October 8th, 2009

Reports the Pittsburgh Post-Gazette:

A statewide fund to cover large medical malpractice judgments — built with yearly assessments imposed on hospitals, physicians and other health professionals — is about to get $100 million poorer.

A House Democratic spokesman this week confirmed that the money, representing two-thirds of the fund’s balance, almost certainly will be transferred to the general fund when Pennsylvania’s state budget is finalized.

“This is not an element of the budget that currently is in dispute,” said Brett Marcy, an aide to House Majority Leader Todd Eachus, D-Hazleton. “This money would be used as part of our overall strategy at plugging a $3.2 billion deficit that we face this year. If we don’t do this … we face a significant tax increase next year.”

However, professional associations representing Pennsylvania physicians, hospitals, midwives and others say the state is using them as its personal piggy bank and are threatening to sue if the money is transferred.

“We believe we have a vested property right to that money,” said Scot Chadwick, director of governmental affairs for the Pennsylvania Medical Society.

The MCare Fund has collected an annual payment from physicians and other health care workers since the mid-1970s as a hedge against large medical malpractice judgments. It was formed because physicians were having trouble finding insurers who would offer them coverage.

State law requires all doctors to obtain malpractice insurance on their own and through the Mcare insurance fund, which charges doctors a fee and then pays malpractice claims out of the fund.

Read more at the Post-Gazette.