The Problem
   

In his 18 years of practice McAllen heart surgeon Norman Hetzler had never been sued. That changed a few years ago when he was hit with eight malpractice suits in rapid succession.

Seven of the eight patients who sued Dr. Hetzler did well after surgery, and all cases were either dropped or dismissed, which was hardly a consolation.

With his reputation in taters and his malpractice premiums skyrocketing, Dr. Hetzler decided it was time to leave the Rio Grande Valley. He closed his practice and moved to Pennsylvania to open a cardiac care center.

DOCTORS' PRACTICES IN PERIL
His dilemma, though more pronounced than most, was hardly unique. With malpractice lawsuits and awards on the rise statewide, many doctors suddenly found their practice in peril.

A 2001 study by the Texas Medical Association revealed that six out of every seven medical malpractice claims in Texas were being closed with no fault found on the part of the doctor, meaning many lacked merit. Nonetheless, tens of millions of dollars were being spent fighting these cases.

The burgeoning malpractice crisis coupled with slow pay by health insurers and reduced pay by Medicare and Medicaid put doctors through the financial wringer. Reportedly, more than two-thirds of Texas physicians dipped into their retirement funds, got a bank loan or took a cut in salary to keep their practice afloat.

Unbridled lawsuits turned entire regions of the state into high-risk areas to practice medicine. From the Gulf Coast to the border to North Texas, communities were having trouble attracting and retaining medical specialists. Patients were losing access to their doctor.

Data from the state medical board revealed that over two-thirds of the counties in Texas didn't have a licensed obstetrician, more than half of the counties had no pediatrician, and almost one-third of the counties had no family physicians

CATASTROPHE IN THE MAKING
The Texas medical liability system was a catastrophe in the making.

"Physicians are dramatically changing the way they practice medicine in the State of Texas and it’s affecting patient care,
said Dr. Craig Bonnen, a Houston neurosurgeon, speaking before a Texas Senate panel. “Most of the physicians where I practice medicine in Greenville are not doing nursing home work anymore. This is happening all over the state," he said

"Physicians are getting out of hospital work. This is happening all over the state. You're losing continuity of care from the office to a hospital. Physicians are less likely to take what are considered risky cases," said Dr. Bonnen. "They're referring out more, which increases the cost of medicine. Most physicians can’t afford to even buy two hundred and fifty thousand dollars worth of malpractice now."

"Many physicians are retiring early or they’re not in a position to provide charity care,” he said. Critical shortages of both doctors and nurses were being reported across the state. The state board of medical examiners found that Texas ranked well below the national average of physicians per capital. No only were doctors leaving the practice of medicine, many were opting out of certain high-risk specialties.

EMERGENCY DECLARATION
Within days of the protest marches, both the Governor and his challenger announced, if voted into office, they would make medical liability reform an emergency issue thus giving it fast-track priority status in the Legislature.

Weeks of testimony in both the Texas House and Senate led to the passage of a comprehensive medical liability reform bill in 2003. Key elements of that legislation can be found on this web site under the heading Recently Passed Med Mal Reforms.

Texas lawmakers made great strides in quelling the crisis by passing:

  • A non-economic damage cap
  • Protections for emergency care
  • Allowing periodic payments for future damages, and
  • Implementing sweeping expert witness reforms that will presumably reduce lawsuit costs
    and the number of frivolous filings.

Yet, more still needs to be done to repair the state's medical liability system. Click on Legislative Solution for a discussion of essential reforms that remain unaddressed.


 
 

ACCESS TO CARE PROBLEM
Half of the nursing homes in the state had gone bare; unable to find liability coverage. It wasn't that they didn't want coverage; they just couldn’t afford it. These homes were just one unfortunate accident away from bankruptcy.

Faced with insurance rate hikes as high as 50 percent per year, many Texas hospitals found it impossible to maintain or expand services to meet their community's needs. Likewise, many doctors began to steer clear of high-risk or life-saving procedures to minimize lawsuit concerns. Some doctors chose to quit practice altogether.

 
   
 

SUDDEN RISE IN AWARDS
Turbulence gave way to market panic in 1999 when there was a noticeable jump in large verdicts; especially those with excessive non-economic awards. In fact, in 1999, the average non-economic award in a Texas medical malpractice suit swelled to $1.3 million-- quadruple what it was a decade ago.

Dubious lawsuits continued to be a problem but the driving force behind skyrocketing malpractice premiums was the exponential rise in non-economic awards.

CARRIERS FLEE THE STATE
Between 1999 and 2002, thirteen of the state's 17 physician liability carriers went out of business, left the state or began withdrawing from the market due to mounting losses. Some 6,100 Texas physicians were left scrambling to find liability coverage.

The crisis reached a well-publicized boiling point in April of 2002 when doctors in five Texas cities staged a one-day protest march to the steps of their local courthouse. Nearly 1,000 doctors, nurses and patients participated in the march in Edinburg, Texas.

Clearly, damages for such subjective harm as pain and suffering, emotional distress and loss of companionship had to be reined in if doctors and patients were to get the relief they so desperately sought.