New York State Osteopathic Medical Society

New York State Osteopathic Medical Society

American Osteopathic Association

MEMORANDUM OF SUPPORT

S3187/A4381

and

MRT Savings Proposals that Establishes

Comprehensive Medical Liability Reform included

In the Executive Budget

March 15, 2011

The New York State Osteopathic Medical Society (NYSOMS) and the American Osteopathic Association (AOA) support the proposals to enact comprehensive medical liability reform in New York State, which have been recommended by the Medicaid Redesign Team and included in the Governor’s Executive Budget. These reforms are also included in S3187/A4381 and we applaud Senator Hannon and Assemblyman Schimminger for sponsoring this important legislation. We urge the New York State Legislature to accept these proposals and pass comprehensive liability reform this year!

The AOA proudly represents its professional family of more than 70,000 osteopathic physicians (DOs); promotes public health; encourages scientific research; serves as the primary certifying body for DOs; is the accrediting agency for osteopathic medical colleges; and has federal authority to accredit hospitals and other health care facilities. NYSOMS is a divisional (state) society of the AOA and represents the interests of the approximately 5,000 licensed osteopathic physicians in New York State—which has the sixth largest osteopathic physician population in the country.

NYSOMS and the AOA applaud Governor Cuomo for including medical liability reform in his budget. We believe that reforming the medical tort liability system is one of the most pressing issues facing our nation. The demand for health care is set to expand dramatically as a result of both an aging population and the enactment of federal health care reform that will bring millions of uninsured into our health care system. To meet this demand, we must control health care costs and we cannot control costs without reforming the prohibitively expensive but failed medical liability system.

NYSOMS and the AOA support the proposed liability reforms submitted as part of Governor Cuomo's budget amendments, which include: (1) a $250,000 cap on non-economic damages, (2) a medical indemnity fund for neurologically impaired infants, (3) disclosure of expert witnesses, and (4) certificate of merit reforms. These reforms could produce an almost 25% reduction in medical liability premiums.

Unobtainable and unaffordable medical liability insurance forces physicians to limit the services they offer their patients, relocate their practices to states with more favorable medical liability laws, or simply retire. Hospitals are forced to eliminate high-risk departments. Trauma centers are forced to close. Teaching hospitals eliminate residency programs. All of these actions, caused by the medical liability crisis, result in the same outcome: a reduction or loss of access to health care for patients. Medical students, along with interns and residents, increasingly avoid certain specialties due to the higher liability risks they pose. In addition, physicians are gravitating toward states that have reasonable professional liability laws and, subsequently,

affordable medical liability insurance rates. In fact, studies have shown that caps on noneconomic damages increase the number of physicians per capita by 2.2 percent relative to states without caps.[1]

Experts agree that the current tort system has led to an increase in health care costs. The proven reforms contained in the Governor’s budget would help reduce costs, while ensuring that patients who have been injured due to negligence receive just compensation. If enacted, these reforms would help keep physicians in New York State, where they are needed.

NYSOMS and the AOA also believe that Medicaid has become financially unsustainable. One of the causes most responsible is the cost of medical liability insurance. New York continues to face skyrocketing budget deficits. To address these deficits we must have Medicaid reform. And real Medicaid reform cannot occur without fundamental liability reform. Liability reform will reduce direct liability insurance costs. Moreover, liability reform will also reduce the very significant and well-documented costs of defensive medicine. Not surprisingly, medical liability reform was scored by the MRT to provide the greatest savings to New York State’s Medicaid program.

We look forward to working with you on this important public policy matter. Please feel free to contact us to discuss this issue further. You can reach Andrea Garcia, JD, AOA Director of State Government Affairs, at or (800) 621-1773 ext. 8185. You can reach Barbara Greenwald, NYSOMS’ Executive Director, at or (516) 686-3958.

Sincerely,

Karen J. Nichols, DO Sonia Rivera-Martinez, DO

President, AOA President, NYSOMS

[1] William E. Encinosa and Fred J. Hellinger, Have State Caps On Malpractice Awards Increased The Supply Of Physicians?, HEALTH AFFAIRS, May 31, 2005, at W5-250-W5-W258.