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Stop Lawsuit Abuse
Good Shepherd Hospital Speaks up for Tort reform
This statement by Ken C. Cunningham, Vice-President of Good Shepherd Health Systems, Longview, Texas was given before the Senate State Affairs Committee, April 28, 2008:
“Without reservation, tort reform in Texas has greatly enhanced Good Shepherd Medical Center’s ability to fulfill its commitment to our community. Tort reform has resulted in a significant reduction of frivolous lawsuits and claims and has allowed our organization to realize a substantial reduction in defense costs and indemnity payments. In addition, our steadily increasing premium for professional liability insurance coverage, which was in excess of $1 million, was reduced by half as a result of tort reform in Texas. These substantial savings have been imperative to maintaining a financially sound organization and improving our services to our community. It has allowed Good Shepherd to expand its neonatal intensive care unit, obtain and maintain a Level II Trauma designation, and recruit physician specialists essential to meet our community needs. Each year our cost to provide care to our uninsured and underinsured population continues to grow at an exponential rate with charity and unreimbursed care reaching $130 million last year. Our hospital’s financial viability is essential to being able to continue to meets these needs.”
Ken C. Cunningham, Esq.
Vice President
Good Shepherd Health System
Longview, Texas
A Letter to the Editor
The following letter appeared in the Lufkin Daily News on July 6th, 2008 as well as the Legal Reform News on July 17th, 2008:
July 3, 2008
Editor
Lufkin Daily News
Post Office Box 1089
Lufkin, TX 75902-1089
Dear Editor:
I've been a strong supporter of lawsuit reform in Texas for many years and sincerely believe it's been good for our state. Once the "world's courtroom," Texas has proven that legal reform fuels economic growth and improves access to healthcare. According to the Federal Reserve Bank of Dallas, the state's globally integrated economy outpaced the nation last. Part of the credit goes to a favorable business climate that recognizes the advantage of a fair and balanced legal system.
Not many years ago, Texas faced a healthcare crisis created by skyrocketing medical liability premiums. Voters responded by passing Proposition 12 in 2003 capping noneconomic damages in medical liability claims and enabling the medical community to deliver on its promise to improve healthcare.
During the past four years, Texas has licensed more than 10,000 doctors, a 30 percent increase from the four years previous. Contrary to the rhetoric of those looking to undo the progress created by legal reform, none ofthe state's new doctors have been accused of harming patients. In fact, according to The New York Times, only one-tenth of 1 percent of those new doctors has been subject to disciplinary action of any kind.
Legal and medical liability reform has dramatically helped your fine local hospitals, as well. Good Shepherd Health System has been able to expand it neonatal intensive care unit, obtain and maintain a Level II Trauma designation, and recruit physician specialists essential to meet your growing community needs. Savings resulting from a less litigious environment help Good Shepherd and other hospitals across the state maintain financially sound organizations, especially in the face of the rising costs of providing care to the uninsured and under-insured Texans.
In the three years or so following the passage of Proposition 12, charity care rendered by Texas hospitals increased 24 percent. Without the financial stability brought on by Proposition 12 this $594 million increase in charity care would have forced many Texas hospitals to make the stark choice of turning away patients or closing their doors altogether.
Passage of Proposition 12 also ensured that patients who have been injured receive the justice they deserve without having to wait in line behind a slough of questionable lawsuits. At the same time, liability reform balances justice with the need to continue pursuing medical innovations and treatments that can benefit millions.
When it comes to healthcare access and economic growth, legal reformers must remain vigilant and continue to make the needed progress for Texas and its citizens.
Ralph Wayne
Board Member East Texans Against Lawsuit Abuse
Former President, Texas Civil Justice League
Former Chairman, American Tort Reform Association
