Impact of Revised Venue Regulations on Pennsylvania Medical Malpractice Insurance
Three years ago, Pennsylvania revised its venue regulations for medical malpractice cases, allowing lawsuits to be filed in any county, independent of where the alleged malpractice occurred. This change has significant implications for the insurance industry, impacting both regulatory compliance requirements and the dynamics between payers and providers within the state.
The shift in venue rules has led to a concentration of malpractice cases, particularly in Philadelphia—a jurisdiction noted for yielding higher verdicts favorable to plaintiffs. According to data from the Pennsylvania Medical Society, there has been a notable increase in cases filed in Philadelphia, many of which involve incidents originating outside the city. This centralization in a plaintiff-friendly area can elevate financial liabilities for insurance carriers, prompting a rise in malpractice insurance premiums by 10.5 to 16.1 percent for specific medical specialties, as insurers adjust for increased perceived risk.
The implications extend beyond underwriting and claims management, influencing healthcare operations statewide. Elevated liability risks could deter physicians from specializing in high-risk fields, potentially resulting in a scarcity of qualified professionals in essential areas like obstetrics and emergency medicine. This shift poses a risk management challenge, limiting healthcare access, particularly in underserved communities outside of Philadelphia. The ongoing debate over venue rules underscores the need for balanced regulatory policies that do not disproportionately affect the state's healthcare and insurance sectors.
Robert Daday, an attorney based in Allentown, advocates for a reconsideration of these venue regulations, emphasizing the economic implications and the importance of fairness and system sustainability. Aligning case venues with the communities directly impacted could alleviate financial strains, as evidenced by rising premiums and operational challenges faced across Pennsylvania’s insurance landscape.