Wednesday, December 17 2008
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Medical Malpractice
Hospitals, docs sue state over malpractice fund
Gallagher Healtcare
Publication Date: 12/12/2008
Source: The Times-Tribune (Scranton, Pa.)

Dec. 12--HARRISBURG -- Statewide associations representing hospitals and doctors sought court orders Thursday to force the Rendell administration to transfer tax money to a state program that subsidizes malpractice costs for doctors.

The Hospital and Healthsystem Association of Pennsylvania and Pennsylvania Medical Society want a Commonwealth Court order directing state cigarette tax revenue be transferred to the Mcare abatement fund, which provides credits to doctors to reduce their malpractice insurance premiums.

The two groups filed petitions Thursday stating the Rendell administration violated state law by not transferring dedicated funds to pay for the abatements. The inaction is jeopardizing patient access to health care in Pennsylvania because fewer physicians are providing care, the hospitals' petition said.

"We are already seeing a crisis in accessing obstetrical care in communities and the strain that a lack of primary care physicians has on hospital emergency departments," said HAP President Carolyn Scanlan in a statement.

"It's disappointing we have no choice but to move forward with legal action to help Pennsylvania's patients," said Daniel Glunk, M.D., the medical society president.

The petitions seek to move to the judicial branch a dispute between the Rendell administration and Republican-controlled Senate over health care issues.

Since the Mcare program expired in April, doctors have paid the portion of their monthly malpractice insurance premium that was state-subsidized. The Democratic-controlled House passed legislation about this same time to expand the state-subsidized health care program for thousands of uninsured adults.

The Senate balked at the legislation, citing cost issues; Gov. Ed Rendell said it would be unfair to reauthorize the doctor's Mcare abatement without expanding coverage to the uninsured. The stalemate continued as the session closed last month.

Starting in 2003, Pennsylvania increased state cigarette taxes and placed the additional revenue in a special "health care provider retention" fund. Transfers from this fund have periodically been made to the Mcare fund.

A spokesman for Mr. Rendell said revenues in the health care provider retention fund can be used for health care purposes, but aren't restricted to just the Mcare fund.

"We disagree with (their) interpretation of the law," said spokesman Chuck Ardo.

To see more of The Times-Tribune or to subscribe to the newspaper, go to http://www.thetimes-tribune.com. Copyright (c) 2008, The Times-Tribune, Scranton, Pa. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
 
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