PATIENTS’ COMPENSATION SYSTEM A P ROPOSAL T HAT W ORKS FOR G EORGIANS Presentation to: Joanna M....

PATIENTS’ COMPENSATION SYSTEMA PROPOSAL THAT WORKS FOR GEORGIANS

Presentation to:

Joanna M. Shepherd-Bailey, Ph.D.Professor, Emory University School of Law

Wayne W. OliverExecutive Director, Patients for Fair

Compensation2655 Northwinds Parkway • Alpharetta, GA 30009 • 877 248 1689 •

www.patientsforfaircompensation.org © Copyright 2013

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=sRUmq72rhB2vCM&tbnid=7nPq8f8z62gR2M:&ved=0CAUQjRw&url=http://events.cbsatlanta.com/Georgia_Legislative_Black_Caucus_Education_Symposium_Vision_20_20_Creating_Strategic_Partnerships_that_Promote/273576242.html&ei=U4PUUa-HA8m2qQHoxYGgCw&bvm=bv.48705608,d.aWM&psig=AFQjCNEdE1O4OzETc370oN9-AYtNAv1PeQ&ust=1372968130070844

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CURRENT TORT SYSTEM DOES NOT MEETS ITS GOALS

5/15/13 2655 Northwinds Parkway • Alpharetta, GA 30009 • 877 248 1689 • www.patientsforfaircompensation.org © Copyright 2013

Three main goals of medical tort system:1. Deterrence of unsafe practices;2. Compensation for injured patients; and3. Corrective justice

The current tort system is not accomplishing these goals.

If we were designing a new system, it would look nothing like what we have today.

2655 Northwinds Parkway • Alpharetta, GA 30009 • 877 248 1689 • www.patientsforfaircompensation.org © Copyright 2013

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CURRENT TORT SYSTEM BROKEN

Prevents Access to Justice• Less than 20% of injured patients receive compensation

• Less than 1% receive Jury Award

Hurdle for Patient Safety• Unable to significantly improve under a “Blame & Shame” system…

Promotes Defensive Medicine• GALLUP - 26% of overall healthcare costs

• Cost $14 billion annually to People of Georgia➔ State Savings: $6.9 billion in Medicaid & SHBP

7/8/13


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PHYSICIANS PRACTICING DEFENSIVE MEDICINE (%)

U.S. physicians are only ones personally financially liable for malpractice; and the only ones practicing defensive medicine.

Source: Pacific Research Survey June 24, 2011

U.S. Canada U.K. Sweden New Zealand0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

92%

0% 0% 0% 0%


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PATIENTS’ COMPENSATION SYSTEMHOW DOES IT WORK?

PCS

Patient Advocate

Medical Review Department

Compensation Department

Administrative Law Judge

Quality Improvement

Department

IndependentMedicalReview Panel

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2

3

4

5

6


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MORE EFFICIENT USE OF EXISTING FUNDS

3-5 years

Patient Compensation System

Current System20%

Injured Patients17.5%

Malpractice Costs

180 days 80%Malpractice

Costs

100%Injured

Patients

Source: PIAA, 2011 Report Towers Watson Study,

2011

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(in millions)

Revenue $120

Payments to Patients $24

Paid to Defense Attorneys $25

Other Expenses $25

Investment Income ($24)

Profit $70

ECONOMIC SCALE OF JUSTICE


MAG MutualAverage of 5 years ending 2012

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(in millions)

Revenue $120

Payments to Patients $24Paid to Defense Attorneys $25

Other Expenses $25


Profit $70

Patients: $12M Plaintiff Attorneys: $12M



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(in millions)

Revenue $120


Paid to Defense Attorneys $25Other Expenses $25


Profit $70


Patients: $12MPlaintiff Attorneys: $12MDefense Attorneys: $25M



10

(in millions)

Revenue $120




Profit $70

ECONOMICSCALE OF JUSTICE

Patients: $12M

Plaintiff Attorneys: $12MDefense Attorneys: $25MInsurance Carriers: $70M



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(in millions)

Revenue $120




Profit $70


Patients: $12M

Plaintiff Attorneys: $12MDefense Attorneys: $25MInsurance Carriers: $70M

PATIENTS$12 Million

10%

MedMal CarriersTrial Attorneys

$107 Million89%




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82% of Georgia physicians practice defensive medicine

74% of Georgia physicians believe that defensive medicine negatively impacts patient care

95% of Georgia physicians support PCS Proposal

96% Georgia physicians agree that a PCS solution would reduce healthcare costs

WHAT HAVE GEORGIA PHYSICIANS TOLD US?

Source: Oppenheim ResearchJanuary 12, 2012

7/8/13


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Physicians will never get sued again

No personal financial risk

Does NOT assign blame

Safe to admit mistakes

Stress of litigation

Malpractice premiums will decrease …

PHYSICIAN BENEFITS


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All complaints are reviewed

• Increases Access to Justice

Faster payment of claims – months vs. years

Eliminates stress of litigation

Reduces exposure to unnecessary tests & copays

Guaranteed award for avoidable medical injury

Increases patient safety efforts

MORE compensation to MORE patients…

PATIENT BENEFITS

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ACTUARIES :: AON and BioScience Valuation with peer review by David Frisvold (Assistant Professor, Department of Economics, Emory University) determined the following

Significant decrease in malpractice & healthcare expenses

Savings to State of Georgia

› $3.1 Billion Medicaid

› $3.8 Billion State Employee Healthcare Costs

$6.9 Billion Total Savings in First 10 years

IMPACT ON GEORGIA



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PCS is a Solution to Completely Replace, not Just Reformthe Current Tort System

• No more medical malpractice lawsuits … against doctors, hospitals, nursing homes, pharmacists, nurses, etc.

• Strong legal precedent

• Slashes defensive medicine costs

• Enhances patient safety

• More efficient use of existing funds

• At no cost to the taxpayers or the State of Georgia

SUMMARY…

PATIENTS’ COMPENSATION SYSTEM A P ROPOSAL T HAT W ORKS FOR G EORGIANS Presentation to: Joanna M....

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