On Tuesday, April 5, 2005 Drs. John Bastulli, Jon Myles and Michael Delahanty presented proponent testimony on SB 88 to the members of the Senate Insurance, Commerce and Labor Committee in Columbus. The AMC/NOMA members urged enactment of the mandatory arbitration proposal as a way to control sharp increases in the cost of medical malpractice insurance.
Dr. Jonathan Myles, presented on behalf of the AMC/NOMA, and the Cleveland Clinic. Dr. Myles is also the president of the Ohio Society of Pathologists. Dr. Myles stated that the Cleveland Clinic provides liability coverage for its employed physicians. However, the malpractice coverage problem affects such a self-insured institution as well as other providers. CCF must maintain a capital fund adequate to cover its potential liabilities, with bond rating agencies setting the required level of capitalization. He explained the provisions of SB 88 in which a three-member panel, selected by both parties in a malpractice suit, would consider the evidence before a case goes to court, and render a decision in a less-expensive setting. He stated that while advocates believe most cases will not advance beyond the arbitration stage, parties that do not agree with the result still could go to trial and present evidence, including the arbitration panel's decision. Dr. Myles informed the Senate Committee that SB 88 is an innovative approach that hurts no one while removing cost from the system and helping to keep health costs down.
Dr. Michael Delahanty, presented on behalf of the AMC/NOMA and the Summit County Medical Society Dr. Delahanty indicated that the continuing insurance problem has forced many experienced physicians to leave the region or retire early. He stated that the liability crisis has also affected doctors wishing to add a new partner to their group because of the additional insurance expense for the practice, stating that it is difficult to recruit and retain physicians into the area due to the hostile liability climate in Northeastern Ohio." Dr. Delahanty said the Northeastern Ohio Universities College of Medicine has "barely half" of its students remaining in Ohio to complete their residencies. Citing his own experience, Dr. Delahanty said his five-physician practice has had only one settlement paid in 15 years, and no judgments against it. Still, its insurance company rating was no longer accepted by his hospital last year and he had to find alternative coverage. He stated that their premiums are now 50% higher for lesser coverage with an anticipated increase in premiums in the future even without any claims.
Dr. John Bastulli, vice president of legislative affairs of the Academy of Medicine of Cleveland/Northern Ohio Medical Association, informed the Senate Committee that arbitration usually can be completed faster and less formally than a traditional trial. He said a similar arbitration process was at one time used in Ohio for medical negligence cases and should be used again, with some changes. He stated that one key difference in the process outlined in SB 88 is that the arbitration would take place prior to a suit being filed,. The bill also provides that if a party objects to an arbitration panel's decision and proceeds to trial, they would have to pay the opposing party's actual costs unless the verdict was at least 10% more favorable to the rejecting party than the evaluation. He informed the committee that when the arbitration process was utilized previously for medical negligence cases in Ohio the arbitration was conducted after discovery and expert reports were produced and there was no potential penalty for appealing the arbitration award. Several of the Senators had questions regarding the legislation that were addressed by the three physicians. The AMC/NOMA will continue to keep our members informed on the status of SB 88.