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FOR IMMEDIATE RELEASE:
May 25, 2005

FOR INFORMATION CONTACT:
Laurie Peacock
312-580-6497
(cell) 312-608-3620

Agreement reached:
ISMS, ISMIE Mutual Announce Support of Medical Litigation Reform Bill


Chicago – Illinois physicians and patients today won an enormous victory, with an agreement struck by state legislative leaders, ISMS and ISMIE Mutual to advance meaningful litigation reforms through the Illinois General Assembly. State lawmakers are expected to vote on SB 475 before week’s end. Support from key downstate Democrat legislators and the Republican caucus was instrumental in forging this accord.

“Today marks a significant step toward preserving access to medical care for patients” said Craig A. Backs, M.D., ISMS president. “However, the battle is far from over. We look forward to this bill’s passage, its approval by Governor Blagojevich, and a positive ruling by the state Supreme Court. Only then will Illinois join the majority of states nationwide which have acted to preserve medical care resources and fair compensation for injured patients,” he said.

“The centerpiece of this compromise is a $500,000 cap on non-economic damage awards levied against physicians involved in malpractice litigation, and a $1 million limit for hospitals,” said Harold L. Jensen, M.D., ISMIE Mutual chairman. “ISMS and ISMIE Mutual fought hard for an even lower cap level, however it was simply unattainable given the diehard opposition of House and Senate Democrat leaders,” he continued. “Nonetheless, we believe this cap and other key reforms in the bill will lead to fewer frivolous lawsuits, and fairer, more reasonable awards for patients injured through medical negligence.”

The legislation does not impact economic damages awarded to injured patients, which are paid in full without any limit.

Other significant components of the agreed-upon bill include a greatly strengthened certificate of merit that discloses the identity of the physician reviewer; and higher standards for expert witnesses testifying in medical malpractice lawsuits, including board certification or board eligibility in the same or similar specialty as the defendant. Dr. Backs cited both reforms as key to halting the explosion in lawsuit filings.

Dr. Backs noted the compromise mandates stringent rate regulation of medical liability insurers and Internet profiles of physicians’ medical malpractice histories. “These concessions were a pre-condition for achieving medicine’s top policy priority, caps on non-economic damage awards,” he acknowledged. “We remain concerned that onerous regulatory measures will deter insurers from returning to the Illinois market. Nonetheless, we are accepting these constraints in the hope that this entire reform package will improve our litigation climate and keep doctors in Illinois,” he said.

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ISMS is a professional membership association representing over 14,000 physicians practicing in all medical specialties statewide. ISMIE Mutual Insurance Company is the largest insurer of medical liability for Illinois physicians. Since the company’s inception in 1976, it has been policyholder-owned and operated.

Dr. Backs is an internal medicine specialist from Springfield, Illinois. Dr. Jensen is an internal medicine specialist from Frankfort, Illinois.