HHS "Early Offers" program aimed at reducing litigation costs

Healthcare Financial Management, Nov, 2004

HHS secretary Tommy Thompson has announced an "Early Offers" pilot program intended to reduce litigation costs by encouraging settlements with patients claiming to have been injured by medical errors. Thompson suggests the program could become a national model for resolving medical liability cases more efficiently.

The voluntary program, which went into effect September 21, applies to claims made against HHS by patients who are treated by employees of federally funded community health centers over seen by HHS's Health Resources and Services Administration or by patients who receive service through Indian Health Service programs. Those who have fried a claim with HHS are permitted to make an offer to settle the case for a specified amount within 90 days after receiving a letter from HHS notifying them their claim has been received and informing them of the program. HHS has the same opportunity to make an offer within the 90 days by stating how much compensation it is willing to provide. Offers are made confidentially to an independent third party, who will compare the offers to determine whether settlement has been achieved.

To read more about the Early Offers pilot program, go to www.dhhs.gov/news/press/2004pres/ 20040921b.html.

To see HFMA's PowerPoint presentation of the Republican and Democrat campaign promises, including proposals for tort reform, go to www.hfma.urg/resource/focus_areas/business_ of_hc/400414.ppt.