FISCAL NOTE
Date Requested: March 08, 2017
Time Requested: 01:23 PM |
| Agency: |
Medicine, WV Board of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2981 |
Introduced |
SB560 |
|
|---|
| CBD Subject: |
Actions, Suits and Liens |
|---|
|
FUND(S):
9070
Sources of Revenue:
Special Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This proposed process would have a significant impact on the Board of Medicine's Annual Budget. I estimate an overall effect of $365,000 annually. Based upon information from the Insurance Commissioner's annual report from 2015 there were 570 cases, pre-suits, settlements and judgments related to medical malpractice. I have based my financial estimates on this number. I realize that perhaps not all would be referred, but all would be eligible to.
Based upon the number of potential cases the Board of Medicine would need to hire staff, clerical support staff, administrative support staff, secure office space and equipment, and provide a conference room for the many cases that would be involved.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
365,000 |
361,000 |
| Personal Services |
0 |
301,000 |
301,000 |
| Current Expenses |
0 |
60,000 |
60,000 |
| Repairs and Alterations |
0 |
4,000 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Estimated expenses and related amounts are listed below:
1. Para-legal to support the program – 51k (incudes state
benefits)
2. Office Assistant 1-42k (includes state benefits)
3. Executive Director to provide supervision for staff at 2 hours per case- 57k
4. Executive Director secure panel participants, and chair of panel at 4 hours per case-114k
5. Financial Officer support to manage per diems, contracts, vendors, reimbursements at 3 hours per case. - 37k
6. Office space rental for staff and review hearings 60k
7. Office equipment and furnishings for staff- 4k
Total = $365,000
Memorandum
Respectfully, it doesn’t appear that the legislation addresses the question of billing and payment/ non-payment. I therefore haven’t included any estimate of such as it is unknowable at this time. The proposed legislation caps the chairman's payment at 2k per case. A very conservative estimate by the Board of Medicine's legal staff indicates that med-mal discovery and review of records would take approximately 20 hours per case. That would be an average of 100 dollars an hour for an attorney to chair a case. In today's market, it would be unlikely that we could find competent attorneys to serve in this capacity for this reimbursement amount. Additionally, the reimbursement amount for the panelists would make it very difficult to find participants willing to serve.
Person submitting Fiscal Note: Mark A. Spangler
Email Address: mark.a.spangler@wv.gov