South Philadelphia Feels the Effect of Medical Malpractice Premium Increases

A dramatic increase in the cost of medical malpractice insurance premiums in the Philadelphia region has forced the Methodist Hospital Division of Thomas Jefferson University Hospital to discontinue delivering babies effective June 30. The move marks the end of a practice that dates back to the South Philadelphia institution’s founding in 1892.

“This is what the exorbitant rise in malpractice insurance costs looks like in human terms,” said Methodist Chief Administrative Officer James E. Robinson, who explained that his hospital is facing a near doubling in premiums for the coming fiscal year. “This move will reduce a portion of the high premium from the hospital’s budget and help us preserve Methodist Hospital’s ability to continue to serve the health-care needs of our South Philadelphia community,” said Robinson. Obstetricians regionwide are faced with unusually high malpractice premium increases.

“We will continue to provide full prenatal care but the actual deliveries will take place some 20 blocks north as we consolidate this obstetrical service at Thomas Jefferson University Hospital,” said Robinson. This action will result in the elimination of 91 full and part-time positions. Methodist has committed to making every effort to reassign affected employees either at Methodist or at other Jefferson Health System hospitals.

Published: 4-24-2002

Media Only Contact:
Nan Myers
Thomas Jefferson University Hospital
Phone: 215/955-6300