By: Nelson S.B. No. 921 73R5008 DLF-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to recovery of damages for medical malpractice. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 6, Civil Practice and Remedies Code, is 1-5 amended by adding Chapter 145 to read as follows: 1-6 CHAPTER 145. MEDICAL MALPRACTICE CLAIMS 1-7 SUBCHAPTER A. GENERAL PROVISIONS 1-8 Sec. 145.001. DEFINITIONS. In this chapter: 1-9 (1) "Claimant" means a party making a medical 1-10 malpractice claim. 1-11 (2) "Collateral source benefit" means a benefit paid 1-12 or payable to or on behalf of a claimant under: 1-13 (A) the Social Security Act (42 U.S.C. 301 et 1-14 seq.); 1-15 (B) a state or federal income replacement, 1-16 disability, workers' compensation, or other law that provides 1-17 partial or full income replacement; 1-18 (C) any insurance policy, including: 1-19 (i) an accident, health, or sickness 1-20 insurance policy; 1-21 (ii) a disability insurance policy; 1-22 (iii) a property or casualty insurance 1-23 policy, including a motor vehicle or homeowners' insurance policy; 1-24 and 2-1 (iv) a life insurance policy; 2-2 (D) an agreement under which a person, including 2-3 a health maintenance organization operating under a certificate of 2-4 authority issued under the Texas Health Maintenance Organization 2-5 Act (Chapter 20A, Vernon's Texas Insurance Code), is obligated to 2-6 provide or pay for medical, hospital, dental, or other health care 2-7 services or similar benefits; or 2-8 (E) a contractual or voluntary wage continuation 2-9 plan, provided by an employer or other person, or any other system 2-10 intended to provide wages during a period of disability. 2-11 (3) "Future damages" means damages that will accrue 2-12 after the judgment is rendered. 2-13 (4) "Health care provider" means any person licensed 2-14 to provide health care as a registered nurse, hospital, dentist, 2-15 podiatrist, pharmacist, or nursing home, or an officer, employee, 2-16 or agent of the licensed person. 2-17 (5) "Medical malpractice claim" means a claim, 2-18 including a counterclaim, cross-claim, or third party claim, 2-19 against a health care provider alleging a negligent act or omission 2-20 in the diagnosis, care, or treatment of a patient and alleging that 2-21 injury to or death of the patient resulted from the act. 2-22 (6) "Past damages" means damages that have accrued at 2-23 the time the judgment is rendered. 2-24 (7) "Respondent" means a party against whom a claimant 2-25 makes a claim. 2-26 Sec. 145.002. SCOPE OF CHAPTER. This chapter applies only 2-27 to a medical malpractice claim, without regard to whether the claim 3-1 is based on tort or contract principles. 3-2 Sec. 145.003. NOTICE OF CLAIM. (a) Not later than the 60th 3-3 day before a medical malpractice claim is filed, the claimant shall 3-4 mail or deliver written notice of the claim to each health care 3-5 provider named in the action. If notice under this subsection is 3-6 mailed, it shall be sent by certified mail, return receipt 3-7 requested. 3-8 (b) At the time the claimant files the claim, the claimant 3-9 shall attach an affidavit stating that the claimant has complied 3-10 with the requirements of this section. The court may require 3-11 additional information to determine whether the requirements of 3-12 this section have been satisfied. 3-13 (c) The claimant must file the action not later than the 3-14 later of: 3-15 (1) the date the applicable statute of limitations 3-16 expires; or 3-17 (2) the 75th day after the date on which the notice is 3-18 mailed or delivered under this section. 3-19 (d) The extension of the time to file the action under 3-20 Subsection (c)(2) applies to any party or potential party to the 3-21 action. 3-22 Sec. 145.004. PLEADING NOT TO STATE DAMAGE AMOUNT; SPECIAL 3-23 EXCEPTION. (a) A medical malpractice claim may not specify an 3-24 amount of money claimed as damages. 3-25 (b) The respondent may file a special exception to the claim 3-26 asserting the action is not within the court's jurisdiction. If a 3-27 special exception under this subsection is filed, the claimant 4-1 shall inform the court and the defendant in writing of the total 4-2 amount of money claimed as damages. 4-3 (c) This section does not prevent a party from mentioning 4-4 the amount of money claimed as damages in examining prospective 4-5 jurors on voir dire or in argument to the court or the jury. 4-6 SUBCHAPTER B. DAMAGES FINDINGS 4-7 Sec. 145.021. SPECIAL DAMAGES FINDINGS REQUIRED. If a trier 4-8 of fact awards damages in an action subject to this chapter, the 4-9 trier of fact shall make separate findings for each claimant 4-10 specifying: 4-11 (1) the amount of past damages for: 4-12 (A) medical and other health care costs; 4-13 (B) lost earnings; 4-14 (C) economic loss other than the costs of 4-15 medical or other health care and lost earnings; and 4-16 (D) noneconomic loss; and 4-17 (2) the amount of future damages for: 4-18 (A) medical and other health care costs; 4-19 (B) loss of earning capacity; 4-20 (C) economic loss other than the costs of 4-21 medical or other health care and loss of earning capacity; and 4-22 (D) noneconomic loss. 4-23 SUBCHAPTER C. REDUCTION IN AWARD FOR COLLATERAL SOURCE BENEFITS 4-24 Sec. 145.031. REDUCTION IN AWARD OF DAMAGES. After a 4-25 judgment has been rendered in a medical malpractice claim, the 4-26 court shall: 4-27 (1) reduce the amount of any award of damages for 5-1 economic loss by the total amount of collateral source benefits 5-2 paid or payable to the claimant to compensate the claimant for the 5-3 injury or death; and 5-4 (2) increase the amount of the award by any premium 5-5 paid or payable by the claimant to secure the right to the 5-6 collateral source benefit. 5-7 Sec. 145.032. EVIDENCE. (a) After the judgment has been 5-8 rendered, the court may hear testimony and receive other evidence 5-9 as to the amount of collateral source benefits paid to the claimant 5-10 and the amount of premium paid or payable by the claimant. 5-11 (b) This subchapter does not authorize the introduction of 5-12 evidence relating to the existence or amount of collateral source 5-13 benefits before a judgment has been rendered in an action. 5-14 Sec. 145.033. RIGHT OF SUBROGATION NOT CREATED. This 5-15 subchapter does not entitle a person providing a collateral source 5-16 benefit to a claimant to recover the amount of the benefit from a 5-17 respondent in an action subject to this chapter. 5-18 SUBCHAPTER D. PAYMENT FOR FUTURE LOSSES 5-19 Sec. 145.041. SCOPE OF SUBCHAPTER. This subchapter applies 5-20 only if the total award of future damages in an action subject to 5-21 this chapter against all respondents exceeds $100,000. 5-22 Sec. 145.042. PERIODIC PAYMENT. (a) The court shall order 5-23 future damages awarded in a medical malpractice claim to be paid in 5-24 periodic installments, in the amounts, and over the period of time 5-25 determined by the judge. 5-26 (b) The total amount paid may not exceed the amount of the 5-27 award for future damages specified in the findings of the trier of 6-1 fact, as reduced under Subchapter C. 6-2 (c) Payments for future damages for medical and other health 6-3 care costs, for economic loss other than the costs of medical or 6-4 other health care and loss of earning capacity, and for noneconomic 6-5 loss terminate on the death of the claimant. 6-6 (d) The total amount of payments for future damages for loss 6-7 of earning capacity owed but not yet paid to the claimant at the 6-8 time of the claimant's death shall be paid to the estate of the 6-9 claimant in a lump-sum amount based on the present discounted value 6-10 of the total as determined by a court. 6-11 SECTION 2. This Act takes effect September 1, 1993, and 6-12 applies only to a cause of action that accrues on or after that 6-13 date. An action that accrued before the effective date of this Act 6-14 is governed by the law in effect at the time the action accrued, 6-15 and that law is continued in effect for that purpose. 6-16 SECTION 3. The importance of this legislation and the 6-17 crowded condition of the calendars in both houses create an 6-18 emergency and an imperative public necessity that the 6-19 constitutional rule requiring bills to be read on three several 6-20 days in each house be suspended, and this rule is hereby suspended.