Senate Bill 3, one of the nation’s most comprehensive tort reform laws signed last year by Georgia Gov. Sonny Perdue, has already saved many Georgia hospitals hundreds of thousands of dollars in insurance premiums according to the Georgia Hospital Association (GHA), the state’s leading hospital association. GHA’s insurance subsidiary, Health Care Insurance Resources (HCIR), disclosed that from 2005 to 2006, hospitals in the state have saved anywhere from $1,000 to $130,000 in annual premiums.

"After so many years of skyrocketing insurance premiums putting a major financial strain on the entire Georgia hospital community, any savings in this area is big news," said GHA President Joseph Parker. "It allows hospitals to reinvest those dollars into areas that they should have been going in the first place like new medical equipment, physical plant upgrades and employee salaries."

After a three-year debate in the Georgia General Assembly, Georgia’s health care system received a huge boost last year when lawmakers signed one of the most comprehensive tort reform bills in the country that among other things, capped non-economic damages at $350,000 and paved the way for defendants to pay damages equal to the percentage deemed at fault in a multi-defendant trial. While the new law was not expected to reap immediate savings, medical liability insurance carriers re-entered the Georgia market creating more competition and lowering insurance rates. During the height of the medical liability insurance crisis, only one insurance carrier would write policies for hospitals. Today, according to HCIR officials, Georgia hospitals have more than 10 insurers to choose from causing most hospital premiums to flatline or decrease.

"The passage of SB 3 signaled that Georgia, once again, is a friendly climate for health care providers and businesses," added Parker. "Physicians are coming back into the state and hospitals are able to focus on what they do best — providing top-quality health care services. It’s a scenario that strengthens our fragile health care system and greatly benefits every Georgia resident."

While special interest groups representing Georgia trial lawyers have stated that some physician insurers have actually raised premiums since the passage of SB 3, what they failed to mention is that the state’s largest physician insurer, MAG Mutual, which underwrites about 70 percent of all physician policies in Georgia, has frozen its rates for two consecutive years since the bill’s passage.

"It is important to consider that claims history still plays a major role in determining whether or not an insured entity is faced with a rate increase or a decrease," explained Parker. "To say that tort reform has failed because a small percentage of doctors have experienced rate increases is quite misleading."

In fact, since the passage of SB 3, data from several different sources show that tort reform has given Georgia a major boost. Consider this:

• According to a March report from the Georgia Board for Physician Workforce, the state now has 202 practicing physicians per 100,000, up from 193 physicians per 100,000 people two years ago.
• In its first-ever U.S. Tort Liability Index released in May, the Pacific Research Institute (PRI) of San Francisco ranked Georgia’s tort climate No. 10 in the nation — largely because of SB 3. The study’s author told the Atlanta Business Chronicle that had SB 3 not passed, Georgia would have been only No. 45.
• According to a recent study by Emory University Economist Paul Rubin, civil justice reform actually saves lives. With fewer claims to settle, Rubin concludes, hospitals and physicians are able to reinvest those dollars into new equipment and technology that enhance patient safety. Furthermore, emergency room physicians are more willing to work in states with tort reform giving hospitals greater coverage in the emergency room.

"We are very fortunate to have a governor and legislative leadership in Georgia who are willing to stand up to powerful special interest groups and protect Georgia citizens," said Parker. "We are confident that when the judicial process is finally over, SB 3 will still be standing strong."

Caz Matthews Appointed President of The WellPoint Foundation

Blue Cross Blue Shield of Georgia (BCBSGa) recently announced the appointment of Monye Connolly as president.

Connolly, who joined the company in 1986, most recently served as vice president and general manager of BCBSGa’s individual and small group business. Her appointment follows the announcement that Caroline ‘Caz’ Matthews will serve as president of the WellPoint Foundation, the company’s corporate foundation.

"I look forward to working with our state’s leaders, hospitals, physicians, employers, members and community organizations to help address our state’s most pressing health care concerns. All of us share the common goal of creating a healthier Georgia, and by working together we can make that goal a reality," said Connolly.

Matthews, who joined The WellPoint Foundation 1988 and most recently served as president of BCBSGa, will have oversight for the company’s philanthropic and social responsibility programs, focusing on the company’s mission to improve people’s lives and the health of our communities.

"I am very excited about the opportunity to oversee our company’s philanthropic resources and social responsibility programs—including foundation grants, corporate funding, associate fundraising and volunteerism—to help enhance the quality of life and improve the health of our communities," said Matthews.

Terry Hackworth was recently named the new Chief Nursing Officer of Chestatee Regional Hospital. He has brought with him over 15 years experience in the healthcare industry and over ten years of healthcare management experience. Terry obtained his Bachelor of Science in Nursing from Morehead State University and a Masters in Business Administration from the University of Phoenix. Terry has brought a strong clinical and administrative experience to his role as CNO. In addition, he has received his certification in Nursing Administration from the American Nurses Credentialing Center. He enjoys traveling and participating in community activities such as his volunteer work with The Historic Holly Theatre in Dahlonega, GA.