N.J. doctors' Payouts for Malpractice Fall,
Contradicting Claims

Wednesday, June 09, 2004

 

BY CAROL ANN CAMPBELL

Star-Ledger Staff

New Jersey doctors and insurers have long blamed rising malpractice premiums on skyrocketing payouts. But data made public this week shows the opposite: Payments made on behalf of the state's physicians have been declining since 2001.

Confidential settlements, jury awards and other payouts became public Monday after a federal judge ordered the state to release the information. It shows, for the first time, the total cost of doctors' malpractice payments to injured patients or their survivors.

The figure hit a high of more than $214 million in 2001. It declined to about $199 million in 2002 and dropped further -- to $162.5 million B in 2003. The total payout declined even as doctors saw steep increases in their malpractice premiums.

"I've said all along that rising premiums had little to do with big payouts and more to do with insurance industry practices and the economy," said Sen. Joseph Vitale (D-Woodbridge).

Uncovering exactly what the state's insurers were paying on behalf of New Jersey physicians would have been crucial to the recent medical malpractice debate that raged in Trenton, several legislators said. Lawmakers said they could examine only jury awards but not confidential settlements. Doctors have been fighting unsuccessfully to limit what juries can award plaintiffs.

"We only got jury verdicts. But everyone knows the worst cases never get to trial," said Sen. Neil Cohen (D-Union). Cohen said doctors, instead of attacking settlements and payouts, should look more critically at the insurance industry.

"There was never a single bad word about the insurance industry," he said.

The Record of Hackensack sued to make the malpractice information public and on Monday U.S. District Judge William G. Bassler agreed. He said the data could help consumers make health care decisions.

The data is collected by the state Division of Consumer Affairs.

Insurers who cover New Jersey doctors are required to send a report to the state, as well as one to a federal data bank, whenever they pay out to settle a malpractice claim or a jury verdict.

The state on Monday released the names of 2,333 physicians who have made malpractice payments since March 15, 1999. The data shows that 363 doctors made more than one payment. It also shows the scope of physician payments -- anywhere from a single $1,700 payout to $3 million-plus judgments.

"We supported this," said Bridget Devane, an organizer for New Jersey Citizen Action, a consumer group. "I think people will start to ask questions of their doctors (who have made payments). We also need to address what to do about a small percentage of doctors who are making the most mistakes."

While paying malpractice insurance is a considerable expense for all physicians, only a handful end up paying large settlements. The state data shows that 80 physicians are responsible for $178 million -- or 20 percent -- of all malpractice payments made in New Jersey in the past five years. During that same time, a little more than 10 percent of the 22,000 doctors working in New Jersey made malpractice payments.

Doctors opposed the release of the information, saying that even the best doctors are sued, particularly if they work in risky areas, such as obstetrics or surgery.

S. Manzoor Abidi, a neurologist and president of the Medical Society of New Jersey, said he has not paid any malpractice claims.

"Does that make me a better doctor? I don't think so. I am not being magnanimous. I trained with prominent and well-trained doctors who do have judgments against them," he said.

Some doctors have called the data inaccurate. Manzoor said he would examine the numbers but that he believed payouts are continuing to rise. He nonetheless supports looking more critically at insurers. "We have to fix the problem and look in every corner," he said.

Bob Schulz, a spokesman for Princeton Insurance Co., the state's largest malpractice insurer, said the company has not seen a drop in payouts.

"Individual companies may have different experiences," he said. "We have seen a continued rise in the severity of claims."

The malpractice data will be available to the public June 23 when doctor profiles, created by the state, are placed online. The profiles will include information about the doctor's schooling, training and other background, as well as whether he or she has paid any malpractice judgments.

The data released Monday showed that some doctors are sued frequently, including one physician, Bruce Cunningham, a family practitioner in Vineland, who made 28 payments, according to the state records.

The payments were relatively small, from $5,000 to $185,000. Cunningham, contacted in his office yesterday, said he was involved in a hair replacement company from 1991 to 1993 and that all the suits stem from his work for that firm, which he would not identify. "I have been an excellent family physician for 28 years," he said. "These have nothing to do with my medical practice."

His attorney, Brian DeLaurentis of New York, said Cunningham entered into the settlements believing they would always be confidential. "What do you do when the game is played and then the rules are changed?" he asked. He said Cunningham was an employee at the hair replacement company and the complaints were due to the hair replacement procedure, not Cunningham. He declined to explain the procedure.

Carol Ann Campbell covers medicine. She can be reached at (973) 392-4148.

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