Large LBJ lawsuits prompt lawmakers to action by Fili Sagapolutele Samoa News Correspondent LBJ Medical Center will be held responsible to pay judgments and settle claims incurred in its operations, if a bill sponsored by Sen. Tuaolo M. Fruean is enacted into law. Introduced in the Senate last Thursday, the bill is assigned to the Senate Budget and Appropriations Committee, chaired by Sen. Liufau Sonoma who has called a hearing tomorrow (Mar. 18) at 9 a.m. Witnesses scheduled to testify are representatives from the Treasury Department, Budget Office and the Attorney General's Office. The witness list does not include anyone from LBJ. The bill would exempt LBJ from using the Claims and Damage Fund, administered by the Attorney General's Office to pay for judgments and claims filed against hospital operations. The measure comes at a time when senators have voiced their concerns over the many lawsuits against LBJ, in which the Claims and Damage Fund has been used as a funding source. This account has an annual appropriation of $200,000 and many of the settlements of more than $25,000 (which requires legislative approval) have depleted this account. LBJ's chief executive officer Patricia Tindall has not yet replied to questions e-mailed to her last Thursday seeking comments. However, LBJ's general counsel Terry Lovelace, who is attending a hospital-law conference off-island, said via e-mail that LBJ "has zero funds allocated for payment of judgments and settlements". The bill does not provide any funding mechanism plan and Lovelace said if there is no funding plan, to simply shift the liability over to LBJ without providing a plan to generate the necessary revenue, would be a "disaster". "There would be no money left for health care costs; lawyers could obtain judgments against LBJ hospital instead of the Government of American Samoa," said Lovelace responding to Samoa News inquiries. "They could seize property to enforce judgments, seize all funds from our off-Island referral program and take the entire balance in our bank accounts used to pay utility bills, payroll, creditors, etc." Lovelace said he doubts that the Center for Medicaid and Medicare (CMS) and the Interior Department would be pleased to learn that money allocated for health care is being used to pay-off local plaintiff's lawyers. He asked if ASPA, a semi autonomous agency, has a similar fund. "I asked the ASPA question because I know their budget has a fund appropriated to settle claims. LBJ does not," he said. "I have no problem with the hospital paying its own debts incurred through negligence or accidents. I only ask that LBJ be treated the same as ASPA," he said. "Don't dump all this financial responsibility on us without helping us set up a system to handle the problem." "Currently, ASG supplies only 1.8% of LBJ's budget. That's $541,000 out of our total budget of $30,514,000 ($30.5 million). Let's be clear, 98.2% of our budget comes from the federal government and LBJ generated revenue," he said. "I bet that the federal government would desire proportionate control over how LBJ spends its money." "In the past, ASG has hired unqualified and inexperienced administration. If ASG thinks it can step in now and solve 15 years of problems by micro management or punitive actions, I doubt the wisdom of such a policy," he noted. Lovelace said he would like to see ASG, LBJ hospital, the Center for Medicaid and Medicare and the U.S. Department of Interior all work together "for the benefit of the people without petty bickering over who controls what". "The best way to cut liability and wasted money paying lawsuits is to 'raise the bar' and provide the quality health care the people of American Samoa deserve," he said. Lovelace also said that he likes the idea of holding individual physician's somehow accountable to the people of American Samoa. During hearings in the Fono last year, some lawmakers suggested, and former LBJ board chairman Charles Warren agreed, that physicians' whose names are cited in a lawsuit should share in any monetary judgment. It was also suggested at the time that doctors obtain malpractice insurance so LBJ is protected. Reach the reporter at fili@samoanews.com. © Osini Faleatasi Inc. dba Samoa News reserves all rights.