The proposed bill amends the Medical Malpractice Act to introduce several significant changes regarding the limitations on recovery for medical malpractice claims, the handling of punitive damages, and the establishment of a new fund aimed at improving patient safety. Key provisions include the requirement that payments from the Patient's Compensation Fund be made as expenses are incurred, and that seventy-five percent of any punitive damages awarded in medical malpractice claims be directed to the state, with the remaining twenty-five percent going to the prevailing party. Additionally, the bill sets specific limits on attorney fees for malpractice claims, capping them at twenty-five percent for settlements prior to trial and thirty-three percent for recoveries after trial begins.

Furthermore, the bill creates the "Patient Safety Improvement Fund," which will be funded through various sources, including punitive damage awards, and will be used to enhance patient safety and healthcare outcomes. The fund will be administered by the Department of Health, and any unspent balance at the end of the fiscal year will not revert but will remain available for future use. The bill also clarifies that the value of accrued medical care and related benefits is not subject to limitations, ensuring that patients receive the necessary care without financial constraints.

Statutes affected:
introduced version: 41-5-6, 41-5-7