[Congressional Record Volume 140, Number 83 (Monday, June 27, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          THE FEDERAL HEALTH CARE LIABILITY REFORM ACT OF 1994

                                 ______


                             HON. BOB STUMP

                               of arizona

                    in the house of representatives

                         Monday, June 27, 1994

  Mr. STUMP. Mr. Speaker, today I am introducing legislation to 
establish fundamental tort system reforms. These reforms could be 
passed immediately and provide relief for mounting health care costs, 
even if other health system reforms are never enacted.
  This legislation will: set a $250,000 cap on noneconomic and punitive 
damages; eliminate the collateral source rule that allows for double 
recovery; abolish joint and several liability, so only defendants who 
are actually at fault are liable; require periodic payment of damages 
over $50,000 as opposed to lump-sum payment; limit attorneys fees to 25 
percent of the first $100,000 and reduce the allowable percentage as 
the award increases; establish a 1 year reasonable discovery rule and 3 
year statute of limitation with special exceptions for minors; and 
require pretrial dispute resolution to encourage reasonable settlement.
  Our current medical malpractice system is not effective in 
compensating injured individuals or at improving the quality of health 
care. It is a system with powerful incentives for wasteful spending. 
Plaintiffs are allowed to sue even if the facts do not merit a lawsuit, 
and cash payments of 3 to 4 times claimants' medical bills are awarded. 
The median verdict in medical liability claims was $150,000 in 1989, 
$450,000 in 1991, and jumped to $646.487 in 1992. The General 
Accounting Office reported that over half of total health care 
liability costs are spent defending against claims that result in no 
payment. A Rand Corp. study found that 57 percent of money spent in 
health care liability litigation never reaches injured patients.
  Physicians and hospitals are forced to provide care, not for the well 
being of the patient, but to protect themselves from lawsuits. Our 
physicians are the best trained and equipped, yet they are also the 
most often sued. Claims against doctors rose from 2 per 100 in the 
1960's to 16 per 100 in the late 1980's. Physicians, fearing 
malpractice suits, are increasingly opting out of high risk 
specialities and medicine altogether. Those hurt most are disadvantaged 
pregnant women, rural communities, and senior citizens.
  Medical malpractice liability adds at least $15 billion a year to the 
cost of health care, according to a recent study by the Competitiveness 
Center of the Hudson Institute. It is driving up the cost of 
treatments, services, medical devices and pharmaceuticals, and inhibits 
research and development of new product. It is a detriment to patients, 
providers and taxpayers, and if we allow medical malpractice suits to 
continue unrestrained, medical care will continue to become more 
expensive and there will be less access to care.

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