Details of Health Care Liability Reform Act of 2004

What's Included in the Bill?

SUMMARY OF THE HEALTH CARE LIABILITY REFORM ACT OF 2004

BILL 15-874

Volunteer Health Care Professional Immunity: Extends and expands the Free Clinic Immunity Act to cover physicians, registered nurses, and nurse-midwives who provide free care.

Patient Safety Initiatives: Mandates the development of a system for reporting medical errors in hospitals.

Medical Liability Insurance Access: Gives the Insurance Commissioner more authority to monitor medical liability insurance rates.

Certificate of Merit in Medical Liability Actions: Requires a certificate of merit by a physician licensed in the District that there is a reasonable basis for the action.

Limits on Non-Economic Damages: Limits the amount of non-economic damages in a claim against one or more physicians to $250,000 per claimant; and limits the amount of non-economic damages in a claim against one or more health care institutions to $500,000 per institution not too exceed a total of $1M. Economic damages, such as lost earnings, medical care, and rehabilitation costs, are NOT limited by statute.

Evidence of Collateral Source Payments: A defendant in a medical liability action may introduce evidence of collateral source payments (such as from personal health insurance) as they relate to damages sought by the claimant. If a defendant introduces such evidence, the claimant may introduce evidence of the cost of the premiums for such personal insurance.

Elimination of Joint and Several Liability: In any healthcare lawsuit, each party will be liable for that party's several share of any damages only and not for the share of any other person; each party's share will be allocated in direct proportion to that party's percentage of responsibility.

Limits on Attorney Contingency Fees: In an action against a health care provider for professional negligence, an attorney's contingency fee is limited to 40% of the first $50,000 recovered; 33% of the next $50,000; 25% of the next $500,000, and 15% of any amount exceeding $600,000.

Statute of Limitations: A claim for alleged medical negligence must be brought within one year from the discovery of an injury and its negligent cause, or within three years from injury. Lawsuits on behalf of minors must be commenced within 3 years after the injury or date on which minor reaches age 8.

Punitive Damages: allows punitive damages by "clear and convincing evidence" but only in a subsequent—not initial—lawsuit. Punitive damages are limited to twice the amount of economic damages awarded or $500,000, whichever is greater.

Periodic Payments of Future Damages: A health care professional may elect to pay a claimant's future economic damages, if over $50,000, in periodic amounts. This prevents a claimant from wasting an award prior to its actual need.

Medical Product Immunity: Exempts medical product liability.