Providers praise president for tort reform act

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Two long-term care organizations thanked President Bush Thursday for introducing tort reform legislation. The proposal would help to redirect funds from lawsuit expenses and towards quality care, the head of the organizations said.

The proposed reforms in the Medicare Funding Warning Response Act of 2008 would set a statute of limitations of three years on all healthcare lawsuits. The act also would cap noneconomic damages at $250,000, limit attorneys contingency fees, and allow for periodic payment of any damage award more than $50,000, among other provisions. The liability reform proposal was required by the 2003 Medicare Modernization Act.

"It is counterproductive to allow limited resources that should go toward quality enhancement to be re-directed to cover lawsuit expenses. We thank the Bush Administration for again addressing this important legal reform," said Bruce Yarwood, president and CEO of the American Health Care Association and the National Center for Assisted Living.  
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