Last week, Senator Bill Ratliff significantly revised his substitute for HB 4, the tort reform bill currently before the Texas Legislature, and planned to take public testimony on the bill yesterday and today. Many significant changes were made to the House version, including the distinction drawn between liability caps applicable to hospitals and physicians. With respect to liability limits, HB 4 now differentiates based upon whether the claim is against a hospital, or against a physician or registered nurse. If a claim is brought against a hospital, non-economic damages may not exceed $250,000 for each defendant health care provider. In the event of a unanimous jury verdict, however, the amount of non-economic damages may exceed $250,000. The cap on non-economic damages applicable to physicians and nurses is set at $250,000. If there are multiple physicians or nurses held liable, the cap shall not exceed $750,000. With respect to the provision of charity care services, the limitation on non-economic damages is expanded for physicians and providers, other than a hospital, if the patient acknowledges that the provider is providing care without the expectation of remuneration. For hospitals, the limitation on the provision of charity care services is capped at $500,000 if the patient acknowledges that the hospital is providing care without the expectation of remuneration. Insurance carriers have advised the stakeholders involved in the tort reform debate that the absence of hard caps on non-economic damages will not produce the desired results of reducing liability insurance premiums in the state.

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