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recent developments in pennsylvania medical malpractice law

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5. Advance paymentsUnder § 1303.507, effective to cases pend<strong>in</strong>g as of May 19, 2002, a carrier may advance apayment to a pla<strong>in</strong>tiff without hat be<strong>in</strong>g admissible <strong>in</strong> court or considered an admission of liability.6. Collateral source rulePla<strong>in</strong>tiffs may no longer recover damages for past <strong>medical</strong> expenses or lost earn<strong>in</strong>gs to theextent the loss was paid by public or private <strong>in</strong>surance prior to the trial. § 1303.508, effective only tocauses of action aris<strong>in</strong>g on or after March 20, 2002. However, the total amount of <strong>medical</strong> expensesmay be <strong>in</strong>troduced to the jury, which must be the amount actually paid by <strong>in</strong>surance or directly underprior case <strong>law</strong>. First party <strong>in</strong>surance carriers have no right of subrogation or reimbursement from thepla<strong>in</strong>tiff’s tort recovery. Collateral source benefits do not <strong>in</strong>clude life <strong>in</strong>surance benefits, pension orprofit shar<strong>in</strong>g payments, deferred compensation payments, Social Security benefits, Medicaid andMedicare payments and public benefits under an ERISA program.7. Calculation of damagesThere are a number of provisions regard<strong>in</strong>g calculation of damages <strong>in</strong> § 1303.509, effective onlyto causes of action aris<strong>in</strong>g on or after March 20, 2002. there must be separate f<strong>in</strong>d<strong>in</strong>gs for past<strong>medical</strong> related expenses, past loss of earn<strong>in</strong>gs and past non-economic loss, future <strong>medical</strong> and relatedexpenses, loss of future earn<strong>in</strong>gs and earn<strong>in</strong>g capacity and future non-economic loss. Future <strong>medical</strong>expenses will be paid quarterly based upon present value with adjustments for <strong>in</strong>flation and lifeexpectancy. Periodic payments will term<strong>in</strong>ate upon the death of pla<strong>in</strong>tiff.Loss of future earn<strong>in</strong>gs and earn<strong>in</strong>g capacity and non-economic losses will be assessed <strong>in</strong> a lumpsum to be paid at the time of judgment. Under § 133.510, effective only to causes of action aris<strong>in</strong>gon or afer March 20, 2002, future damages for loss of earn<strong>in</strong>gs or earn<strong>in</strong>g capacity shall be reducedto present value but pla<strong>in</strong>tiff may <strong>in</strong>troduce the effect of productivity and <strong>in</strong>flation over time.However, under 1303.509, each party liable for future <strong>medical</strong> and related expenses shall fundthem by means of annuity contract or other court-approved plan. Interest will not accrue on futurepayments. Future <strong>medical</strong> expenses may be paid by a lump sum if they do not exceed $100,000. Oncethere has been fund<strong>in</strong>g of future <strong>medical</strong> costs by an annuity, the judgment may be discharged, althoughthe court shall reta<strong>in</strong> jurisdiction <strong>in</strong> the event of future disputes.8. Preservation and accuracy of <strong>medical</strong> recordsUnder § 1303.511, effective to cases pend<strong>in</strong>g as of May 19, 2002, the patient’s chart must becreated simultaneously with the render<strong>in</strong>g of treatment or as soon as practically possible. Anysubsequent additions must clearly identify the time and date of their entry. If a provider violates thisprovision, his <strong>medical</strong> license may be suspended or revoked. If a pla<strong>in</strong>tiff can show an <strong>in</strong>tentional-7-

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