Department of Health and Human Services
HHS Logo Bottom
HHS Yellow Bar

News Release

FOR IMMEDIATE RELEASE
Tuesday, Sept. 21, 2004

HHS Press Office
(202) 690-6343

Thompson Launches "Early Offers" Pilot Program to Speed Compensation to Injured Patients, Help Reduce Medical Costs

HHS Secretary Tommy G. Thompson announced an "Early Offers" pilot program aimed at encouraging settlements of patients claiming to have been injured by medical mistakes and controlling health care costs by providing fair and prompt compensation without time-consuming and expensive litigation.

Secretary Thompson said the program is another way to combat the medical liability crisis that is contributing to the rising cost of health care and driving doctors out of their practices. The Secretary said the initiative could serve as a national model for resolving medical liability cases in a more efficient manner.

"President Bush is committed to making health care more affordable for all Americans" Secretary Thompson said, appearing in Manchester, N.H., with Treasury Secretary John Snow. "We need to bring common sense into cases of medical liability so that we're not denying patients access to health care because doctors can't afford to practice medicine. President Bush has a bold initiative to reform medical liability so it truly serves the patient without harming the health care system. And our early offers program could become a national model for resolving medical disputes fairly and effectively.

"Excessive litigation and jury awards have led to increased premiums and higher health care costs for all and made it more difficult for patients to get care. No patient has ever been healed by a lawsuit."

The early offers pilot program, which goes into effect today, applies to claims made against the Department of Health and Human Services by patients who are treated by employees of federally funded community health centers overseen by HHS' Health Resources and Services Administration or by patients who receive service through Indian Health Service (IHS) programs. Participation by any injured patient is voluntary.

A person who has filed a claim with the HHS is 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 confidently with an independent third party who will compare the offers to determine if settlement has been achieved.

To encourage the parties to make offers, neither the injured patient nor the department will know if the other has filed an offer with the independent third party. If both do file offers, and the amount the department offers to pay is greater than or equal to the amount the injured patient is willing to accept, the third party will inform the parties that a settlement has been reached in the amount the claimant requested.

"The department is making this program available so that patients who bring claims for injuries caused by negligence can be compensated fairly, in a timely manner, and without having to go to court," Secretary Thompson said. "This is an important step in reforming our medical liability system and we hope that other providers of care will implement a plan like early offers to encourage quick and fair settlements of claims for more patients."

###


Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last Revised: September 21, 2004

HHS Home | Questions? | Contact HHS | Site Map | Accessibility | Privacy Policy | Freedom of Information Act | Disclaimers

The White House | FirstGov