Physicians see North Carolina tort reform as first step

Doctors and lawyers agree on an arbitration program but disagree on more comprehensive reforms.

By Amy Lynn Sorrel, AMNews staff. Oct. 8, 2007.

In a rare development, North Carolina physicians and trial lawyers found common ground on a new law that caps damages in medical liability cases that go to arbitration. But doctors see the measure as just the first step toward more comprehensive reforms.

On Aug. 31 Gov. Mike Easley signed the Voluntary Arbitration of Health Care Claims Act. It places a $1 million limit on total damages in medical liability cases when both parties agree to resolve their dispute through binding arbitration. The law requires attorneys on both sides to discuss the option to arbitrate with the parties involved. It also outlines a host of mechanisms designed to resolve claims more quickly and less expensively than traditional litigation. The statute will take effect Jan. 1, 2008.

"This is a strong start to a conversation about tort reform, and that's as important as anything right now," said Chip Baggett, legislative relations director for the North Carolina Medical Society, which backed the law.

Of particular significance, the measure marks the first time doctors in the state have had any cap on awards in the medical liability context, Baggett said. In addition, the statute sets up specific procedures and timelines for selecting arbitrators and conducting discovery. Hearings would start within 10 months of the parties' agreement. Arbitrators must issue a decision within two weeks of the hearing's completion, versus the average two to three years it can take for a case to make its way through trial.