Opinion ID: 1969926
Heading Depth: 1
Heading Rank: 2

Heading: The Health Care Services Malpractice Act

Text: As a matter of background in this statutory interpretation case, we now turn to a discussion of the Health Care Services Malpractice Act (the Act) and the Medical Professional Liability Catastrophe Loss Fund (the Fund). The General Assembly created the Health Care Services Malpractice Act to make available professional liability insurance at a reasonable cost, and to establish a system through which a person who has sustained injury or death as a result of tort or breach of contract by a health care provider can obtain a prompt determination and adjudication of his claim and the determination of fair and reasonable compensation. Section 102 of the Health Care Services Malpractice Act, Act of October 15, 1975, as amended, 40 P.S. § 1301.102. [3] To implement these goals, the Act calls for the creation of the Medical Professional Liability Catastrophe Loss Fund. To participate in the Fund, the Act requires health care providers to purchase a minimum amount of primary professional liability insurance coverage. The parties agree that at the time the primary policies were issued in favor of the physicians and HMC, they were required to maintain $200,000.00 in primary insurance per occurrence each. 40 P.S. § 1301.701(a). The Fund pays settlements ... against a health care provider ... to the extent such health care provider's share exceeds [this $200,000.00 in] basic coverage in effect at the time of occurrence. 40 P.S. § 1301.701(d). To maintain the Fund, the General Assembly requires health care providers to pay an annual surcharge [4] on the primary insurance premium. [5] 40 P.S. § 1301.701(e). All health care providers are required to contribute to the Fund. Indeed, health care providers who fail to contribute are subject to having their licenses revoked by the licensure board. 40 P.S. § 1301.701(f).