Act 817 of the 1975 legislature created the Patient’s Compensation Fund (PCF). This Act, modeled after legislation enacted in the state of Indiana, was pushed through the legislature by Dr. John Cooksey of Monroe. Dr. Cooksey, who practices ophthalmology in Monroe, is often referred to as the father of the Louisiana Medical Malpractice Act of 1975. Healthcare providers who participate in the Fund limit their liability from malpractice to the first $500,000 of a malpractice claim. Physicians are responsible for the first $100,000 of the cap and the insurer pays the cost of the claim beyond the first $100,000. There is no limitation, however, on future medical payments.

 

The rate change being requested for all healthcare providers enrolled in the LPCF is an overall increase of 2.8 percent. The rate change requested for hospital, nursing homes, surgical centers, dialysis centers and blood banks is an increase of 5 percent. The rate change requested for physicians and other classes of health care providers is an increase of 2 percent. This represents an estimated increase of approximately $4,800,000 in revenue for 2010. This increase is necessary to ensure that the PCF continues to appropriately address the unfunded accrued liability. The requested increase is expected to result in an estimated overall deficit reduction load of 17.7 percent or about $31,400,000 for 2010. 
The estimated unfunded liability as of Jan. 1, 2009, was $418,090,000. This amount does not take into account the 5 percent rate increase in 2009 and the additional funds that will be collected specifically to address the unfunded liability. It is expected the added load in 2009 will amount to about $30,000,000 which will go toward the unfunded liability. While there is still a significant unfunded liability, the PCF Oversight Board takes its responsibility seriously and will continue to make progress toward eliminating the UAL. The results of this commitment are clearly shown by the growth of the PCF's funds from $70 million in 1997 to over $560 million today.