State Senator Jeff Reichman (R-Montrose) told his fellows senators last week that malpractice judgments were a contributing factor to the closing of Keokuk’s hospital and are a burden to most Iowa medical facilities.

Reichman was speaking in defense of the bill capping non-economic damages awards at $2 million when a hospital is involved and $1 million for malpractice by an independent clinic. Starting in 2028, the caps would increase by 2.1% each year.

The bill was passed by both the House and Senate and is expected to be signed by Gov. Kim Reynolds soon.

“Medical malpractice is the top legislative priority for every hospital in this state,” Reichman said during his speech onto Senate floor.

He said emergency care comes down to “the golden hour.” He said the closing of Keokuk’s hospital puts emergency care 15 minutes away, to Fort Madison, and if that hospital were to close, Keokuk area residents would be 45 minutes away from care (Burlington).

And he said that in 2019 the Fort Madison hospital had a jury award a $14 million settlement.

“No wrong doing, just a baby was born with a birth defect, a $14 million dollar settlement” he said. “They said they couldn’t take another one of those.”

He said the same organization owns not only the Fort Madison and Burlington hospitals, but three hospitals in the area, and if they were to close the next nearest facility could be in Iowa City.

“That is well outside the golden hour for my constituents.”

Under the bill, economic damages and punitive damages would remain unlimited. The bill would change the current law that sends 75% of punitive damages to a state fund and instead allow plaintiffs to keep 100% of punitive damages.

It alo creates a task force to make recommendations for reducing medical error rates.

Some lawmakers, including Governor Reynolds, argue the new legislation will help the state recruit medical professionals to the state.

“To the OBGYNs and physicians who have been worried about practicing in Iowa, we are ready for you!” she said. “These reforms balance the needs of injured patients with the needs of all Iowans to have a robust health care system,” Reynolds said in a statement following the bill’s passage.

Reichman said he and other state lawmakers have been working on a bill for rural emergency hospitals and when that bill was in subcommittee he learned another 12 hospitals are in dire financial situations.

In conclusion, Reichman said “What we have to decide today is are we going to have lottery-sized settlements or, when our constituents arrive and need that hospital, that it’s going to be there for them.“