A budget deal, without malpractice cap

ALBANY -- The budget deal announced Sunday rejected limits on what medical negligence victims can be awarded in court.

Gov. Andrew M. Cuomo's plan to place a cap of $250,000 on "noneconomic damages" -- the award for "pain and suffering" -- fell to objections from the Assembly, controlled by Democrats and Speaker Sheldon Silver, lawmakers said.

However, the deal includes a $30-million fund that indemnifies hospitals against claims involving infants who suffered neurological impairments at birth.

Hospitals estimate they will save $320 million a year. Plaintiffs who win infant malpractice cases would have to apply to the fund for awards.

The malpractice cap and infant fund were two of the most contentious items negotiated in a $52-billion Medicaid budget. Another controversial item -- giving most home care workers a "living wage" -- is included.

The budget deal drew sharp reactions from obstetricians, whom the infant fund won't cover. They say malpractice caps would have lowered their skyrocketing insurance premiums.

"We cannot believe what our state has failed to do to protect the future of maternity care in this state," said Donna Montalto, of the American Congress of Obstetricians and Gynecologists.

Stephen Younger, president of the state Bar Association, said a cap would "have immunized negligent hospitals and doctors from their own negligence."

Hospital groups did not immediately comment.