While healthcare providers in many states are experiencing rising premiums, few are going through increases quite this dramatic. Unlike states such as California, Ohio, Missouri, and Montana, which severely curtail the amount of damages a plaintiff can collect, there are no limits in place in Pennsylviania. Only New York currently pays more than Pennsylvania in malpractice awards. Philadelphia alone pays more than the entire state of California, according to data published by the National Association of Insurance Commissioners. Philadelphia juries bend over backward for malpractice plaintiffs, says Paul Siegel, MD, president of the Philadelphia County Medical Society.
Most insurance companies base their malpractice rates on the physician s territory and specialty.
As a result, the high costs of Pennsylvania torts are being passed along to hospitals, physicians with no claims against them, and even facilities in lower tort-risk portions of Pennsylvania. Large-scale malpractice premium hikes are nothing new to Pennsylvania. The same issue arose in 1996. At that time, the legislature passed a bill aimed at tort reform and Gov. Thomas Ridge signed it into law. However, the legislation was effectively struck down by the state Supreme Court.