November 20, 2006

Rockford Register-Star
Via e-mail

To the Editor:

The November 10 editorial (“Public misinformed on malpractice caps”) was based on an inaccurate study written by trial attorneys with an obvious financial stake in maintaining the status quo: a very expensive and inefficient litigation environment to the detriment of both Illinois patients and physicians. Contrary to the study’s claims, medical liability reform—signed into law over a year ago—not only allows those injured by medical negligence to receive fair and timely justice, but also ensures continued access to medical care for all citizens.

We’re already hearing that medical liability reform is working. The AltonTelegraph reported that “a recent influx of physicians into Alton indicates that medical malpractice liability reform has had a positive impact on recruiting.” Last month, the Governor of Illinois stated that Illinois is “seeing dramatic results. New competition in the [medical liability] market is resulting in lower premium rates, and it’s making Illinois a state where doctors want to practice.”

I doubt the Governor, physicians, the public, or lawmakers from either side of the political aisle would appreciate hearing they were duped into supporting medical liability reform. Illinois patients—who were losing their physicians due to skyrocketing medical liability rates —and physicians—who were facing early retirement or having to leave the state—strongly urged their lawmakers to support reform legislation.

Your cited study incorrectly relied on medical license numbers to determine the Illinois physician population. Simply counting medical licenses overlooks numerous physicians who, thanks to excessive litigation, ceased performing high risk procedures. Also, medical license numbers often include retired physicians, medical researchers, and many physicians who maintain an Illinois license, but have been forced to practice out of state.

During the medical liability debate, lawmakers and state insurance regulators scoured volumes of ratemaking data provided by ISMIE Mutual Insurance Company. These public records showed Illinois having much higher-than-average indemnity payments when compared to other states with already enacted liability reforms. The records also confirmed that medical liability insurers’ rates do not follow the stock market. Instead, the typical liability insurer invests in high quality and fixed income securities (bonds). Investment income rarely strays from an average amount year to year.

Another myth you cited was that physicians’ premiums should be lower since 70% of lawsuits filed don’t result in payment to the plaintiff. Yet each liability case—regardless of its outcome—has to be defended. According to ISMIE Mutual, the typical 5-year cumulative cost to policyholders (and their patients) is $150 million dollars. As you can see, mounting a good defense in the Illinois courts is a very costly proposition.

Your editorial was correct in stating the number of medical liability claims in Illinois has decreased since enactment of medical liability reform. But the severity—the average amount of each indemnity payment—has increased. Once caps pass constitutional muster, it’s our hope they’ll not only reverse this alarming trend, but lead to further savings for physicians. Notwithstanding your column’s claims, experience in other states—notably California and Texas—bears this out.

Yes, it’s true that if a loss occurs due to true negligence, “no amount of money could make it up to you or your loved ones.” But we cannot afford the attorneys’ approach which is to “try to get every penny you [can].” How much is enough: $5 million, $10 million, $100 million? Even these large amounts of money will never undo the loss. If the current unfettered and out-of-control tort liability system continues to flourish, there’ll be greater losses. The public will continue to pay the high cost of unreasonably high liability awards. They’ll also not have access to medical care because their physicians will no longer deliver all the necessary services they currently provide. Or they will have left the state!

Sincerely,

William E. Kobler, M.D.
Chair, Illinois State Medical Society
Family Medicine Specialist, OSF Health System

Twenty North Michigan Avenue, Suite 700   Chicago, Illinois 60602   Web site: www.isms.org
Telephone: 312-782-1654   Toll Free: 800-782-ISMS   Fax: 312-782-2028