Through the program, states and health systems can receive up to $3 million to test these new approaches, and the federal government will then review the processes to see what improves physician practices while reducing costly and dangerous mistakes, according to the report.
Physicians were upset with Sen. Baucus’ bill as it did not address malpractice costs or adequately address Medicare reimbursement. Peter Levine, president of the Medical Society of the District of Columbia, said in the report that the President’s grants were “smoke and mirrors.”
Others in the report said Sen. Baucus avoided the malpractice issue in his bill at the urging of Senate Majority Leader Harry Reid (D-Nev.), who said the Senate Finance Committee had no jurisdiction over these issues.
While Pres. Obama conceded that defensive medicine may contribute to rising costs, some trial lawyers have noted that there is little evidence to show a correlation between lowering malpractice costs and lower costs for patients. Experts in the report said that 1 percent of the $2.5 trillion cost for healthcare is attributable to malpractice costs.
Read the Washington Post’s report on the tort reform grants.
