Liability insurer pullout led to crisis

Monday, Feb. 2, 2004 | 9:22 a.m.

The medical malpractice crisis hit the Las Vegas Valley after a major liability insurer pulled out in 2001.

As a result of the reduction in medical liability insurers, premiums rose and many physicians left or scaled back their practices. Also, the valley's only trauma center closed for 10 days.

Nevada's Legislature made a few attempts in 2002 to reform the malpractice situation by putting a $350,000 cap on noneconomic damage awards with two exceptions. Awards can be higher when there is gross malpractice involved or when a judge determines exceptional circumstances in the case. Another malpractice reform in Nevada prohibits malpractice insurers from passing investment losses onto physicians through premium increases. Also, obstetricians' malpractice premiums cannot be based on the number of babies they deliver.

Physicians say the Legislature didn't reform the malpractice laws enough, but most physicians say they haven't given up yet. Some have even moved here in hopes that their liability premiums will level off before they get too high.

The Nevada State Board of Medical Examiners, the licensing board for medical doctors, reported a net gain of 56 Nevada physicians from July 1, 2002, to Dec. 29, bringing the total to 3,602 active licenses with Nevada addresses.

The State of Nevada Board of Osteopathic Medicine, the licensing board for osteopathic physicians, reported a loss of 16 osteopathic physicians in 2002, but part of the reason for the loss was the tripling of licensing fees that year, said Trey Delap, deputy executive director.

Delap said it is difficult to determine how many physicians left the state, but he is certain some physicians are moving to other states while others are keeping their licenses and not practicing.

An initiative on the November 2004 ballot will attempt to further reform medical malpractice law.