Wisconsin Medical Journal
107 #2
107 #2
Society Files Suit
The Wisconsin Medical Society filed suit in Dane County Circuit Court October 29 to challenge the legality of the State of Wisconsin withdrawing $200 million from the Injured Patients and Families Compensation Fund. The Society believes that this action by the Governor and Legislature is both unconstitutional and detrimental to the citizens of Wisconsin. Independent analysis of the Fund’s fiscal status shows that the Fund will become destabilized as soon as this money is taken. The Fund was created to provide funds for injured patients and to stabilize Wisconsin’s medical liability climate. To learn more about the Fund and the lawsuit, click on these links:
Recent web postings on the topic:
contact: Kendi Parvin - 608.442.3748 - kendip@wismed.org
Madison—David Hoffmann, MD, a family physician who practices in Mauston, has joined in the complaint against the State of Wisconsin to overturn the raid on the Injured Patients and Families Compensation Fund (IPFCF).
“We believe the illegal transfer of $200 million from the IPFCF threatens the stability of a program intended for patients and their families,” said Mark Grapentine, JD, the Society’s Senior Vice President of Government Relations. “The unintended consequence of this raid very well may be that it becomes a deterrent to recruiting doctors in small towns across Wisconsin like Mauston.”
Click here to read more...
contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org, or
Ruth Heitz, JD - 608.442.3741 - ruthh@wismed.org
Madison—The Wisconsin Medical Society today filed an amended complaint in its lawsuit challenging the legality of the raid of the Injured Patients and Families Compensation Fund (Fund). A copy of the complaint can be read here.
The Society dismissed State Treasurer Dawn Sass from the lawsuit. Based on the State’s responses to the Society’s interrogatories, it does not appear that Sass was involved in the transfer of money from the Fund. The amended complaint names Michael Morgan, the Secretary of the Department of Administration, as the sole defendant. Secretary Morgan, in his official capacity, directed and supervised the transfer of money from the Fund.
Additionally, Society member David Hoffmann, MD, has joined the lawsuit as an individually named plaintiff. Doctor Hoffmann’s participation in the lawsuit will underscore the potential impact that the State’s raid on the Fund might have on physicians who practice in rural communities. Doctor Hoffmann is a family physician who practices in Mauston.
The amended complaint also includes a new claim under 42 USC sec. 1983. The claim is based on governmental officials depriving Wisconsin physicians of their constitutionally protected rights, such as the right to receive just compensation for property taken by the State and other constitutional rights outlined in the complaint. The amended complaint also includes a claim that the State violated Wis. Stat. sec. 655.27 by transferring money from the Fund without following the statutory requirement of obtaining approval from the Board of Governors.
The State must file an answer to this amended complaint. A telephone scheduling conference with the trial judge to set key dates, such as deadlines for completing discovery and filing motions for summary judgment, is scheduled for April 8, 2008.
If you have questions about the lawsuit, e-mail Ruth Heitz, JD, or Mark Grapentine, JD.
contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Department of Administration has confirmed what the State’s medical professionals most feared. According to today’s Wisconsin State Journal, “An Oct. 29 transfer of $71.5 million from the Patient’s Compensation Fund … left the fund short $46.2 million in cash….”A letter received by the State’s budget committee January 11 from DOA Secretary Michael Morgan indicates that the Fund’s balance was still short $44.5 million as of November 30.
“The Injured Patients and Families Compensation fund was created in 1975 to provide funding for large malpractice claims, thereby making medical liability insurance more readily available and reducing pressure to increase insurance costs,” said Clarence Chou, MD, Wisconsin Medical Society president. “I’m concerned that the State did not think through the consequences of its actions when it illegally took funds intended for victims and their families to be used for other programs.”
Chou adds that the shortfall will likely grow, because a second transfer of $128.5 million from the Fund is slated to occur July 1, 2008 as part of the two-year budget agreement. And because there was not enough cash in the Fund when the initial transfer occurred, the State took money from other State funds and, as a result, has asserted that the Fund will have to pay interest to those other State funds.
The Wisconsin Medical Society has filed suit to overturn the raid on the Fund. “While physicians certainly hope that patients never have to make a claim, the fact is that this Fund was created for the citizens of Wisconsin if they are injured due to a negligent medical act. It would be tragic if funding were not available in the event that patients and their families need it,” Chou added.
Fund payments provide unlimited economic damages by covering medical bills and replacing lost income. It also provides payments for pain and suffering. No taxpayer dollars are in the Fund; instead, most physicians, hospitals and other health care providers are required to pay annual fees.
With more than 11,000 members dedicated to the best interests of their patients, the Wisconsin Medical Society is the largest association of medical doctors in the state and a trusted source for health policy leadership since 1841. Your Doctor. Your Health.
release date: Friday, December 7, 2007
contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Medical Society dismissed the Injured Patients and Families Compensation Board and the Commissioner of Insurance, Sean Dilweg, from its lawsuit challenging the legality of the raid of the Injured Patients and Families Compensation Fund (Fund). When the lawsuit was filed, Commissioner Dilweg and the Fund Board were named as defendants because Wisconsin law mandates that any withdrawal of money by the Commissioner of Insurance be approved and authorized by the Fund Board.
The Society has learned, since filing its lawsuit, that the Department of Administration transferred money from the Fund without the approval or authorization of the Fund Board or the Commissioner of Insurance. Because neither the Fund Board nor the Commissioner were involved in the decision to raid the Fund or the execution of the raid, the Society believes that it is appropriate to dismiss them from the lawsuit at this time.
“It’s disappointing to see that the state took measures to bypass the Fund Board,” said Society President Clarence P. Chou, MD. “After Governor Doyle proposed the raid back in February, the Fund Board unanimously approved a statement opposing the raid. The state’s decision to take extraordinary action by excluding the Board from the process raises, in our minds, some serious concerns about the legality of the process.”
The Society will actively pursue its claims against the state for raiding the Fund, Chou said, as the Society believes the raid is both unconstitutional and detrimental to patients in Wisconsin.
With more than 11,000 members dedicated to the best interests of their patients, the Wisconsin Medical Society is the largest association of medical doctors in the state and a trusted source for health policy leadership since 1841. Your Doctor. Your Health.
contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Medical Society officially filed suit (case no.: 07-CV-4035) this afternoon to remedy what it contends is an illegal taking of $200 million from Wisconsin’s Injured Patients and Families Compensation Fund (IPFCF). The action comes just days after Governor Doyle signed the State Budget on Friday.
“This is just the first step in what may very well be a lengthy process in the courts,” said Tom Pyper, of Whyte Hirschboeck Dudeck, S.C., who is representing the Society. “Judicial timelines are very difficult to predict. The Society is prepared to exhaust every legal option in defending injured patients and families and Society health care providers from what it believes to be an illegal taking.”
“It is with great reluctance that we’ve filed this lawsuit, but the Society is dedicated to protecting patients’ access to health care,” said Society President Clarence Chou, MD. “There is no doubt that during litigation it will be more difficult to recruit and retain high quality physicians when the practice climate in Wisconsin is unstable. But it would have been worse to let the government steal money from a fund that provides support for injured patients and their families.”
Named in the suit are Sean Dilweg, Commissioner of Insurance, Michael Morgan, Secretary of Department of Administration and Dawn Marie Sass, State Treasurer.
The suit asserts eight causes of action, including the seeking of a permanent injunction against transferring money from the Fund “because the Act is unconstitutional or otherwise invalid or unenforceable….” The complaint further states that this transfer of money “constitutes an unlawful tax and is, accordingly, invalid and void….” To read the complaint in its entirety, click here.
Physicians and certain other health professionals are required to pay fees to the IPFCF. The Fund, established in 1975, ensures monies are available to support patients injured due to a negligent medical act. Fund payments cover medical bills, replace lost income and make injured patients economically whole, to the extent possible. No taxpayer dollars are in the Fund. 2003 Act 111 established the Fund as an “irrevocable trust” to make sure the money was there for injured patients and their families.
The Wisconsin Medical Society is the largest association of medical doctors in the state with more than 11,500 members dedicated to the best interests of their patients. The Wisconsin Medical Society has been a trusted source for health policy leadership since 1841.
It's unclear how serious these offers were - many offers and counter-offers are given with the full knowledge that the other side will reject them. However, the Fund should not be a political football.
Call your legislators and let them know that the Fund shouldn't be a part of political game-playing, and should be taken off the table in future budget negotiations. To find out who your legislators are, click here.
If you have any questions, please contact Mark Grapentine.
- Office of the Commissioner of Insurance: Injured Patients and Families Compensation Fund
- Legislative Fiscal Bureau Paper 377
- Legislative Audit Bureau Report
- Complaint, filed October 29, 2007
Recent web postings on the topic:
Mauston doctor joins lawsuit to overturn raid on Injured Patients and Families Compensation Fund
Threat to rural health care looms
release date: Tuesday, March 4, 2008contact: Kendi Parvin - 608.442.3748 - kendip@wismed.org
Madison—David Hoffmann, MD, a family physician who practices in Mauston, has joined in the complaint against the State of Wisconsin to overturn the raid on the Injured Patients and Families Compensation Fund (IPFCF).
“We believe the illegal transfer of $200 million from the IPFCF threatens the stability of a program intended for patients and their families,” said Mark Grapentine, JD, the Society’s Senior Vice President of Government Relations. “The unintended consequence of this raid very well may be that it becomes a deterrent to recruiting doctors in small towns across Wisconsin like Mauston.”
Click here to read more...
Society files amended claim in Fund lawsuit
release date: Friday, February 29, 2008contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org, or
Ruth Heitz, JD - 608.442.3741 - ruthh@wismed.org
Madison—The Wisconsin Medical Society today filed an amended complaint in its lawsuit challenging the legality of the raid of the Injured Patients and Families Compensation Fund (Fund). A copy of the complaint can be read here.
The Society dismissed State Treasurer Dawn Sass from the lawsuit. Based on the State’s responses to the Society’s interrogatories, it does not appear that Sass was involved in the transfer of money from the Fund. The amended complaint names Michael Morgan, the Secretary of the Department of Administration, as the sole defendant. Secretary Morgan, in his official capacity, directed and supervised the transfer of money from the Fund.
Additionally, Society member David Hoffmann, MD, has joined the lawsuit as an individually named plaintiff. Doctor Hoffmann’s participation in the lawsuit will underscore the potential impact that the State’s raid on the Fund might have on physicians who practice in rural communities. Doctor Hoffmann is a family physician who practices in Mauston.
The amended complaint also includes a new claim under 42 USC sec. 1983. The claim is based on governmental officials depriving Wisconsin physicians of their constitutionally protected rights, such as the right to receive just compensation for property taken by the State and other constitutional rights outlined in the complaint. The amended complaint also includes a claim that the State violated Wis. Stat. sec. 655.27 by transferring money from the Fund without following the statutory requirement of obtaining approval from the Board of Governors.
The State must file an answer to this amended complaint. A telephone scheduling conference with the trial judge to set key dates, such as deadlines for completing discovery and filing motions for summary judgment, is scheduled for April 8, 2008.
If you have questions about the lawsuit, e-mail Ruth Heitz, JD, or Mark Grapentine, JD.
State report indicates Fund intended for injured patients is in jeopardy
release date: Friday, January 18, 2008contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Department of Administration has confirmed what the State’s medical professionals most feared. According to today’s Wisconsin State Journal, “An Oct. 29 transfer of $71.5 million from the Patient’s Compensation Fund … left the fund short $46.2 million in cash….”A letter received by the State’s budget committee January 11 from DOA Secretary Michael Morgan indicates that the Fund’s balance was still short $44.5 million as of November 30.
“The Injured Patients and Families Compensation fund was created in 1975 to provide funding for large malpractice claims, thereby making medical liability insurance more readily available and reducing pressure to increase insurance costs,” said Clarence Chou, MD, Wisconsin Medical Society president. “I’m concerned that the State did not think through the consequences of its actions when it illegally took funds intended for victims and their families to be used for other programs.”
Chou adds that the shortfall will likely grow, because a second transfer of $128.5 million from the Fund is slated to occur July 1, 2008 as part of the two-year budget agreement. And because there was not enough cash in the Fund when the initial transfer occurred, the State took money from other State funds and, as a result, has asserted that the Fund will have to pay interest to those other State funds.
The Wisconsin Medical Society has filed suit to overturn the raid on the Fund. “While physicians certainly hope that patients never have to make a claim, the fact is that this Fund was created for the citizens of Wisconsin if they are injured due to a negligent medical act. It would be tragic if funding were not available in the event that patients and their families need it,” Chou added.
Fund payments provide unlimited economic damages by covering medical bills and replacing lost income. It also provides payments for pain and suffering. No taxpayer dollars are in the Fund; instead, most physicians, hospitals and other health care providers are required to pay annual fees.
With more than 11,000 members dedicated to the best interests of their patients, the Wisconsin Medical Society is the largest association of medical doctors in the state and a trusted source for health policy leadership since 1841. Your Doctor. Your Health.
Physicians dismiss the Fund Board from lawsuit
State raided Fund before Board of Governors could act; lawsuit continues
release date: Friday, December 7, 2007
contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Medical Society dismissed the Injured Patients and Families Compensation Board and the Commissioner of Insurance, Sean Dilweg, from its lawsuit challenging the legality of the raid of the Injured Patients and Families Compensation Fund (Fund). When the lawsuit was filed, Commissioner Dilweg and the Fund Board were named as defendants because Wisconsin law mandates that any withdrawal of money by the Commissioner of Insurance be approved and authorized by the Fund Board.
The Society has learned, since filing its lawsuit, that the Department of Administration transferred money from the Fund without the approval or authorization of the Fund Board or the Commissioner of Insurance. Because neither the Fund Board nor the Commissioner were involved in the decision to raid the Fund or the execution of the raid, the Society believes that it is appropriate to dismiss them from the lawsuit at this time.
“It’s disappointing to see that the state took measures to bypass the Fund Board,” said Society President Clarence P. Chou, MD. “After Governor Doyle proposed the raid back in February, the Fund Board unanimously approved a statement opposing the raid. The state’s decision to take extraordinary action by excluding the Board from the process raises, in our minds, some serious concerns about the legality of the process.”
The Society will actively pursue its claims against the state for raiding the Fund, Chou said, as the Society believes the raid is both unconstitutional and detrimental to patients in Wisconsin.
With more than 11,000 members dedicated to the best interests of their patients, the Wisconsin Medical Society is the largest association of medical doctors in the state and a trusted source for health policy leadership since 1841. Your Doctor. Your Health.
Society files suit to stop $200 million raid on fund for injured patients
release date: Monday, October 29, 2007contact: Mark Grapentine, JD - 608.575.2514 - markg@wismed.org
Madison—The Wisconsin Medical Society officially filed suit (case no.: 07-CV-4035) this afternoon to remedy what it contends is an illegal taking of $200 million from Wisconsin’s Injured Patients and Families Compensation Fund (IPFCF). The action comes just days after Governor Doyle signed the State Budget on Friday.
“This is just the first step in what may very well be a lengthy process in the courts,” said Tom Pyper, of Whyte Hirschboeck Dudeck, S.C., who is representing the Society. “Judicial timelines are very difficult to predict. The Society is prepared to exhaust every legal option in defending injured patients and families and Society health care providers from what it believes to be an illegal taking.”
“It is with great reluctance that we’ve filed this lawsuit, but the Society is dedicated to protecting patients’ access to health care,” said Society President Clarence Chou, MD. “There is no doubt that during litigation it will be more difficult to recruit and retain high quality physicians when the practice climate in Wisconsin is unstable. But it would have been worse to let the government steal money from a fund that provides support for injured patients and their families.”
Named in the suit are Sean Dilweg, Commissioner of Insurance, Michael Morgan, Secretary of Department of Administration and Dawn Marie Sass, State Treasurer.
The suit asserts eight causes of action, including the seeking of a permanent injunction against transferring money from the Fund “because the Act is unconstitutional or otherwise invalid or unenforceable….” The complaint further states that this transfer of money “constitutes an unlawful tax and is, accordingly, invalid and void….” To read the complaint in its entirety, click here.
Physicians and certain other health professionals are required to pay fees to the IPFCF. The Fund, established in 1975, ensures monies are available to support patients injured due to a negligent medical act. Fund payments cover medical bills, replace lost income and make injured patients economically whole, to the extent possible. No taxpayer dollars are in the Fund. 2003 Act 111 established the Fund as an “irrevocable trust” to make sure the money was there for injured patients and their families.
The Wisconsin Medical Society is the largest association of medical doctors in the state with more than 11,500 members dedicated to the best interests of their patients. The Wisconsin Medical Society has been a trusted source for health policy leadership since 1841.
Proposed Fund Raid: $300M?
Madison (September 28)--Thursday afternoon there were some troubling rumors coming out of state budget negotiations. According to Capitol news services, Assembly Speaker Mike Huebsch (R-West Salem) is saying that during today's negotiations Senate Democrats offered to take $300 million from the Injured Patients and Families Compensation Fund (Fund) in exchange for reductions in other taxes Senate Democrats have proposed. WisPolitics later reported that Speaker Huebsch had offered a combination of the $1.25 increase in the cigarette tax and an "unspecified amount" from the Fund, which was also rejected.It's unclear how serious these offers were - many offers and counter-offers are given with the full knowledge that the other side will reject them. However, the Fund should not be a political football.
Call your legislators and let them know that the Fund shouldn't be a part of political game-playing, and should be taken off the table in future budget negotiations. To find out who your legislators are, click here.
If you have any questions, please contact Mark Grapentine.
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