Obstetrics Crisis Worsens as Brooklyn Hospital Closes Department
In response to the steep increase in medical malpractice insurance rates, a hospital in Brooklyn has decided to close its obstetrics department. Although the hospital will maintain a gynecology department, it will no longer be delivering babies. Last year, the hospital delivered nearly 3000 babies, and it will likely deliver more than 2200 this year, but the department carries a significant deficit. The hospital runs an annual deficit of about $34 million, and the obstetrics department is responsible for a significant portion of it: $11 million, or nearly 33 % of the total deficit.
What is the reason for the deficit? Medical malpractice insurance is a huge part of that cost. The department pays $8.8 million in insurance every year, 33% of the total paid by the hospital, and 80 % of the department's deficit. Does this mean that medical malpractice lawsuits are forcing obstetricians out of business?
No. Although medical malpractice insurance rates spiked by 14 % last year, payouts for medical malpractice have actually remained constant against other expenses incurred by doctors, including increasing costs for supplies.
Medical malpractice insurance, then, is a major problem, as it represents an opportunity for corporate profit to add another layer to the costs paid by doctors. Better regulation of the insurance industry is necessary to keep it from raising rates while enjoying record profits.
If you or someone you love has been hurt as a result of a medical malpractice birth injury, you know the mother and child have significant expenses that must be taken care of, and it is unfair for you to pay for the outcome of someone else's mistake. Contact the experienced birth injury lawyers at Pomerantz, Perlberger, and Lewis, LLP today for a free initial consultation and learn how you can make sure your loved ones are cared for.
