Concerted efforts by Pennsylvania nursing homes to cap their medical malpractice liability are receiving a "cool" reception from legislators in Harrisburg. Nursing homes originally succeeded in having a bill passed by the House last fall, but the legislation has been "stuck" in the state Senate judiciary committee since January 2012.
The bill would limit punitive damages for injuries to a maximum of double compensatory damages in the absence of intentional staff misconduct. Additionally, the bill requires that any medical malpractice lawsuits against long-term care homes be filed in the county in which the personal injury happened, preventing people from filing in other counties with a reputation for making larger awards.
Pennsylvania physicians already have this limit and protection. Nursing home officials contend that they need these limits to protect their viability and avoid potential business bankruptcy. Skilled nursing and personal care facility operators typically agree to settle medical malpractice lawsuits in 70 to 80 percent of cases to avoid risking losing their businesses. Nursing home legal counsel maintains that the "punitive component" can dangerously increase their monetary damages should they "lose on the merits of the case."
Long-term care facilities point to a recent study that indicates Pennsylvania recorded the second highest medical malpractice payouts in the U.S. in 2011. The limits in the stalled legislation do not restrict or affect compensatory damages. However, nursing home legal counsel expressed fears that, without these punitive damage limits, a "runaway jury" alone could approve awards that sink otherwise responsible nursing homes.
Interestingly, most hospitals remain unconcerned with these issues, as "punitive damages are rarely awarded in hospital medical liability cases," according to a spokesman for the Hospital and Healthsystem Association of Pennsylvania. How do you feel about this legislation? Do you believe that nursing homes should have the same "protection" from over-zealous jury awards? Should there be a cap on maximum punitive damage awards against long-term care facilities?
Source: Pittsburgh Post-Gazette, "Nursing homes' bid for law to limit punitive damages stalls in Harrisburg," Steve Twedt, July 2, 2012