Payment Plan, Hospital Buyouts Affect Med-Mal Area

by Luke Jones  on Monday, Oct. 22, 2012 12:00 am  

Crises

In addition to the current issues, doctors well-versed in medical liability history will often refer to a "crisis," which could refer to a couple of different events.

In the 1970s, the first crisis occurred when med-mal claims exploded in "frequency and severity," Powell said. "Some insurance companies went out of business."

Large liability insurance companies, like State Volunteer Mutual Insurance Co. of Brentwood, Tenn., formed out of that crisis.

The more recent crisis happened in 2001 when St. Paul Cos. exited the medical liability market, leaving around 40,000 doctors nationwide without coverage. This resulted in the formation of mutual insurance firms in multiple states, or, in Arkansas' and some other states, the opening of new markets for other out-of-state carriers.

 

 

Please read our comments policy before commenting.