Philadelphia Personal Injury Attorney Blog | Pomerantz Perlberger & Lewis LLP

New York is potentially facing its biggest obstetrics crisis ever, with ten percent of its obstetricians considering retiring, reducing hours, or moving out of state this year as a result of a new $50,000 surcharge on medical malpractice insurance which they would be forced to pay in addition to the $137,000 in premiums each doctor already pays annually. Others are opting to either stop delivering babies or are joining larger practices where their premiums are absorbed into the costs of the practice premiums.

Of course, insurance premiums are not the only rising cost doctors are contending with in making decisions about the future of their practices, but at nearly $200,000 a year it is a highly visible factor. With a 25 % jump this year and the temptation of a $40,000 annual medical malpractice insurance premium if they do not deliver babies, it is a powerful incentive for doctors to cut that part of their practice.

Why are premiums so high for obstetricians who deliver babies? There are two factors. First, birth injuries are very expensive. A baby born with cerebral palsy as a result of a doctor's error requires a lifetime of care, expensive care. Second, insurance companies want to make a profit. Not only that, but they want their profit to grow every year to keep investors happy. Part of insurance companies' profit comes from premiums, and part of it comes from investments. When investments lose value, as during the current market crisis, insurance companies need to take a little more in premiums.

Medical malpractice insurance is business, and it's big business. Pennsylvania doctors are charged nearly a billion dollars in premiums every year. But what happens to mothers and children caught in the crunch between high-profit business and the need for care? Tomorrow we'll talk about a possible solution.

Obstetricians are doctors that many women feel a powerful bond with, and if a woman suffers an injury, she may feel reluctant to bring a lawsuit. But if you have suffered as a result of an obstetrician's error, you and your child must be taken care of, and unfortunately our system allows you very few options. Please contact an experienced medical malpractice attorney at Pomerantz, Perlberger, and Lewis, LLP today for a free consultation.