That high lonesome sound you hear ululating over the wide-open
Texas prairies isn't coyotes -- it's hungry trial lawyers, forced
to subsist on 40 percent of a litigation pie that has gotten
a little bit smaller of late.
When Texas Republicans finally took control of the Texas legislature
in 2003, tort reform was among their cardinal concerns. But legislation
was only part of the fight. Several bare-knuckled political battles,
the constitutional amendment known as Proposition 12, and five
appointments to the state supreme court have entrenched a battery
of reforms, including a cap on non-economic damages in medical-malpractice
cases and several measures designed to keep frivolous lawsuits
out of court in the first place.
The guys in the ambulances are
raising a joyful noise; the guys chasing behind are raising hell.
Tort reform will be the cornerstone of Governor Perry's legacy,
and other governors should mark what it accomplished: Legislators
had to approve emergency funds for the Texas medical board, which
was overwhelmed by applications from other states' refugee doctors.
Politicians rarely boast about bureaucratic backlogs, but Perry
is happy to note that thousands of physicians clog the pipeline
for licensure.
"I'll take that problem," he says. Texas
had seen new applications decline for years, but now they're
up 60 percent. The board has licensed nearly 11,00 physicians
in the four years since tort reform was enacted.
Regions where
specialists were difficult or impossible to find have attracted
new talent. The number of insurance companies has increased from
four to more than 30. That new competition has driven malpractice-insurance
premiums down by up to 20 percent for some doctors.
All of this
is gratifying to the legislation's author, former state representative
Joe Nixon -- himself a trial lawyer with the firm of mBeirne,
Maynard, and Parsons, as well as a senior fellow at the Texas
Public Policy Foundation.
"We had a neurosurgeon move to
Corpus Christi. He was the only one they had -- there wasn't
one there before him," he says. "He'd been there a
week when a man walked into his office with an abscess on his
spine. He was put into surgery immediately. He had an hour --
one hour -- or he would have been certainly paralyzed, probably
dead. Today, he's alive and walking. The physician who treated
him came to Corpus because of Proposition 12."
That doctor,
Mathew Alexander, told the Corpus Christi Caller-Times: "Practicing
defensive medicine is expensive and doesn't provide good care.
I know a lot of doctors are really bitter about it."
Timothy
George, a pediatric neurosurgeon, was also drawn to Texas in
part by the friendlier legal environment. He says that tort reform
makes it easier for him to recruit other physicians to hi practice.
George argues that reining in the lawyers will help lower healthcare
costs -- not only by reducing doctors' insurance premiums, but
also by taking away the pressure to order unnecessary tests and
procedures for no other reason than to head off potential liability.
"Reducing
cost puts less pressure on physicians to increase revenues to
offset malpractice, allowing doctors to spend more time focusing
on their care of patients. This reduces the leading cause of
malpractice suits, which is negligence."
Texas had flirted
with tort reform before -- legislation was passed in the 1970s,
but the Texas Supreme Court declared it unconstitutional. Proposition
12, which won voters' approval with a supermodel-slim margin,
amended the state constitution to make explicit that the legislature,
not the courts, would have the final say in medical-malpractice
matters.
In the House, Nixon combined a sundry selection of tort-reform
initiatives, dealing with everything from medical malpractice
to asbestos to the liabilities of charitable nonprofits, into
an omnibus reform package.
With the law in effect, Texas still
has no ceiling on economic damages -- compensation for the plaintiff's
quantifiable, dollars-andcents losses. Punitive damages also
are available, though they're sparingly awarded. But in medicalmalpractice
cases, non-economic damages -- "pain and suffering" or "mental
anguish" awards -- are limited to $250,000 for a single
doctor.
Up to three doctors at a healthcare facility (hospital,
nursing home, or clinic) can be sued, for a total of $750,000
in non-economic damages. And that has put a Texassized bee in
the bonnet of the trial bar, the members of which are practically
chewing their tasselloafers in rage.
West Texas plaintiffs' attorney
Charles Dunn, who swears that he has "never" -- never
-- seen a jury award that was too high, is bitterly critical
of the reforms. But he offers a backhanded compliment:"Lawyers
won't take these cases on a contingency fee when they're capped,
and that's reduced the number of cases."
Reducing the number
of cases was, after all, the point. Nixon celebrates the effect
of the cap, but he argues that states interested in emulating
Texas's success shouldlook first to another part of the legislation.
"I
think one of the best things we did is to put up a hurdle at
thebeginning of the lawsuit," he says."We've required
that, within 120 days, an expert report be filed by a doctor,
in the same or a similar field, who says that there was a breach
in the standard of care and that that breach was the proximate
cause of damages. If you don't have that report, your case is
dismissed. …I think that report has made a bigger difference
than the caps." Plaintiffs can pay doctors to write those
reports, just as they pay expert witnesses.
Other Texas attorneys
have pointed out that this legislation is only one factor in
a complex evolution: The state Supreme Court is dominated by
conservative Perry appointees.
These justices have subjected
tort claims, and medical-malpractice claims in particular, to
much closer scrutiny than had been the custom in the days of
Democratic dominance.
David Anderson, a professor of law at the
University of Texas and a critic of the med-mal caps, calls this "judicial
tort reform." In a study comparing Texas with other states,
Anderson took a single litigant -- Wal-Mart, the most-sued tort
defendant in the country -- and compared its record in Texas
to its history in other states.
"Wal-Mart wins about half
the time in the rest of the country. In Texas, during the period
we studied, they won 100 percent."
Though Anderson agrees "something
had to be done" about the system's excesses and endorses
some of the other Perry-era changes, he calls the caps on noneconomic
damages "a
disaster."
"It's just about ended medicalmalpractice
[lawsuits] in Texas," Anderson says. "Nobody can afford
to sue. You have somebody who's a paraplegic -- he gets his medical
expenses and his lost wages, but there's a hell of a lot he has
not been compensated for."
He mentions one intriguing alternative
to a fixed cap: a Britishstyle breakdown of injuries by type
and severity. A plaintiff with a lost finger would have a lower
cap than would one with a lost leg. A slight limp is one thing;
permanent paralysis is another.
The lack of compensation for
real but difficult-to-quantify damages is the most convincing
of the anti-reformers' arguments, and even Nixon is sympathetic.
"Mental
anguish, disfigurement -- these are real things," he says. "What
we weighed on the other side of the scale was not fairness --
$250,000 is an arbitrary number."
Rather, after listening
to voluminous testimony from the state's physicians, Nixon came
to the conclusion that the torrent of medical-malpractice cases
-- and the resulting spike in insurance premiums -- was reducing
Texans' access to health care.
"A doctor's income is limited
by what he can recover from insurance or Medicare. They can't
pass along losses to other patients, and they can't increase
prices because of Medicare or insurance. So a judgment against
an obstetrician in Tyler effectively gets paid by all obstetricians
in the state, because they share the risk," he says.
"Gynecologists
wouldn't do obstetrics. They said, 'We're not delivering babies
anymore, because we can't afford the insurance.' Doctors were
moving out of areas of the state. If a neurosurgeon were coming
to practice in the [Rio Grande] Valley, it would cost him $250,000
to buy malpractice insurance before he bought a stethoscope --
and the same guy would only have to pay $50,000 in San Francisco.
“So
we had no neurosurgeons in the Valley. The best they could do
was to stabilize you and put you on a plane to Houston or San
Antonio. San Antonio didn't have enough neurosurgeons to have
one on call 24 hours a day -- and it's the ninth-largest city
in the U.S. That's what we were weighing when we put in the caps.
"Emily
Lucid, an emergency physician, moved from Pittsburgh to the suburbs
of Austin. Tort reform was a less-immediate issue for her --
emergency physicians are generally employees of hospitals and
don't pay for lawsuit insurance out of pocket -- but the fear
of baseless lawsuits has been a fact of daily life even in situations
like hers.
"There's no question that tort reform made doctors
breathe a little easier," she says. "Just to know we're
not going to be hit for these massive amounts of money is good.
But it's not just money. Being sued is an issue in and of itself.
It implies you're not a good doctor. These lawsuits can consume
your life, and make it difficult to keep practicing."
Lucid
argues that the quality of care in Texas is more than ably defended
by the state's board of medical examiners.
"They're very
. . . thorough," she says with a nervous laugh. "Doctors
coming here better be prepared."
Before tort reform, Texas
had the 48th-lowest ratio of doctors to residents out of the
50 states. When that figure is next measured, Nixon says, Texas
expects to have climbed into the 30s. Not bad for four years'
work.
And where are all of those doctors coming from? New York,
Florida, Tennessee, and other states that have done nothing to
address lawsuit abuse.
The Lone Star State is greeting those
new doctors with a chorus from Lyle Lovett: "You're not
from Texas, but Texas wants you anyway!"