June 15, 2009 NEWSLETTER
Doug Wojcieszak, Founder & Spokesperson
Contact phone/e-mail address: 618-559-8168; doug@sorryworks.net
IN THIS EDITION:
- SORRY WORKS! COMING TO NEW YORK!
- RISK MANAGEMENT WEEK SALE - 25% OFF SORRY WORKS! BOOK
- ADD TO "FOUR FACTS" ON DISCLOSURE FOR DOCTORS
- WEDNESDAY CHATS...LONG-TERM CARE THIS WEEK!
SORRY WORKS! COMING TO NEW YORK
Sorry Works! is happy to announce a major step in New York with Doug Wojcieszak, Sorry Works! Founder, attending the New York Medical Group Management Association Meeting in Saratoga, NY on the morning of Wednesday June 24th. Wojcieszak will be at the booth sponsored by HUB International where, courtesy of HUB International, he will be signing and handing out free copies of the Sorry Works! Book.
It looks like Sorry Works! is heading to the Empire State just in the knick of time. The moratorium on med-mal rates is expiring on June 30th, and people are desperate for answers. Sorry Works! is the answer. We encourage New Yorkers to get to know us and learn Sorry Works! As you will see by the article, New York is a true "med-mal mess." Physicians, hospitals, and insurers need to gain control of their liability problem, and nothing does it better than disclosure and apology. It's proven. In fact, with Sorry Works! physicians can literally be done with the political and legal quagmire of med- mal.
State of emergency for med mal coverage
Insurers may raise their rates; doctors, hospitals would feel pinch
By Gale Scott
Crain's New York
A yearlong state moratorium on medical malpractice insurance rate hikes is set to expire on June 30, and that means long-simmering issues are about to boil over.
All stakeholders are pushing for state action. Insurers are clamoring to charge higher rates, doctors are threatening to leave New York if insurance costs are not controlled and financially stressed hospitals are seeking limitations on the size of malpractice awards. In the absence of significant reform, an extension of the moratorium may be the best short-term solution, at least for the doctors, experts say.
Only two major medical malpractice carriers serve the state, and both have cash reserve problems. The largest, Medical Liability Mutual Insurance Co. in Manhattan, provides coverage for about 60% of physicians. Physician Reciprocal Insurers, a Long Island company, insures about 25% of New York's doctors.
Physician Reciprocal has a "negative surplus" of $43 million, which means that under state regulation it is insolvent. The company's response: Change the rules. It is lobbying for a state law that would allow it to scale back the reserves it must keep-a proposal that has alarmed many within the Insurance Department who say that such a change would be inviting Ponzi scheme scenarios.
Low on reserves
Medical Liability Mutual, which strongly opposes such a change, admits that its own reserves have dwindled to $300 million. That is far less than the $1 billion that company Vice President Ed Amsler says the company should have on hand to pay claims, which is why it wants a rate increase.
Meanwhile, the rate freeze's looming expiration date has reform advocates frazzled - they fear big rate increases if the Legislature doesn't extend the freeze. For physicians in specialties like neurosurgery, obstetrics and orthopedics, where lawsuits and large malpractice awards and settlements are most common, six-figure annual premiums - up to $180,000 a year for obstetricians - are the norm. Their professional groups are among those, including hospitals, seeking relief through reform in Albany.
The last rate increases were in July 2007, when the state approved a 14 percent hike-far lower than what the two major carriers said they needed. Later that year, Gov. Eliot Spitzer had then-state Superintendent of Insurance Eric Dinallo convene a medical malpractice advisory task force to come up with solutions to the rising costs of premiums. Those include setting up a no-fault birth injury compensation fund, creating special health court hearings to replace jury trials, and capping malpractice awards to victims.
But when Mr. Spitzer resigned in March 2008, both the task force and the reform movement lost momentum. In July, Gov. David Paterson's administration decided to buy time with the current rate freeze. Hopes dimmed even further with the recent resignation of Mr. Dinallo.
Another moratorium?
"We are exasperated and fearful" about what will come next, says a source in the office of Assemblyman and health committee Chairman Richard Gottfried. "Every group that comes in to seek our help on this, we've been telling them to ask the governor's office to enact another moratorium."
The American College of Obstetricians and Gynecologists wants the moratorium continued, but only as a prelude to significant reform. "We are going to see doctors leaving the state because they can't afford the insurance, and that means women with no doctors," says Executive Director Donna Montalto, predicting double - digit insurance rate increases for obstetricians when the rate freeze ends.
As the pressure mounts, Albany refuses to discuss what will happen. "The issue remains gridlocked," says David Sandman, executive director of the New York State Health Foundation. He says that many potential solutions developed by the task force remain viable, if anyone were interested in acting on them.
"We put in so much time and work, but when Gov. Spitzer resigned, it all fell off the table," says Mr. Amsler of Medical Liability Mutual.
Many fault the state's trial lawyers for the task force's failure. For instance, the group wanted the state to change a law that caps the percentage of medical malpractice awards that lawyers get at 30 percent.
Nicholas Papain, president of the New York State Trial Lawyers Association, denies the charge, saying the group is ready to make some concessions - as long as other stakeholders do the same.
RISK MANAGEMENT WEEK SALE - 25% OFF SORRY WORKS! BOOKS
This week is risk management week, and in honor of the occasion we're offering the best-selling Sorry Works! Book at a 25% discount of $19.99 per copy (regular price $24.99 per copy). Simply go to this link - http://www.sorryworks.net/booksoon.phtml - and order your copy. No coupons or code required...any books ordered between now and Friday at 5pm PDT will receive the special pricing. Bulk discounts are also available by calling 618-559-8168 or e-mailing doug@sorryworks.net.
ADD TO "FOUR FACTS" ON DISCLOSURE FOR DOCTORS
A couple weeks ago we issued our "Four Facts" on Disclosure for Doctors: 1) Disclosure is good for docs; 2) customer service, respect among colleagues, informed consent, etc lay the ground work for disclosure; 3) Provide an empathetic I'm sorry and show you care with out prematurely admitting fault immediately after an adverse event; 4) Immediately after the empathetic I'm sorry call somebody - risk manager, defense attorney, insurance company, etc.
Today, we're adding the fifth fact: Train your nurses and other front-line staff (including receptionists and clerical) on disclosure. Nurses and other front-line staff can make or break your disclosure efforts, so it's critical they have a base-line understanding of disclosure. No, nurses won't be apologizing for doctors, but they can provide their own empathy, care and compassion for upset or grieving patients and families. Often, nurses have a stronger, more intimate relationship with patients and families, so their empathy and care is crucial. Nurses are also critical to customer service and setting reasonable expectations with patient and families. Furthermore, nurses and doctors must be respectful and courteous to one other in front of patients and families. Finally, how nurses and other front-line staff greet patients and families - especially if the schedule is jammed and appointments are really late - is also very important!
Bottom line, nurses and front-line staff need to know their important role in the disclosure process! They need to be trained, and Sorry Works! can help!
We are incorporating the "facts on disclosure" in all our presentations and training, and the message is being well received. For more information on Sorry Works! presentations or training, call 618-559-8168 or e-mail doug@sorryworks.net. Thanks!
WEDNESDAY CHATS...
Last Wednesday we had our first "Wednesday Chat," and it was well- received. In case you missed it, the text is directly below. This Wednesday's chat will focus on long-term care providers. Be sure to catch the Wednesday chat!
June 10, 2009 Wednesday Chat
Welcome to the first "Wednesday Chat." These are short e-newsletters on special topics or issues with some questions or requests for help from you, our readers. For the first chat we are going to talk about reinsurers. Or secondary insurers. These are the companies that literally insure the med-mal carriers. Million dollar judgment? The doctor-owned mutual in your state typically is only responsible for part of the judgment - say $250K - and the balance is paid for by the reinsurer. So, reinsurers have significant interest in the severity of cases. And no wonder many reinsurers were buzzing after the Sorry Works! presentation at the Guy Carpenter meeting in Las Vegas in late April, and buzzing again a week later at the Sorry Works! Booth & seminar at the Crittenden's meeting in Tampa, Florida. Even last week, a group of physicians covered by their own risk retention group (RRG) said they were going to tell their reinsurer about the Sorry Works! training they had just received to show they are doing their part to keep severity under control - which will hopefully lower rates they pay the re insurer!
Sorry Works! has conducted countless presentations and training for med-mal insurers & RRGs as well as hospitals, large medical practices, and physicians (Grand Rounds). We have not yet provided any direct presentations for reinsurers. We want to engage these folks. We're asking for your help! Are you a reinsurer? Or do you have a relationship with a reinsurer? To the reinsurers, you are always looking for ways to help your insureds - the insurance companies and their providers - keep a lid on severity. Sorry Works! can help! Nothing drives severity like an error coupled with lousy customer service and a cover up. Nothing makes patients/families angry and trial lawyers smile like a cover up! With Sorry Works!, we teach providers, risk managers, and defense counsel how to handle adverse events in a pro-active yet disciplined approach that not only minimizes anger but maintains the relationship with the patient or family. We strive to help the patient-provider relationship transcend the event. We teach doctors and nurses how to empathize and provide excellent customer service before and after an event without prematurely admitting fault - this is our new focus on the "Facts of Disclosure."
To med-mal insurers, hospitals, and large practices, you are always looking for ways to show your reinsurer that you are doing your part to keep severity to a minimum. Getting your people trained on Sorry Works! is a great way to show you are serious about severity.
Call us today at 618-559-8168 or e-mail doug@sorryworks.net for more information.
See you next week for another Wednesday chat!
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