Amid a chaotic legislative session, Montana lawmakers are pushing forward several bills to enhance legal protections for medical providers, health care systems, and insurance companies facing malpractice claims. These proposed changes, championed by prominent health care industry players, are progressing through committee votes and debates steadily towards the governor’s desk.
The significant measures include preventing automatic reporting of malpractice cases and insurance payouts to the state licensure board and limiting how juries can assess damages. Another bill seeks to uphold the state’s $250,000 cap on non-economic damages in malpractice cases, one of the lowest in the nation, against potential constitutional challenges.
While these proposals significantly modify Montana’s health care oversight and patient recourse system, they have encountered little public testimony outside healthcare and legal circles. Advocates claim the legislation will aid hospitals and providers in managing costly lawsuits and streamline bureaucratic processes.
In a session addressing key issues like property tax reform and Medicaid expansion, these industry-driven malpractice bills have largely avoided public attention. However, bills facilitating lawsuits against doctors providing gender transition-related care to minors, despite public opposition, have stirred controversy.
CLOSING A ROUTE FOR LICENSE COMPLAINTS
The Montana Medical Legal Panel (MMLP) is the initial step for medical malpractice cases, where patients, providers, and insurers appeal to identify possible malpractice or patient injury. Over the last decade, an average of 215 complaints per year were reported, with 18% leading to lawsuits.
House Bill 442, sponsored by Rep. Valerie Moore, R-Plentywood, seeks to remove the requirement for MMLP findings to be shared with the licensing board, aiming to cut redundant oversight. Supported by Commissioner Sarah Swanson, the proposal aims to eliminate unnecessary regulatory burdens.
Nick Dirkes, hospital administrator at Frances Mahon Deaconess Hospital, argued this change would prevent providers from undergoing licensure investigations due to frivolous complaints. Meanwhile, some doctors have expressed concerns about potential delays in the board’s awareness of malpractice actions.
Despite no opposition testimony, the bill easily passed. It was later complemented by House Bill 563, ensuring malpractice settlements don’t prevent licensure complaints, fostering professional accountability.
CHANGES TO ‘THE CAP’ FOR MALPRACTICE DAMAGES
Another key proposal would incrementally raise Montana’s non-economic damages cap from $250,000 to $500,000 by 2029, considering inflation. The cap, criticized for limiting jury awards for emotional pain, remains uncapped for economic damages. House Bill 195, crafted by health care lobbyists, aims to safeguard the cap’s constitutionality.
Broad bipartisan support emerged, with some opposing the cap but agreeing to the proposed increase. Another bill, reacting to a 2023 Montana Supreme Court ruling, would restrict juries in malpractice cases from considering procedural risks, focusing only on expert testimony. Though endorsed by industry lawyers, it faces Senate hearings after passing the House with narrower margins.
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