November 27, 2001

 

The Honorable Robert Taft

Governor

State of Ohio

Statehouse

Columbus, OH 43215

 

Dear Governor Taft:

 

The Academy of Medicine of Cleveland/Northern Ohio Medical Association (AMC/NOMA) which represents 2,700 physicians in Northeastern Ohio has been notified that effective October 1, 2001; Clarendon National Insurance Company, a major carrier in this area is no longer renewing any existing policies, nor are they writing any new business in Ohio.  In addition, two other major carriers in Ohio have stopped accepting new business during the last quarter of 2001.  PHICO was recently taken over by the Pennsylvania Commissioner of Insurance, and another carrier, Frontier, recently declared bankruptcy.  The trend in malpractice exposure in Ohio is growing worse at an alarming pace.

 

As you know, physicians have to carry malpractice coverage if they want to practice medicine in the state of Ohio.  All of the hospitals in Northeastern Ohio where the AMC/NOMA physician members practice require physicians to carry professional liability insurance in order to become credentialed. 

 

This year alone virtually every insurer has increased their pricing dramatically, typically 25 to 50%.  However, with the events of September 11, 2001, these rates will probably escalate even further.  This is due in part because of the fact that insurance re-insurers will sustain substantial losses caused by the events in September.  The impact of these losses will affect malpractice insurance carriers even more.  Physicians in Northeastern Ohio are ceasing to practice medicine because the cost of coverage is already too high. 

 

Physicians in Northeastern Ohio believe that a malpractice crisis is upon us.  The malpractice problem in Northeastern Ohio is a harbinger of things to come.  Without legislative relief or intervention, the AMC/NOMA believes that the situation will only become worse and permeate throughout Ohio.

 

Several of the contiguous states are already working to address an impending medical malpractice crisis.  The AMC/NOMA leadership would like to have the opportunity to work with you and the legislators in Ohio to look for a solution to this matter as soon as possible. 

 

I would like to thank you in advance for your assistance in this matter.  Again, the AMC/NOMA and the physicians and our patients in Northeastern Ohio would appreciate your help. 

 

Sincerely,

 

 

Ronald A. Savrin, M.D.                                                    Kevin T. Geraci, M.D.

President                                                                                  President-Elect

 

Cc:  Members of the Ohio House of Representatives

       Members of the Ohio Senate

       John A. Bastulli, M.D., - Chairman, AMC/NOMA Legislative Committee