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Published on: February 16, 2011
MSMS sees opportunity for meaningful change
1MSMS Task Force on Professional Liability.
Abstract:
The Michigan State Medical Society believes there is a real opportunity for professional liability reform in Michigan. In our view, the likelihood of such reform has increased significantly during the past several months for three major reasons. The most important factor is the election of Governor Engler, who has indicated that medical liability reform is his top health policy priority. Governor Engler appears to view liability reform as a key step toward improving access to health care, containing health care costs, and improving the quality of health care. Second, data released by Professor Robben Fleming, former Governor Blanchard's factfinder on liability, shows that Michigan hospitals and physicians pay extremely high professional liability premiums--just under $500 million annually. Finally, the recent Hutzel Hospital decision, in which the plaintiff won a judgment of $19 million, has focused tremendous media attention on the liability problem in Michigan.
Insights
Michigan
Area of Science:
- Health Policy
- Medical Law
Background:
- Michigan faces significant professional liability challenges impacting healthcare.
- High annual professional liability premiums for Michigan physicians and hospitals total nearly $500 million.
- A recent $19 million judgment in the Hutzel Hospital case highlights the severity of the liability issue.
Purpose of the Study:
- To assess the current landscape and opportunities for professional liability reform in Michigan.
- To identify key factors driving the increased likelihood of liability reform.
Main Methods:
- Analysis of the current political climate and stated priorities of key state officials.
- Review of economic data concerning professional liability insurance premiums.
- Examination of recent high-profile legal decisions and their media impact.
Main Results:
- The election of Governor Engler, prioritizing medical liability reform, is a primary catalyst.
- Governor Engler views reform as crucial for enhancing healthcare access, controlling costs, and improving quality.
- Data indicates substantial financial burdens from high liability premiums on Michigan's healthcare providers.
Conclusions:
- There is a significant opportunity for professional liability reform in Michigan.
- Multiple factors, including gubernatorial support and economic data, indicate a favorable environment for reform.
- Addressing professional liability is seen as essential for the overall improvement of healthcare in the state.
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