The AMC/NOMA legislative committee has issued a memo to area hospital administrators that indicates that the
AMC/NOMA believes that while legislation establishing a rate freeze or rollback in liability premiums may appear to be a viable approach to the medical liability problem; we are concerned that those advocating for this legislation have not completely reviewed what could result if a rate freeze or rollback were to occur.
During our recent March 26th seminar, it was clearly stated that there is nothing that requires medical liability insurers to write policies in Ohio. There are only five companies writing insurance in the state, and of those five, three are showing signs of financial stress. Presenters at the seminar felt that a rate freeze would almost certainly result in these five companies leaving the Ohio market or becoming insolvent. This is not a myth, this has actually happened in other states when this type of action has occurred.
Data presented at our seminar clearly showed that Ohio law requires that insurance premiums be actuarially justified or they can be rejected by the Ohio Department of Insurance. In addition, data was presented that showed that the Ohio liability insurers have experienced dramatically decreasing profits since 1998. It is obvious that if the Ohio market were profitable for medical liability insurers, there would be more companies writing business in Ohio.
The AMC/NOMA is aware that there are alternative physician organizations that claim to have the answer to the medical liability crisis. While the AMC/NOMA is willing to work with physicians and other groups to help identify solutions to the ongoing medical liability crisis, we will not support any initiative that could jeopardize access to care or wreak havoc on the healthcare delivery system in our area. The AMC/NOMA advocates all physicians in Northern Ohio working together toward a legislative agenda that is politically and legally achievable, and one that provides all physicians with meaningful relief from the medical liability crisis.
Finally, the AMC/NOMA understands that physicians are searching for solutions and ways to express their frustration due to the medical liability crisis. The level of frustration and anger among physicians has risen to the point where some physicians are now talking about participating in a work stoppage to exert pressure on the legislature to enact legislation to resolve the professional liability insurance crisis.
The AMC/NOMA legislative committee reviewed and approved a document regarding the antitrust implications of physician work stoppages. This document may be obtained on our web site at www.amcnoma.org under the Physician Advocacy section.