N.J. doctor protest centers on rising malpractice costs

A five-day-old work slowdown by doctors throughout the state appears to be continuing despite a compromise reached by lawmakers in the N.J. Senate on Tuesday. Many of the state's 22,000 doctors have canceled non-urgent care appointments to protest skyrocketing malpractice insurance premiums.

The work slowdown has not affected services at McCosh Health Center, Chief Medical Officer Daniel Silverman said. However, University employees may be affected because most see primary care physicians in the local community, he said.

The N.J. Senate's proposed legislation would establish a trust-fund to pay for pain-and-suffering claims of more than $300,000. Money in the fund would come from fees paid by insurers, doctors and lawyers.

However, despite the legislative compromise, a spokesman for the Medical Society of New Jersey said doctors who had decided to cancel appointments for several days probably would still do so. The proposed legislation does not include a $250,000 cap on jury awards for pain and suffering as many doctors have demanded.

Gov. James McGreevey (D), groups representing trial lawyers, and consumer groups have opposed caps on noneconomic jury awards as being unfair to victims of medical malpractice.

High malpractice insurance premiums have become an acute problem in New Jersey more than the past several years. The American Medical Association has identified New Jersey as one of twelve "At Risk" states that suffer from dangerously high levels of medical malpractice insurance.

The state's high malpractice insurance rates have resulted mainly from an increase in awards to plaintiffs in malpractice suits. The high rates, which also increase the overall cost of health insurance for patients, are forcing many physicians to abandon practice in New Jersey because they can no longer afford to stay in business.

The specialties most directly affected are obstetrics, neurology, radiology and general surgery — specialties that involve high-risk procedures that make practitioners vulnerable to lawsuits.

"My company pays insurance in two different areas," said Ariel Abud, a neurosurgeon in the Princeton area. "I am very lucky that no claims have been filed against me — I only pay $50,000 a year in malpractice insurance, whereas most of my friends pay two or three times that. Many of them are leaving the state. I pay $350,000 a year for my employees' health insurance, which have been driven up by the cost of malpractice insurance."

"Because Medicare continues to decrease assistance to physicians," Abud said, "I must pay more and more out of my pocket for the costs of operations. The number of applications for neurosurgery positions has decreased drastically over the last five years. Medical students are very definitely being deterred from entering high-risk fields because they cannot afford to begin to practice."