Judiciary committee holds interim hearing on medical malpractice liability

The Judiciary Committee heard testimony Dec. 15 on LR226, which called for an interim study on medical malpractice liability.

“Medical malpractice impacts everyone,” said Omaha Sen. Gwen Howard, who introduced the resolution.

Testimony focused on the limitation of damages awarded to victims of medical malpractice.

John Lindsay of the Nebraska Association of Trial Attorneys said damages are capped at $1.75 million. The limit has not kept up with inflation over time, he said.

“It has increased once in the past 17 years,” he said.

The limitation on damages provides an unfair negotiating advantage for insurance companies.

David Geier, a Lincoln attorney, said the first $500,000 in malpractice claims for doctors comes from private insurance and the next $1.25 million is from the excess liability fund, which is administered by the state Department of Insurance. Currently, the fund pays about 25 claims each year, he said.

“The number of claims has nearly tripled and the amount paid by the fund has nearly doubled,” he said.

Lisa Gourley said her son suffered severe brain damage at birth due to medical malpractice. After a three-week trial, she was awarded $5.6 million in damages, but a 10-year legal battle reduced the damages by 80 percent, she said. Gourley said doctors estimate it will cost $12.4 million for a life care plan for her son. In only three cases in 33 years have victims been awarded damages more than the capped amount, she said.

“The financial responsibility should fall on the negligent party,” Gourley said, “not our family.”

The committee will continue to study the issue and will issue a report of its findings.