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Insurance is intended to protect an individual or entity in the event of an unexpected liability or loss. Indirectly it protects victims of negligence. In some states, there are laws making insurance mandatory for homeowners, businesses, or automobile drivers.
It is shocking to discover that some hospitals do not carry insurance. When a hospital fails to carry insurance, even one medical malpractice claim or loss can result in severe losses, or even bankruptcy.
Can you believe some hospitals don’t carry insurance?
The Norman Regional Health System, including the Moore Medical Center and Comanche County Memorial Hospital, are known for their failure to carry insurance. These hospitals have nearly 3000 employees, spend millions on advertising and still do not carry insurance to protect the hospital, employees, or the patients in the event of an accident.
How can hospitals get away without paying insurance?
These hospitals try to avoid carrying insurance because they claim to have government status. They assert that under the Oklahoma Governmental Tort Claims Act, their liability is limited to $125,000 regardless of what they have done. This amount has not been raised in more than 20 years.
What does “no-insurance” mean for patients?
This cap on recovery — if valid — can be devastating for patients. Simply put, if you or someone you love suffers a serious injury caused by negligence or medical malpractice, such as a birth injury, surgical injury, or emergency room injury, your damages could be limited to $125,000. Even a wrongful death case that may be otherwise compensated by millions of dollars would be limited to $125,000.
By claiming government status, Norman Regional Health System unfairly competes with other hospitals by not buying malpractice insurance. This creates an unfair advantage for hospitals do not have to invest in malpractice insurance. If you are interested in learning more about this legislation or contacting a representative, please visit The Oklahoma Legislature home page.