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Huge Insurance Increases Cause Cutbacks in Hospital Services

Martin O'Donnell pointed out that The New York Times reported that hospitals in certain parts of the United States are cutting back on the availability of services due to dramatic increases in malpractice insurance. Among the details that are included about the New York and Philadelphia areas (all essentially quotes from the article):

  • Mercy Hospital in West Philadelphia closed its maternity ward on Friday,
  • the biggest hospitals {in NYC} have kept their insurance prices down by creating their own nonprofit insurance companies,
  • the New Jersey Hospital Association says insurance costs in the state have nearly doubled in the last year,
  • the cost of malpractice insurance at {the Jefferson Health System}... doubled this year, to $32 million, and
  • Brandywine Hospital closed its trauma center and Paoli Hospital closed its paramedic unit {in June}.

Many people who live in this area still haven't realized the impact that malpractice insurance increases are having on the delivery of healthcare. And, they probably won't realize it until they need care that's more complicated than a checkup.

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