AMA House of Delegates

AMA meeting: Hospitals may be trying to recoup settlement money

New Mexico delegates say they are seeing more and more claims against physicians after liability cases are over.

By Doug Trapp — Posted June 28, 2010

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The American Medical Association Board of Trustees will examine how frequently hospitals sue physicians to recover the cost of medical liability settlements, according to new policy adopted June 15 at the AMA Annual Meeting.

"We thought this was very much worthy of study by the board," said Albuquerque, N.M., nephrologist Steven Kanig, MD, a delegate for the New Mexico Medical Society, which introduced the resolution.

Dr. Kanig's wife, Barbara McAneny, MD, an oncologist and new member of the AMA Board of Trustees, said she found out about the issue from a physician colleague. The colleague -- a hospital employee -- was the subject of a medical lawsuit. The hospital settled the case but filed a claim against the physician after the doctor left the job. The issue is still being litigated, Dr. McAneny said.

These lawsuits are increasingly common for contract physicians and those who leave hospitals to pursue other employment, Dr. McAneny said, citing conversations she's had with liability insurance brokers.

The policy directs the AMA to investigate the frequency of these suits. It also calls on the Association to write model contract language physicians can use to prevent hospitals from settling lawsuit claims and then suing to recover settlement costs.

Several delegates spoke in support of the resolution, including members of the Young Physicians Section and the Organized Medical Staff Section.

New Mexico Hospital Assn. President and CEO Jeff Dye said he was not familiar with the case or trend cited by Dr. McAneny. Dye plans to ask hospitals in his organization if they have pursued this type of lawsuit.

Dye said he will examine the issue, but he doubts these cases are common. "It just seems really counterproductive that [hospitals] would go after their own doctors in that manner."

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ADDITIONAL INFORMATION

Meeting notes: Medical ethics

Issue: Men who have had sex with men since 1977 are banned from donating blood. A previous AMA report concluded that medical evidence supports allowing men to donate five years after their last same-sex contact, but said the ethical aspects of such a change should be explored.

Proposed action: Study the societal and ethical consequences of moving to a five-year deferral policy and report back at the 2011 Annual Meeting. [Adopted]

Issue: Few adults age 18 to 24 have completed advance directives or named health care proxies, making it difficult for physicians and loved ones to make care decisions on their behalf.

Proposed action: Educate young adults about the importance of advance directives and health care proxies and encourage physicians to talk with their younger adult patients about such planning. [Adopted]

Issue: A growing number of for-profit hospice care organizations have helped double the number of patients in hospice since 2000, to more than 1 million, and nearly quadrupled Medicare hospice costs to $11.2 billion.

Proposed action: Reaffirm physicians' responsibility to authorize hospice care in appropriate circumstances, develop educational materials and call on CMS to study the hospice benefit's structure, pay methodology and quality assurance. [Adopted]

Issue: Industry funding of continuing medical education and CME faculty with financial conflicts may compromise the independence of educational content.

Proposed action: Adopt ethical guidance saying physicians should expect conflict-free CME when possible and that, when unavoidable, the conflicts should be scrutinized closely and disclosed in detail. [Referred]

Issue: Commercial sponsorship of clinical practice guidelines and guideline-committee members with financial conflicts may improperly influence the recommendations made to physicians.

Proposed action: Support the position that physician organizations should not receive industry support for writing or promoting practice guidelines and call for independent review of guidelines before publication. [Referred]

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