Guinn says he has plan to back doctors

Erin Neff

Monday, March 11, 2002 | 11:05 a.m.

Gov. Kenny Guinn plans to offer his own short-term solution to the medical malpractice crisis pushing a number of doctors to leave the state because of the cost of insurance.

Guinn plans to announce some details of his plan Tuesday to encourage doctors and other medical professionals to work on solutions of their own. Already four or five different groups are discussing self-funding their insurance, but Guinn said it is critical to act quickly.

Guinn said he would give doctors until April 15 to come up with their own medical malpractice insurance plan before invoking his emergency powers to set up a program while the Legislature is between sessions.

"I have my alternative ready," Guinn said. "My alternative for the state is solidified. If (the doctors) aren't up and running, capitalized and structured ... I have no other choice but to protect the people of this valley."

The medical malpractice crisis was set off in December after a major insurer announced it was leaving the state because it was losing money providing coverage to doctors. As a result, doctors have seen their rates soar and several have said they will leave the state because they can't find affordable coverage.

Larry Matheis, executive director of the Nevada State Medical Association, said this morning the governor's assistance would likely be welcomed by the affected physicians.

"The governor's plan would buy us some breathing room while we look at long-term solutions," Matheis said.

Dr. Raj Chanderraj, a member of a Clark County Medical Society working with hundreds of other physicians on a plan to start their own insurance company, said it could be a year before something is up and running. In the meantime, many physicians have already lost coverage with hundreds of other policies set to expire in coming months, Chanderraj said.

"We have physicians who won't be able to work because they will not be able to find affordable coverage," Chanderraj said.

Guinn said he is ready to act to create some sort of state plan to address the estimated 400 to 700 doctors who will lose medical malpractice insurance this year.

In December the St. Paul Cos., which covered 40 percent of Nevada's physicians, announced it would stop offering medical malpractice insurance as policies expire, citing high losses. Doctors losing the coverage said they were facing increases in premiums of 500 percent. In some specialties, doctors have to pay upward of $200,000 just to get insurance to practice in Nevada.

"Those are doctors in high-risk specialities that are important to us," Guinn said.

Guinn reserved comment on specific details of his plan pending further legal review. In the past his aides have suggested the state development a doctors mutual insurance company or a joint underwriting association to make sure doctors can find reasonable rates.

Asked whether his plan would require any taxpayer funds, Guinn said: "You could be on (taxpayer money) in some instances."

One private citizen has offered $10 million to get a program started, Guinn added, declining to name the person.

Most of the doctors' insurance coverage expires this summer, so Guinn said he wanted doctors studying alternatives to come up with a plan by April 15. He also said he suggests doctors pull together.

"We're going to have to encourage the entrepreneurs, the doctors to aggregate," Guinn said. "I don't believe you can go out there and have five different programs."

Guinn has been talking with a number of doctors in recent weeks about the problem. On Friday one suggested solution proved unworkable, and was dropped.

Sun reporter Emily Richmond contributed to this story.