Business leaders in Northeast Ohio have been exposed to a wide variety of information recently about skyrocketing medical malpractice insurance premiums. Issues related to malpractice are important for the business community to understand and act on.
If current conditions continue, Northeast Ohio will face a critical physician shortage.
What the crisis is all about
Ohio has been identified by the American Medical Association as a state facing a malpractice crisis. Northeast Ohio has been hit with greater premium increases than the rest of the state, probably because jury awards are higher here. Physicians in Northeast Ohio in particular have faced extreme increases –up to 400 percent — in the malpractice premiums they are charged.
Most of the increases occur for physicians who have never had any malpractice claims whatsoever. Unlike other small business owners, physicians are not able to pay for these increases by raising their rates because most medical reimbursement rates are set either contractually with insurers or through the government.
Unless checked, the problem will grow. A recent Ohio State Medical Association survey found that 58 percent of Ohio physicians expect to close their practices within the next three years if medical liability insurance costs continue to rise at their current rates. And these insurance premiums are expected to continue to rise by as much as 40 percent this year.
The bottom line is that these extreme increases are driving physicians out of practice in Ohio to other states where insurance rates are more favorable, such as Indiana, California and Minnesota. Dozens of physicians have already left practice in Northeast Ohio. This means that when you seek quality health care for yourself and your employees, it may not be available.
What’s being done
Many physicians, hospitals and organizations are working to take Ohio out of this crisis situation. Efforts include:
* Hospital assistance. Akron General Medical Center set up a special grant program to assist qualified physicians financially when they are faced with huge premium increases. Some smaller hospitals with less critically ill patients have been able to lower the premium limits their medical staff members must carry.
* Legislation. Tort reform limits on noneconomic damages were set by the Ohio Legislature in 2003. The limits will not affect rates, however, until a case is tested through the judiciary process. Another recently passed bill established a state underwriting association to provide coverage for physicians being declined. Pending bills would put a moratorium on premium increases and create medical review panels to screen lawsuits before they go through the judicial process.
* Hospitals. The Ohio Hospital Association has worked to support legislation that would ensure a stable medical malpractice market. They are also supporting the election of justices who would abide by legislative limits and not overthrow tort reform.
* Physicians. Several physician groups are developing or have developed a program to insure themselves through a captive insurance company. The Ohio State Medical Association has also been active on behalf of its members and has supported the legislative changes above.
What can the business community do?
This crisis is continuing and will affect people in all walks of life. To ensure that your physician will be able to remain in practice in Ohio, you and your employees can:
* Talk with your doctor about ways to help
* Send a letter to your legislators
* Call your legislators
* Write a letter to the editor of your local newspaper
* Vote for legislators and Ohio Supreme Court justices who support malpractice insurance reform
The Ohio State Medical Association web site (www.osma.org/crisis) provides excellent resources for more information on this health care crisis and how you can help. Dr. Richard J. Streck is senior vice president of medical affairs for Akron General, a position he has held since arriving at the hospital in 1997. He previously was chairman of the Department of Medicine at Good Samaritan Hospital. Reach him at (330) 344-6000.
