Tuesday, November 19, 2013

Physicians Meet in Colorado to Discuss Changes to Medical Malpractice Compensation

Earlier this month, the American Academy of Family Physicians (AAFP) held its 2013 State Legislative Conference in Broomfield, Colorado, just outside of Denver. A highlight of the conference was the introduction of a new medical malpractice model currently being floated in the Georgia legislature, which would place all medical malpractice claims into a system similar to workers' compensation, where injured patients would be prohibited from suing their doctor the same way injured workers are prohibited from suing their employer.

Instead of initiating a lawsuit against a negligent or incompetent doctor, an injured patient under the proposed Georgia approach would instead submit a claim to a newly-created state patient compensation system. The medical negligence claim would first go to the system's medical review department which would determine whether a medical injury occurred. If so, then the claim would be turned over to the compensation department, which would make awards according to a compensation schedule based on the type and severity of the injury. Patients who disagree with the outcome could have the decision reviewed by an administrative law judge.

Total compensation under the system would be limited to the total costs of malpractice premiums paid for the year, with 80% allocated to pay claims and the other 20% going to pay the costs of staffing the new bureaucracy and operating the new system.

The model was presented to the AAFP conference by Georgia state senator Brandon Beach and Wayne Oliver, the executive director of Patients for Fair Compensation, which is a 501(c)(4) tax-exempt "social welfare organization." 501(c)(4) entities are allowed to be politically active so long as they spend less than 50% of their revenue on political activity. This group, headed by doctors and representatives of hospitals and other healthcare companies, seeks to eliminate defensive medicine by replacing litigation with an administrative process like the Georgia model.


AAFP is a nationwide advocacy organization of family physicians that lobbies government at the state and national levels on behalf of its members.