One year after Texas approves tort reform, Baptist hospitals seeing substantial benefit_90604

Posted: 9/03/04

One year after Texas approves tort reform,
Baptist hospitals seeing substantial benefit

By John Hall

Texas Baptist Communications

DALLAS–About a year after Texas capped the amount plaintiffs could seek from hospitals for pain and suffering, Texas Baptist hospital and retirement- care leaders are singing the reform's praises.

Baptist General Convention of Texas-affiliated hospitals have seen a considerable drop in the number of malpractice suits against them since the legislation passed, said Michael Waters, retiring president of Hendrick Health System in Abilene.

That pattern in Texas Baptist institutions reflects a larger trend among hospitals in the state. Texas hospitals reported 1,922 lawsuits against them Sept. 1, 2002, to Aug. 31, 2003, the Texas Hospital Association reported. That number fell to 539 lawsuits from Sept. 1, 2003 through June 30, 2004.

With the drop in lawsuits has come a drop in malpractice liability premiums. The Texas Hospital Association reports its members' premiums were down 8 percent for the fiscal year 2004 and decreased 17 percent for fiscal 2005.

Prior to the tort reform, hospitals were paying hundreds of thousands of dollars each month to protect themselves from immense lawsuits, Waters said. Hendrick was being sued once every couple months. The hospital received about 40 suits the week before the reform passed.

Legislators declared plaintiffs could seek no more than $250,000 for pain and suffering from a care facility. There is no cap on how much people can seek for actual damages.

Since tort reform, Hendrick has not been sued, Waters noted. Leaders have dropped the amount of funds allocated to legal protection and invested the rest of the money into health care and ministry.

“What really did hurt us was the lottery mentality that was in place before tort reform,” Waters said during a recent BGCT Human Welfare Coordinating Board meeting.

Wayne Merrill, president of Baptist Memorials Ministries in San Angelo, said he has seen a similar drop in lawsuits against Texas Baptist retirement-care facilities.

“I think it's great,” he said. “It cut down on insurance.”

In other business, the BGCT Human Welfare Coordinating Board approved a proposed 2005 budget of slightly more than $15.9 million, up from last year's $15.5 million.

Most of the allocations remained the same, but funds were shifted away from hospitals' education support and into their chaplaincy and charity- care allocations. This shift more accurately reflects who will use the money.

Overall, child and family care, health-care and aging-care allocations all increased slightly.

The board also elected as chairman Jerry Becknal, pastor of Cranes Mill Baptist Church in Canyon Lake. Mark Neeley, pastor of First Baptist Church in Mineola, was elected vice chairman.

Board members approved a resolution of gratitude and appreciation for Waters' 24 years of service at Hendrick.