Floor Packet Page No. 332                                                   

	
Amend CSHB 4, ARTICLE 10 as follows:                                         
	On page 82, line 3 through page 86, line 13, strike SECTION 
10.28 and substitute a new SECTION 10.28 to read as follows:
	SECTION 10.28.  (a)  The Legislature of the State of Texas 
finds that:       
		(1)  the number of health care liability claims 
(frequency) has increased since 1997 at a rate of 4.6% per year;
		(2)  Medical negligence in Texas is a contributing 
factor affecting medical professional liability rates;
		(3)  the amounts being paid out by insurers in 
judgments, settlements, and defense costs (severity) have 
increased at a rate of 5.9% per year since 1997;
		(4)  some medical negligence insurance carriers have 
raised premiums more than 100%;
		(5)  the situation has created a medical malpractice 
insurance crisis in Texas;
		(6)  this crisis has had a substantial impact on the 
physicians and hospitals of Texas and the cost to physicians and 
hospitals for adequate medical malpractice insurance has 
dramatically risen in price;
		(7)  satisfactory insurance coverage for adequate 
amounts of insurance in this area is often available at an 
unaffordable price; and
		(8)  the adoption of certain modifications in the 
medical, insurance, and legal systems, the total effect of which is 
currently undetermined, will have an unknown effect on the rates 
charged by insurers for medical professional liability insurance.
	(b)  Because of the conditions stated in Subsection (a) of 
this section, it is the purpose of this article to improve and 
modify the system by which health care liability claims are 
determined in order to:
		(1)  reduce excessive frequency and severity of health 
care liability claims through reasonable improvements and 
modifications in the Texas insurance, tort, and medical practice 
systems;
		(2)  decrease the cost of those claims and ensure that 
awards are rationally related to actual damages;
		(3)  make available to physicians, hospitals, and other 
health care providers protection against potential liability 
through the insurance mechanism at reasonably affordable rates;
		(4)  reduce the time required for plaintiffs to obtain 
awards; and          
		(5)  reduce or eliminate the incentive for physicians 
and other health care providers to go without insurance.