Wisconsin governor wants liability pool money for health programs

Doctors and state auditors say the plan could violate a law stipulating the fund be used only to compensate injured patients and curb liability costs.

By Amy Lynn Sorrel, AMNews staff. April 23/30, 2007.

Wisconsin doctors are sounding the alarm on Gov. Jim Doyle's plan to raid $175 million from the state's medical liability compensation fund to pay for health care programs.

Doctors, hospitals and other health care professionals pay annually into the Injured Patients and Families Compensation Fund, which covers medical liability claims that exceed their $1 million policy coverage. As part of his two-year budget for 2007-09, Doyle proposes to transfer money from that fund to finance state Medicaid programs, Medicaid reimbursement rates for doctors and hospitals, and an initiative to help doctors switch to electronic medical records through a newly created health care quality fund.

Doyle claims that the compensation pool has plenty of funds to spare, having accumulated $737 million in cash and investments, as of June 30, 2006, according to a March audit.

Doyle's office did not return calls for comment. The governor has defended the proposed transfer, saying initiatives such as promoting EMRs will help reduce medical errors and lawsuits, according to an Associated Press report.

But doctors and independent state auditors say dipping into the fund may not only be illegal but also would destabilize the fund, which has helped stabilize Wisconsin's medical liability climate.

"The fund has been run well, and that's why it's a target," said Mark M. Grapentine, senior vice president of government relations for the Wisconsin Medical Society.

"If you end up taking a gigantic amount of money out, the board of governors has a fiduciary responsibility to make sure it's sound, so they will raise rates," he warned.