As the New York State Legislature seemingly does every year, fighting over the budget has become commonplace. However, with the passage of the budget this year came a provision that has a direct effect upon what medical malpractice lawyers generally refer to as “brain-damaged baby cases.” In an effort to help alleviate hospitals in New York State from paying what they deemed to be exorbitant amounts of money for malpractice premiums for these types of cases, Article 29-D of the Public Health Law (PHL) was amended by adding Title 4, called the “New York State Medical Indemnity Fund.” It reads as follows:

There is hereby created the New York state medical indemnity fund (the fund). The purpose of the fund is to provide a funding source for future health costs associated with birth related neurological injuries, in order to reduce premium costs for medical malpractice coverage.

In its simplest form, the fund mandates that future medical expenses for “birth-related neurological injury” victims be paid by the fund as opposed to being paid by the defendants. The new law provides for the creation of the fund and the financing of it under §2999-(i)(5) of the Public Health Law. The Superintendent of the Fund is required to deposit into it a certain amount of money from the state’s coffers pursuant to a formula set up by the new law. The new article thereafter provides a process for injured victims to apply for and have their future medical bills paid by the fund as the medical expenses are incurred, rather than as a lump sum, up front payment at the time of settlement.

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