Gov. George Pataki is considering a possible compromise on tort reform involving limits on damage awards in return for expansion of New York's wrongful death statute.
He told a breakfast forum sponsored by Crain's New York Business on Friday that he plans to create a task force of interested parties, including business leaders and trial lawyers, to hammer out a proposal.
The governor also defended Robert Boyle, executive director of the Port Authority of New York & New Jersey, against charges that he misused his position as chairman of a hospital. And he said he would propose renewal of the state's Health Care Reform Act, although he might recommend changes in the law's $2 billion in surcharges.
``There are legitimate areas where we need to push for tort reform,'' the governor said. ``On the other hand, I also think that our wrongful death law is inappropriate and outdated.''
The state's business community, in alliance with professional groups and local governments, has fought the trial lawyers and consumer advocates to a draw in Albany in recent years over efforts to change the ground rules for liability awards in the state courts.
Business interests, which say that huge damage awards hurt the state's economic climate, have lobbied for limits on noneconomic damages and lawyers' contingency fees. Meanwhile, the trial lawyers have pushed to allow relatives of accident victims to sue for emotional loss, not just economic loss, as is now the case under the state's wrongful death law.
Advocates of tort reform hailed the governor's statement, saying they could accept expansion of the wrongful death law if it were linked to damage caps.
Wrongful death compromise
``We understand that looking at questions like wrongful death is going to have to happen,'' says Mark Alessi, state director of the National Federation of Independent Business. ``We're not opposed if it's part of a comprehensive package of reforms that puts caps on noneconomic damages across the board.''
It wasn't clear on Friday how broadly the governor would apply limits on damage awards, though he specifically endorsed caps in medical malpractice cases.
``When you have medical professionals who make a mistake and run the risk of judgments of $10 million to $15 million that will take everything they've earned for a lifetime -- I've always supported caps on pain and suffering for medical malpractice cases,'' Mr. Pataki said.
The governor said his task force would be modeled on the process he used to reform the workers' compensation system in 1996. In fact, those changes, which reduced costs by more than 25%, were ultimately passed in an end-of-session compromise with Assembly Democrats over objections from the trial lawyers.
On other topics, Mr. Pataki defended his close friend Robert Boyle in the wake of accusations that Mr. Boyle owned a stake in a Westchester building that was sold to a hospital where he served as chairman.
The governor said that under Mr. Boyle, Hudson Valley Hospital Center had become one of the most highly rated health care facilities in the country. ``I was on that board, and that was a failing hospital,'' Mr. Pataki said. ``Bob Boyle became chairman and turned it around to the point where it is the standard, and it is delivering a high quality of care.''
Some Democrats, led by state Democratic Chair Judith Hope, have called for Mr. Boyle's resignation in the wake of the charges.
Asked about health care, Mr. Pataki said he would propose changes in the Health Care Reform Act, which expires this year, though he declined to be specific. The governor has so far stayed clear of a raging battle between business leaders and the health care community over hospital funding.
``We will continue the Health Care Reform Act in a major way,'' he said. ``The specifics we'll have to work out, and at this point, I'm not prepared to tell you exactly what we will recommend. But we will be looking for some modifications.''
Medicaid cuts
Mr. Pataki also defended his proposed $800 million in Medicaid budget cuts, which have been attacked in tough television and radio ads sponsored by health care worker unions and others. He said that even after the cuts, New York would spend more per capita on Medicaid than any other state.
``On Medicaid spending, the national average is $599,'' he said. ``In my proposed budget, New York state will spend $1,352 per person -- the highest total of any state in America by far. No one even comes close.''
