Pennsylvania Medical Society comments on court ruling against state

Apr 15 2010

By James A. Goodyear, MD

The following is a statement from James A. Goodyear, MD, president of the Pennsylvania Medical Society, regarding a Commonwealth Court 4-1 ruling indicating the state should not have diverted money from the Mcare Fund and Health Care Provider Retention Account to help with state budget problems.

The Pennsylvania Medical Society is deeply gratified that the Commonwealth Court agreed with our argument that the state should not have taken money from the Mcare Fund and the Health Care Provider Retention Account that’s intended to help compensate successful malpractice claims. The total amount diverted is estimated between $566 to $716 million.

The court found that the Commonwealth improperly failed to transfer up to $616 million from the Health Care Provider Retention Account to the Mcare Fund to pay for premium relief enacted by the General Assembly between 2003 and 2007. The court found that physicians had a vested right to that relief that could not be overturned by a subsequent act of the legislature.

The court also recognized that physicians have a vested property right in the money they paid into the Mcare Fund for liability insurance coverage. The court further found that physicians were harmed by the Mcare Fund raid because it reduced the Fund’s ability to meet future obligations. Addressing the Mcare Fund’s $1.6 billion unfunded liability is urgent, as the Fund is scheduled to be phased out and replaced by private insurance coverage. Under current law that obligation would have to be paid by health care providers.

Our organization warned the state as early as 2008 that a raid of the funds was wrong. We worked tirelessly with all parties at the capitol to avoid the current situation. Needless to say, we were disappointed that we had no choice but to pursue legal actions when Pennsylvania’s physicians and hospitals were wronged.

We understand that there will be some implications to Pennsylvania’s budget as a result of the ruling. And, as in the past, the Pennsylvania Medical Society will continue to extend its offer to work with the state on this issue.

The patient-doctor relationship has been the priority of the Pennsylvania Medical Society since its founding in 1848. While there are many issues always being debated, the physician members will continue to focus on better health for all Pennsylvanians. To learn more about the Pennsylvania Medical Society, visit the web site at www.pamedsoc.org or its patient website at www.myfamilywellness.org. The Institute for Good Medicine at PAMED can be found www.goodmedicine.org.