Governor Doyle is at it again. The Governor’s proposed state budget raids the Patient Compensation Fund of $175-million. The Governor attempted a similar raid of $180-million in the 2005-07 state budget. The Legislative Audit Bureau says the fund “insures participating physicians and other health care providers in Wisconsin against medical malpractice claims that exceed the coverage limits of their primary malpractice insurance.”
In a report issued today, the Legislative Audit Bureau says, “The Governor’s 2007-09 Biennial Budget Proposal includes a one-time transfer of $175.0 million from the Fund to a newly created heath care quality fund. This new fund would support a variety of health care quality improvement activities, including the Governor’s E-Health initiative. However, we caution that such a transfer would place the Fund in a deficit accounting position and may result in future increases in provider assessment rates. The Legislature will also need to evaluate whether the proposed uses of the transfer meet the purposes and uses of the Fund set forth in s. 655.27(6), Wis. Stats., which states that the Fund is “held in irrevocable trust for the sole benefit of health care providers participating in the fund and proper claimants.”
I voted against the Governor’s proposed raid of $180-million from the fund in May 2005 as a member of the Joint Finance Committee. I argued such a transfer would be fiscally unwise. The vote by the committee to reject the transfer was 14-2. You can hear my comments during the May 2005 Joint Finance Committee meeting
here.The Governor should not be allowed to raid the Patient Compensation Fund. The fund has contributed to quality health care in Wisconsin, is responsible for a healthy relationship between the business community and physicians, and has been instrumental in preventing Wisconsin from becoming a state in medical malpractice crisis and a state with even higher health care costs.
Here is the Legislative Audit Bureau’s report.
