Medical Malpractice Conference Sheds Light on the Need for Reform
7/18/2004

Raleigh, North Carolina (June 21, 2004) Freeman Enterprises' founder and CEO, Lynne Freeman, recently attended the Physicians Insurers Association of America (PIAA) Annual Meeting in Boston, Massachusetts. The PIAA, a trade association, was created in 1977 after many doctor-owned malpractice companies formed as the result of a crisis in the insurance marketplace. The crisis began in the early 1970s when the cost of malpractice claims increased dramatically forcing many commercial carriers to withdraw from the medical malpractice marketplace. The remaining malpractice companies increased their premium substantially. With insurance becoming too costly or not available at all, doctors devised their own solution by creating their own professional liability companies. The PIAA later formed to provide a conduit for the sharing of information between member companies as well as to promote positive changes in legislation, research, risk management and education. "The PIAA meetings are a great way to learn more about the trends impacting malpractice companies," stated Freeman.

Over 500 top executives in the medical malpractice insurance industry met from May 26th until May 29th to discuss emerging issues facing the industry. The keynote address was delivered by Donald Palmisano, MD, JD who is President of the American Medical Association. Dr. Palmisano is at the forefront of medical liability reform efforts across the country. He explained the current liability crisis is partly due to increasing jury awards. He further demonstrated how the ongoing crisis is impacting access to care because physicians are sometimes closing or moving their practices because of skyrocketing malpractice costs. Further, significant numbers of medical students are considering the current liability situation when choosing their specialty and the location to complete their residency training. Dr. Palmisano also highlighted several studies which concluded that reforms, particularly caps on non-economic damages, reduce the likelihood that a doctor will be sued and cause malpractice premiums to decline. "Dr. Palmisano clearly has considered the issues facing the malpractice industry today and has offered compelling reasons for caps to be enacted on non-economic damages," stated Freeman.

During the course of the 4 day event, various break-out sessions were offered addressing topics from Bariatric Surgery to Telemedicine. The meeting concluded with the Peter Sweetland Award of Excellence being bestowed upon David Bounk, CEO of Midwest Medical Insurance Company. The award, honoring PIAA founder Peter Sweetland, is the PIAA's highest honor. It is given annually to an individual who has made remarkable contributions to the malpractice industry. "I had the great please of meeting Mr. Bounk personally and witnessing first hand his passionate support of the PIAA initiatives," stated Freeman.

(Freeman Enterprises is a leading recruiting company offering contingency and retained searches in claims, marketing, underwriting and risk management to the professional liability industry since 1994.)