11/8/2011

Office Closures 

2011 Holiday Schedule

The PCF will be closed on the following dates:

Friday, November 11, 2011 – Veteran’s Day

Friday, November 25, 2011 – Acadian Day

Friday, December 23, 2011 – Christmas Holiday

Monday, December 26, 2011 –Christmas Holiday

Friday, December 30, 2011 – New Year Holiday

Monday, January 2, 2012 – New Year Holiday

9/2/2011

PCF Surcharge Rates Down Slightly for Hospitals and Doctors, Board Re-elects Officers 

The Louisiana Patient’s Compensation Fund (PCF) Oversight Board presented the second consecutive annual decrease in rates for healthcare providers, averaging a decrease of 4.3 percent. The new rates went into effect September. 2, 2011. Hospital rates have decreased 0.9 percent; nursing home combined rates have decreased 12.9 percent; physician rates have decreased an overall 3.7 percent; dentist rates have decreased 14.1 percent; Certified Registered Nurse Anesthetist rates have decreased 21.6 percent, and other advanced practice nurse rates have decreased 4.3 percent. Oral surgeons will see a 3 percent increase, and there will be no change in the rates for the “other” class. Despite the refocusing of the priorities of the fund from aggressively raising rates to lower the unfunded accrued liability (UAL) to providing solid but more affordable coverage, the PCF was still able to pay its claims and administrative costs and put an additional $50 million toward funding the UAL. This was possible because of a better than average claims experience and lower frequency. Rates have declined in the last two years for the first time in the 35-year history of the Medical Malpractice Act.

On Thursday, September 1, 2011,  the PCF Oversight Board elected its new officers. Clark Cossé, LHA chief governmental officer and general counsel, was re-elected to serve as chairman; Dr. Vincent “Van” Culotta, representing physicians, was re-elected vice-chair, and Kent Guidry of Acadian Ambulance, representing the “all other” class of providers, was re-elected secretary. 

RATES - URGENT MESSAGE FROM PCF'S EXECUTIVE DIRECTOR
At the 9/2/2010 PCF Oversight Board meeting, based on the annual actuarial study, the Board voted to reduce rates effective January 1, 2011.  Prior to the October Board meeting, there was a request made to the Board to reconsider the effective date of the rate reduction.  The effective date of the rate change was re-visited during the PCF Oversight Board meeting held on October 6, 2010.  In 2009, the actuary study revealed there was justification for a rate reduction; however, due to pressure from the Department of Insurance for the Board to address the unfunded liability, rates were raised in January 2010.  Since there was an indication that rates could have been reduced in 2010, the Board agreed the rate relief should be afforded to the health care providers at the earliest possible date.  It was felt the earliest date a rate change could be made effective was the date the Board voted on the changes, 9/2/10.

By a unanimous vote, the PCF Oversight Board made the rate reductions/changes previously effective 1/1/2011 will now be effective 9/2/10.  This includes any changes in classifications and requirements.
If the PCF surcharge payment has already been sent to the PCF for renewals that are effective on or after 9/2/10, refunds should be requested. 

The Board also further clarified the surcharge requirements for hospital pharmacists and ambulance services.  Those hospitals that do not allow discharged patients, employees or others to obtain prescription medicines from the hospital owned pharmacy will not be required to pay an additional surcharge for pharmacists that are employed by the hospital.  Any hospital that provides ambulance services, must pay a separate surcharge for that service based on the established PCF surcharge rates for EMTs.  The Board allowed a grace period until 1/1/11 for hospitals and insurers to obtain and report this information.

Any questions regarding these changes should be addressed to me.

Lorraine LeBlanc
Executive Director
Patient's Compensation Fund
P.O.Box 3718
Baton Rouge, LA  70821
8225 Florida Blvd, 3rd Floor, 70806
office: 225-362-5263
Fax:  225-362-5265
www.doa.louisiana.gov/pcf