Maryland Physician Pool Disappearing in Dramatic Numbers

Medical  Malpractice Insurance Cited as Major Reason

BALTIMORE, MARYLAND, October 5, 2004 —  Almost 40 percent of Maryland physicians surveyed by the Maryland Medical Society (MedChi) are considering closing their 

practices, retiring, or relocating and cite dramatically rising costs, especially medical malpractice premiums, as the stimulus.  

Of the 774 physicians responding to the society’s survey, conducted during August and September, 28.6 percent said they were contemplating closing or selling their practices or retiring, while 9.8 percent indicated they might relocate to other states, where their costs of doing business would be less. 

Medical malpractice issues figured prominently in the survey results, highlighting how Maryland healthcare is changing because of increased insurance expenses and the threat of medical liability cases. For example, 25 percent of the physicians responding said they had already reduced emergency room services, and 12.4 percent said they were considering having to do that. Nearly one third of the respondents said they had ceased certain services; about 19 percent reported they were contemplating cutting back services. According to the responses, 16 percent of the doctors said they had implemented administrative surcharges, while almost 22 percent said they were considering additional patient charges. Twenty six percent said they were contemplating reducing or eliminating medical practice insurance. 

The survey also indicated that healthcare jobs are at risk with 16.7 percent of the respondents reporting they had laid off employees and almost 12 percent saying they may have to do so.  

“These survey results are disturbing because they show that increasing medical malpractice insurance costs are diluting the pool of talent among physicians and eroding the services they offer Maryland patients. These runaway expenses are also starting to claim healthcare jobs,” said Michael Preston, MedChi’s Executive Director. 

“This is a troubling omen, not only for the short-term but also for the long-term economic health of the State. Maryland has always been able to tout first-rate healthcare as an attraction for companies and organizations to establish a presence here. If our doctors are going elsewhere or closing their practices altogether, and the State’s healthcare system starts to lose its ability to recruit new healthcare expertise, the impact of that spreads throughout the entire Maryland economy,” said Michael Preston. 

Mr. Preston says MedChi is seeking reforms in Maryland’s medical liability laws and is urging the legislature and the Ehrlich Administration to understand that unless they put politics aside and find a way to cooperate in “curing a sick system,” patients throughout the State “will be the ultimate victims.” 

Doctors around the State have recently been considering “going bare,” or practicing without medial malpractice insurance because premiums for most of them have increased more than 70 percent in the last two years. Mr. Preston says that trend could change Maryland’s delivery system dramatically. 

“Leaders in Annapolis have to stabilize the runaway costs and institute major reform in Maryland’s medical liability environment—and quickly—to avoid a major healthcare crisis and an associated statewide economic downturn. MedChi stands ready to work on a bipartisan basis to find a solution, and we hope that all parties involved recognize that the situation is a very serious—and dangerous one,” Mr. Preston concluded.