By Nick Smith
Gongwer News Service
Bills that would boost the caps on monetary damages in instances of medical malpractice took their first step Tuesday through a Senate panel, with divided testimony and debate over the effects it could have on both claimants and medical professionals.
“We need to have a fair legal system to adjudicate those cases and make sure that people are treated fairly and compensated fairly when they are the victims of medical malpractice,” Sen. Jeff Irwin (D-Ann Arbor) told the Senate Civil Rights, Judiciary and Public Safety Committee .
Under SB 1158 , the maximum recoverable damages for noneconomic losses stemming from medical malpractice would increase from $280,000 to $1.25 million, up from $1 million in the original bill. The bill would also increase the cap on recoverable damages for noneconomic losses in cases resulting in certain permanent injuries, from $500,000 to $2.5 million, down from $3 million as introduced.
A list of permanent injuries that would qualify for higher levels of recoverable damages would be expanded under the bill. Under the substitute, these would include if a plaintiff died or if the plaintiff suffered the loss of significant body function.
Statutory maximums for recoverable losses would not apply if extreme negligence, intentional wrongdoing, fraud or reckless disregard for a person’s rights was proven in court. The same would occur if a defendant falsified, destroyed, concealed or materially altered medical records related to the claim.
The bill was reported 5-2 along party lines.
Testifying in support was Pam Buschle of Grand Rapids. In 2013 she had an elective pelvic floor surgery and hysterectomy in which she developed sepsis and later had her hands and feet amputated. She received about $110,000 per limb under the existing law.
“I am very grateful for the healthcare providers who saved my life. At the same time, I can assure you there’s no amount of money that can replace a hand, an arm, a foot or a leg,” Buschle said.
Sen. Jim Runestad (R-White Lake) said he believed something should be done about the existing law but that it should be done next session when there is more time to weigh proposed changes rather than rushed through lame duck.
Michigan State Medical Society CEO Dr. Tom George questioned how lawmakers can reconcile claims about fairness within the system when a $120 million liability settlement in a case against Henry Ford Health was ordered in April.
“There are no caps on economic damages, and hence, Michigan is often a leader in the size of our awards,” George said.
George said one insurance provider that sells policies in multiple states estimated if the bills became law rates would rise 37 percent.
Irwin told George the bills focus on noneconomic damages while referencing Buschle’s testimony.
“Do you think $110,000 is enough compensation for the personal damage in their life?” Irwin said.
George said no amount of money would truly remedy a person’s losses.
“Society has chosen: most states have chosen to create caps to make a balance,” George said.
Gongwer News Service
Bills that would boost the caps on monetary damages in instances of medical malpractice took their first step Tuesday through a Senate panel, with divided testimony and debate over the effects it could have on both claimants and medical professionals.
“We need to have a fair legal system to adjudicate those cases and make sure that people are treated fairly and compensated fairly when they are the victims of medical malpractice,” Sen. Jeff Irwin (D-Ann Arbor) told the Senate Civil Rights, Judiciary and Public Safety Committee .
Under SB 1158 , the maximum recoverable damages for noneconomic losses stemming from medical malpractice would increase from $280,000 to $1.25 million, up from $1 million in the original bill. The bill would also increase the cap on recoverable damages for noneconomic losses in cases resulting in certain permanent injuries, from $500,000 to $2.5 million, down from $3 million as introduced.
A list of permanent injuries that would qualify for higher levels of recoverable damages would be expanded under the bill. Under the substitute, these would include if a plaintiff died or if the plaintiff suffered the loss of significant body function.
Statutory maximums for recoverable losses would not apply if extreme negligence, intentional wrongdoing, fraud or reckless disregard for a person’s rights was proven in court. The same would occur if a defendant falsified, destroyed, concealed or materially altered medical records related to the claim.
The bill was reported 5-2 along party lines.
Testifying in support was Pam Buschle of Grand Rapids. In 2013 she had an elective pelvic floor surgery and hysterectomy in which she developed sepsis and later had her hands and feet amputated. She received about $110,000 per limb under the existing law.
“I am very grateful for the healthcare providers who saved my life. At the same time, I can assure you there’s no amount of money that can replace a hand, an arm, a foot or a leg,” Buschle said.
Sen. Jim Runestad (R-White Lake) said he believed something should be done about the existing law but that it should be done next session when there is more time to weigh proposed changes rather than rushed through lame duck.
Michigan State Medical Society CEO Dr. Tom George questioned how lawmakers can reconcile claims about fairness within the system when a $120 million liability settlement in a case against Henry Ford Health was ordered in April.
“There are no caps on economic damages, and hence, Michigan is often a leader in the size of our awards,” George said.
George said one insurance provider that sells policies in multiple states estimated if the bills became law rates would rise 37 percent.
Irwin told George the bills focus on noneconomic damages while referencing Buschle’s testimony.
“Do you think $110,000 is enough compensation for the personal damage in their life?” Irwin said.
George said no amount of money would truly remedy a person’s losses.
“Society has chosen: most states have chosen to create caps to make a balance,” George said.
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