Indiana Doctors and Hospitals to get Payment Break for Malpractice Fund

Chrissie Cole

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Starting next month, Indiana hospitals and doctors will receive a break on the rates they pay out to support a medical malpractice payout fund. It is unlikely that patient bills will decrease due to the reduction.

On March 1st, Patient's Compensation Fund rates will be reduced by 19 percent for doctors and 1 percent for hospitals, according to the State Department of Insurance.

The fund was first established in 1976 to help compensate malpractice victims. Health care providers add to the fund on a voluntary basis, and many of Indiana's doctors participate.

The fund currently holds $150 million. The amount doctors contribute in an annual payment depends on their specialty. Due to the lower rates doctors who specialize in neurosurgery and obstetrics will see their payments decrease from $33,969 to $27,489 in 2008.