tort reform measure, turned its attention to the limits these laws have placed on injured patients, stating, “It is critical that these demonstration projects preserve Americans' 7th Amendment right to a trial by jury. The details matter significantly, but any efforts to limit patients' rights are not acceptable. Promoting greater patient safety and reducing preventable medical errors are tenets doctors, attorneys, hospitals, and all Americans can support.”