Pennsylvania medical providers worried about the high costs of medical malpractice lawsuits due to a variety of medical errors such as a delayed diagnosis, surgical errors, medication errors, hospital negligence or birth injuries, recently lost an important battle before that state's Supreme Court. The Supreme Court of Pennsylvania recently ruled that the state did not have to transfer tax funds from a state account into Pennsylvania's M-care, the Medical Care Availability and Reduction of Error Fund, according to amednews.com.

Pennsylvania physicians, though, are not done with their legal battles. A spokesperson for the Pennsylvania Medical Society said that it would not appeal the Supreme Court to rehear this case. The medical society has a second lawsuit filed against the state. This lawsuit focuses on dollars taken from the M-care fund to help balance Pennsylvania's budget.

The M-care fund is important for Pennsylvania physicians and ultimately for injured patients as well. According to state law, doctors in the state are required to have $500,000 in primary liability coverage plus $500,000 in excess coverage above that. Doctors can acquire the first $500,000 in the private market or through the Joint Underwriting Association. They get the second $500,000 from the M-care fund.

The M-care fund debuted in 2002 as a solution to the growing costs of medical liability claims. There were concerns that physicians, seeing these growing costs, would flee the state and set up shop in other locations.

In the Pennsylvania Medical Society's second lawsuit against Pennsylvania, the association is arguing that the state improperly withdrew $100 million from the M-care fund during a state budget crisis, according to amednews.com.

It's uncertain whether the state medical society will prevail in this second case.

Source: amednews, "Pennsylvania not obligated to transfer funds to liability account, court rules," Alicia Gallegos. April 16, 2012