Frivolous Lawsuits/Medicare Imparity Affect Health Industry

By David García

A major crisis is currently unfolding with Puerto Rico’s hospital and health care industry. High risk specialists continue to leave the island, citing the high operating cost and the fact that Puerto Rico has become unusually lawsuit happy. In a recent (August 2006) interview with Puerto Rico Hospital Association President Alfredo ‘Freddy’ Volckers, he brought Business Puerto Rico magazine up-to-date on the current crisis:

“There are currently 500 malpractice lawsuits filed per year in Puerto Rico*. Of these lawsuits, 98 percent are ultimately thrown out of court. In 2004, the dollar amount of these malpractice lawsuits totaled $2 billion. In 1991, it was $500 million. At the same time, fewer private hospitals are carrying insurance. A $300,000 per incident policy, valid for about 7 to 8 years, costs the hospital about $250,000 per year,” said Volckers.

FOTO CAPTION:

Puerto Rico Hospital Association President Alfredo Volckers

Read the entire story at Business Puerto Rico magazine.