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2016 Update on Indiana’s Medical Malpractice Reform Legislation | Indiana Medical Malpractice Attorneys and Wrongful Death Lawyers

2016 Update on Indiana’s Medical Malpractice Reform Legislation | Indiana Medical Malpractice Attorneys and Wrongful Death Lawyers

Indiana 2016 updated Medical Malpractice ActAs lay people, we put our faith in physicians, nurses,  hospital facilities and other medical providers whom we trust to exercise sound professional decisions, provide quality care and abide by “best practice” standards in their field(s) of medicine. Most healthcare professionals meet or exceed the benchmark of quality health care we have come to expect. But when medical experts fail to meet a reasonable standard of care that results in your bodily injury or the death of a family member, you need an experienced Indiana medical malpractice attorney to represent you and your family’s interests in a legal action against a negligent medical practitioner(s ).

History of Indiana’s Medical Malpractice Act

In 1975, to avert an exodus of medical professionals from the state of Indiana, lawmakers enacted the Medical Malpractice Act which would bring stringent reform to civil actions for medical negligence and place caps on liability payouts. Caps for acts of medical negligence had been raised only twice since the initial legislation was enacted 41 years ago. Periodically, lawmakers should revisit the caps imposed by the Malpractice Act and make fair, economic adjustments that reflect inflation and soaring healthcare costs.

The Medical Malpractice Act as Amended in 2016

Call Charlie Ward at 317-639-9501Currently, Indiana has one of the lowest caps in the nation. In 2016, Senator Brent Steele from Bedford, Indiana authored and introduced Senate Bill 28 (SB 28) which would not only increase the caps imposed upon injured persons and the families of persons deceased by an act of medical negligence, but would hasten payments made by the Patient’s Compensation Fund for a court approved settlement or final non-appealable judgment. The Indiana Trial Lawyers Association (ITLA),  one of the most respected lobbies serving the interests of Hoosiers, backed Steele’s bill and worked diligently with lawmakers and healthcare providers alike, to amend and improve on certain aspects of Indiana’s Medical Malpractice Act. Although ITLA does not favor caps on tort claims, the political climate was ripe for all interested parties, including the Indiana Medical Association which represents physicians, to strike a compromise with lawmakers that would benefit individual citizens and continue to attract accomplished physicians and talented healthcare professionals to the state of Indiana.

After SB 28 was heavily amended by both the house and the senate, lawmakers voted unanimously on March 8, 2016, to send the bill to Governor Mike Pence for his signature. Several of the bill’s key changes to Indiana’s Medical Malpractice Act are shown on the right hand column in the chart below. Read SB 28.

Medical Malpractice Act

Prior to

July 1, 2017

 Medical Malpractice Act

Effective July 1, 2017

Liability Caps

Patients can only receive up to $1.25 million in damages from an act of malpractice.

Liability Caps

Effective, July 1, 2017, patients injured or killed by a negligent act of malpractice on or after July 1, 2017, may receive an amount no greater than $1.65 million in damages.

Effective July 1, 2019,  lawmakers have approved an additional raise of $150,000 for patients injured or killed by a negligent act of malpractice on or after July 1, 2019. Patients may receive an amount no greater than $1.8 million in damages.

(PCF) Patient’s Compensation Fund

Physicians and Providers are responsible for the first $250,000 in damages owed to one patient for one act of malpractice, and no more than $750,000 combined annually. The PCF covers the rest of a patient’s damages, which allows patients a guarantee of full compensation by excluding physicians’ insurance plans as a factor in the ability to cover damages awards.

 (PCF) Patient’s Compensation Fund

Effective, July 1, 2017,
Physicians and Providers are responsible for the first $400,000 in damages owed to one patient for one act of malpractice. The PCF is responsible for $1.25 million.

Effective, July 1, 2019,
Physicians and Providers are responsible for the first $500,000 in damages owed to one patient for one act of malpractice. The PCF is responsible for $1.3 million.

Time Limits

The statute of limitations for filing a complaint is two years from the act of malpractice. Children less than six years-old have until their eighth birthday to file a complaint.

Time Limits

No change.

Filing Complaints

Before taking a case to court, patients must file a complaint with the Indiana Department of Insurance, where a three-physician medical review panel reviews the claim. If there is one defendant, two of the three panel members must be from the accused physician’s specialty. The panel gives a non-conclusive, non-binding report, but they can be called as experts if the defendant chooses to take the case to court.

Filing Complaints

No change.

Payment from PCF

Claims for payment from the Patient’s Compensation Fund are paid quarterly

Payment from PCF

Effective July 1, 2017
Claims from the patient’s compensation fund must be paid not later than 60 days after the issuance of a court approved settlement or final non-appealable judgment.


Experienced Indiana Medical Malpractice Lawyers and Nursing Home Negligence Attorneys

Our experienced Indiana medical malpractice lawyers are here to navigate the complexities of the medical malpractice claims process for you and your loved ones. Call Ward & Ward Law Firm today at 317-639-9501 and ask for “Charlie” for a free, no obligation, consultation.

By Charlie Ward
[email protected]

Ward & Ward Law Firm
728 S Meridian St
Indianapolis, IN 46225


Read more about medical malpractice lawyers in Indiana:

Medical Malpractice and Related Injuries

Understanding Indiana’s Medical Malpractice Law



Tort Reform for Acts of Medical Negligence – Is it the Best We Can Do for Injured Parties?

Indiana’s tort reform endeavorsCall Charlie Ward at 317-639-9501

Unless you’ve been harmed by the negligence of a health care provider, you probably aren’t aware that in 1975 Indiana led the nation in tort reform legislation, placing caps on medical negligence claims. The stated aims of Indiana’s tort reform endeavors were two-fold: to keep physicians from fleeing Indiana during the malpractice crisis of the seventies; and to keep healthcare costs to a manageable level.

During the national healthcare debate of 2010, we heard a lot from Washington about “tort reform” as a necessary precursor to reducing health care costs across the nation. However, most states have already enacted their own brands of tort reform. Washington insiders unsuccessfully sought unifying legislation that would wrench the authority from the states and seat it in the lap of federal legislation. Presently, the objective of the American Tort Reform Association is to fight this battle on a state by state basis. Today, most states have some form of tort reform on the books. Indiana Code Annotated § 34-18-14-3 addresses “Recovery Limitations” also known as “caps” for medical negligence claims.

The earliest Indiana legislation stipulated that prior to 1990, the total amount recoverable for an act of medical negligence or the wrongful death of a patient by a medical caregiver may not exceed $500,000. Since 1975, legislators have twice increased the awards. Currently, for claims accruing on or after July 1st, 1999, the total maximum amount awarded to the plaintiff is capped at $1,250,000. On their website, the Indiana State Medical Association clearly states:

“Physicians are only responsible for the first $250,000 in damages to any patient for one act of malpractice and no more than $750,000 in the annual aggregate. Indiana’s Patient’s Compensation Fund (PCF) pays any excess, not to exceed $1 million — for a total of $1.25 million.” [Key Features of Indiana’s Medical Malpractice Act published online by the Indiana State Medical Association.]

In 1975, Frank Cornelius, a successful and influential lobbyist for the Indiana Institute of Insurance, helped secure passage of Indiana’s original medical tort reform law. Fourteen years later, in an ironic twist of fate, Mr. Cornelius suffered a succession of serious and permanently disabling medical acts of negligence brought about by the same medical providers he sought to protect with legislation. His injuries required permanent confinement to a wheelchair and his breathing was only made possible with the aid of a respirator. Just prior to his death, in a letter written to the New York Times on October 7, 1994 he wrote an article entitled “Crushed By My Own Reform.” It states in part:

“Make no mistake, damage caps are arbitrary, wholly disregarding the nature of the injury and the pain experienced by the plaintiff. They make it harder to seek and recover compensation for medical injuries; extend unwarranted special protection to the medical industry; and remove the only effective deterrent to negligent medical care, since the medical profession has never done an effective job of disciplining negligent doctors.” [Read the full text of Mr. Cornelius’ letter here.]

While the constitutionality of capping medical negligence awards and awards for negligent acts resulting  in wrongful death has been challenged based on the Seventh Amendment to the Constitution, the State of Indiana has routinely upheld the authority of Indiana to legislate tort reform.  However, most recently, on October 25, 2011, the Indiana Court of Appeals issued a preliminary opinion in the case of Plank v. Community Hospitals of Indiana, Inc. and State of Indiana stating that Mr. Plank, husband of the deceased, was entitled to an evidentiary hearing on the subject of the constitutionality of the State’s malpractice cap. We’ll keep you informed of this issue if new developments occur.

We are very fortunate to live in a country where opinions can be stated. The national organizations in favor of tort reform are well-funded and voice their opinions with catch phrases that appeal to the headlines. But good decisions by government representatives can only be made when the public is educated on all sides of an issue.

The law firm of Ward & Ward has over eighty five years of legal experience with personal injury and wrongful death claims and continues to seek justice for clients that have been harmed by the negligence of others. Our firm receives no legal fees or expenses unless we collect damages on your behalf. Call Charlie Ward today for a free evaluation of your claim.

Charlie Ward

(317) 639-9501