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Maryland’s No Fault Birth Injury Fund

By Byron Warnken, on February 12, 2014

Severe neurological injuries can occur during birth that leave infants permanently disabled and in need of prolonged medical care. A bill was proposed in the Maryland General Assembly last week that seeks to limit the compensation available to families that experience such tragedies, in favor of a hearing in front of an administrative law judge to determine recovery.

The “Maryland No-Fault Birth Injury Fund” was proposed to try to reduce medical malpractice insurance costs paid by doctors and hospitals who offer obstetrics and gynecological services. As part of the bill, doctors, hospitals and insurance companies would pay into the “Fund” annually. The bill is a method of tort reform that would limit victims’ access to civil courts, jury trials and adequate recovery. The Fund seeks to reduce insurance costs by reducing accountability, rather than focusing on improved medical care.

The sponsors of the bill, Johns Hopkins Hospital and the University of Maryland Medical System, along with Delegate Dan K. Morhaim (D-Baltimore County) proposed the Fund.

Supporters of the bill, like Mercy Medical Center, consider it a form of “cost containment.” Some would have you believe that recent lawsuits have drastically increased medical malpractice insurance costs.  However, no proof of this exists.  Moreover, no one has sought to put a cap on insurance company profits or operating costs as a way of reducing malpractice insurance.

Supporters seek to limit what they pay out when a serious birth injury occurs as a result of mistake or negligence.

Opponents of the bill argue that the bill does nothing to actually prevent negligent care. It removes accountability and is the wrong method for reducing costs. Some health groups and hospitals are in agreement. The Maryland Hospital Association, Anne Arundel Medical Center, Greater Baltimore Medical Center and MedStar Health have all voiced an interest in additional review and understanding of the impact of the bill. MedStar Health has proposed more cost effective measures to reduce medical liability costs.

Supporters of the bill suggest that families can still sue in civil court if they can prove the doctor or hospital “maliciously” caused the injury. They also claim that most bad outcomes are not attributable to negligence, but other health factors. While evolving medical concerns may complicate some births, the “No-Fault Birth Injury Fund” directs all victims of birth injury into the same pool when it comes to distributing compensation.

Negligence currently must be proven via the court system in order for the victim to receive compensation.

The “Maryland No-Fault Birth Injury Fund” was introduced in both chambers of the General Assembly last week. If it passes, victims of severe neurological birth injury and their families will have fewer options when it comes to seeking recovery.

(Source: Andrea K. Walker, Birth Injury Fund Sought, Balt. Sun, February 9, 2014 at 1.)

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