Medical offices in tech park in doubt

Diana Sahagun

Thursday, Feb. 7, 2002 | 9:23 a.m.

The sale of one of the last parcels in the northwest Las Vegas tech park is in jeopardy because rising malpractice insurance rates continue to affect the medical community.

Box Canyon Professional Park, LLC., a group of local medical professionals, has a 6.16-acre parcel in the tech park near Cheyenne Avenue and U.S. 95 in escrow for $2.95 million.

But local surgeon William Peugh told the City Council Wednesday that the doctors need 90 days to re-evaluate their practices because high rates for malpractice insurance are driving doctors out of Nevada.

The crisis began late last month when St. Paul's Cos., Nevada's largest provider of malpractice insurance, announced it would stop providing malpractice coverage in the state. The decision could force nearly 40 percent of Nevadan's physicians to either pay the high premiums or shut down their practices.

Gov. Kenny Guinn has called for a hearing to gather more information on medical malpractice insurance, and legislators are considering including a bill in 2003 that would limit the money juries can award in malpractice lawsuits. Doctors and insurance industry representatives say excessive, frivolous medical malpractice lawsuits are driving up insurance rates.

Peugh said several vascular surgeons, obstetricians and gynecologists have closed their doors because they can't pay the higher premiums. Peugh is also considering moving to another city.

"I really do see a health care crisis on the horizon in the next few months," said Peugh, who has been in Las Vegas for seven years.

Goodman, who is pushing for an academic medical center downtown, said it is critical that doctors are not forced to flee Las Vegas. Goodman -- who has met with several doctors about the issue in recent months -- said he would help in whatever way he can, including asking Guinn to call a special legislative session.

"I don't want to be an alarmist, but the alarm is ringing," Goodman said. "This is of epidemic proportions, and unless it's resolved quickly, a dream I have will not be able to realize itself. This community cannot afford to have fine physicians leave us."