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For years, legislators and the Tennessee Medical Association (TMA) have fought for medical liability reform (MLR), and last month the long-debated amendment passed both the state Senate and House of Representatives. The bill is on its way to Gov. Phil Bredesen for his expected signature.

“We were really close last year,” said Russ Miller, senior vice president of TMA. “It’s amazing how a year will change things. We think this step will make a big difference.”

The bill, amended SB 2001/HB1993, will require attorneys to file a certificate of good faith in order to reduce the number of medical malpractice claims that end in no payment to the plaintiff. The TMA credits this as a critical step toward improving access to healthcare and lowering costs in Tennessee.

After the bill passed the Senate on April 24 with a 33-0 vote, new TMA president, Dr. Robert D. Kirkpatrick stated, “This legislation will improve Tennessee’s liability environment by addressing significant problems of meritless lawsuits. By cutting down on the glut of unwarranted lawsuits and the associated costs that clog our state’s legal system, we’ll see a reduction in the cost of providing patient care and help Tennessee become a more attractive state to live and work for physicians for years to come.”

State data shows more than 80 percent of medical malpractice claims filed end in no payouts to plaintiffs, yet they continually increase healthcare costs for all patients and stress Tennessee’s fragile medical delivery system. Significant changes in the state’s medical liability laws as a result of this legislation include:

• Written notice to medical providers 60 days before a medical malpractice lawsuit is filed;
• Early attorney certification that a qualified medical expert has concluded there is good cause to pursue a claim against each defendant;
• Acceleration of the process of obtaining medical records pertinent to medical malpractice cases; and
• Possible penalties for attorneys who fail to comply with the certification process.

The amendment did not include changes to the “locality rule,” a major point of contention during the 2007 session, or any provision for limits on non-economic damages long sought by reform proponents and in place in 32 other states.

“This is a crucial step on the continuing road to comprehensive reform,” said Kirkpatrick. “We understand that to achieve significant changes to law, you sometimes have to accept incremental steps leading in the right direction.”

While the bill didn’t include caps on punitive damages, sources at TMA said they expect this bill will create better options for real cases and weed out actions from rapacious out-of-state law firms that pounce on any opportunity to sue. Medical liability reform will make Tennessee an unattractive location for such predators. In addition, a reduction in liability insurance rates is anticipated statewide.

“We’re very satisfied with the manner in which the House reconsidered this piece of legislation, given the apparent demise of the bill last session,” said Dr. F. Michael Minch, chair of the TMA MLR Steering Committee, after the bill’s initial passage through the House in early April.

“We extend our gratitude to the bill sponsors, Rep. Doug Overbey and Sen. Mark Norris, for their perseverance and dedication to the patients and physicians in Tennessee, and to Rep. Rob Briley, who worked with TMA officials to craft language acceptable to all parties,” Minch added. “We firmly believe this change to our medical liability laws will help assure access to care for Tennessee patients by encouraging the great doctors we have to stay here.”

Miller added, “The legislature did a good job in waiting it out, and acted correctly on the problem of frivolous lawsuits. This is an indicator of movement in the right direction. We already have manpower issues and with no reform, it put Tennessee way behind. This (bill passage) will put us in the upper echelon of states that have tort reform.”

Sources at TMA said they expect an immediate 5 percent rate reduction from the state’s largest medical malpractice liability insurer, in response to the passed amendment, with subsequent reductions later this year and early 2009.

Editor’s note: Look to Medical News for complete and ongoing coverage of this important legislation and its impact on physicians.



May 2008

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