Docs Quit Over Crushing Cost of Insurance

March 5, 2002 -- At the University Medical Center Trauma Unit in Las Vegas, Nev., fast work saves lives.

But this kind of care may soon be hard to find here, and elsewhere, because medical malpractice insurance is getting too expensive for doctors to pay.

"This is actually a crisis," said Dr. John Fildes, the director of the University Medical Center Trauma Unit, which is the only trauma facility in Las Vegas. Last year it treated 11,000 patients.

But two surgeons, whose premiums went from $40,000 to $200,000 in one year, are leaving the unit. The trauma unit will have to cut its services in half.

"As early as perhaps next week, we may have service interruptions for 12-hour blocks," Fildes explained. "To think that that service won't be available to people who are injured in cars or at home or on the job is really unconscionable."

Doctors say increasing malpractice claims, coupled with skyrocketing insurance rates, are making many of them question their vocation.

At the Women's Health Center in Lemoyne, Pa., one doctor has quit and another might be next. And two others may move to where the premiums are lower.

"If I can't afford to pay my mortgage, if I can't afford to send my daughter to college and my son to school and I can't pay for my cars, then what am I doing here?" said Dr. Brian Cohen, who is considering moving to another state where the rates are not as high — but he is reluctant.

Passing the Blame

Insurance companies say "don't blame us."

"The problem is created by increasing malpractice verdicts and settlements," said Larry Smarr, the president of the Physicians Insurance Association of America. "Basically it's a lottery system for the lawyers. They don't win often, but when they do, they win big and the verdict amounts continue to climb."

Attorneys say, "don't blame us," as well.

"This isn't the first time the insurance companies have cried wolf," said Leo Boyle, the president of the Association of Trial Lawyers of America.

Malpractice Awards Escalating

Attorneys say the big insurers are trying to cover losses from bad stock investments by boosting their rates.

But in some cases even that isn't enough to pay for the escalating malpractice awards. That's when insurers simply drop doctors from their rolls.

Dr. John Jacobson is a pediatric heart surgeon in Las Vegas and is one of 42,000 physicians losing coverage from one carrier who found it was paying out more in claims than it was receiving in premiums.

Other carriers offered Jacobson rates 300 percent higher than what he was paying, he said.

"This is very critical," said Jacobson. "Within 60 days we have to give notice to our patients that we may have to close our practice."