Personal Injury Law

Hundreds of Medical Malpractice Lawsuits Threaten to Close New York Hospital

By Michael

Injured plaintiffs have many concerns when seeking legal relief for personal injuries. But rarely do they worry about the defense’s continued existence.

However, more than 260 people face this exact problem in New York, where the shuttering of St. Vincent?s Hospital could jeopardize hundreds of ongoing medical malpractice lawsuits against the hospital, according to the New York Daily News.

St. Vincent?s, the last remaining Catholic hospital in New York, was recently forced to close its doors under the weight of debts reportedly topping $1 billion.

In response to its crippling debt, the hospital recently filed for bankruptcy. During the bankruptcy process, the hospital will likely pay its creditors first, possibly leaving injured patients in the lurch.

Perhaps most frustrated are the former patients who have won personal injury judgments in court against St. Vincent?s, but may never see a dime from the hospital.

One such case is that of of Shenika Baab, who won a $5.3 million jury verdict after a defective defibrillator failed to stop her mother?s heart attack. Baab?s mother had been treated at a sister hospital of St. Vincent?s, Mary Immaculate Hospital in Brooklyn, which closed last year.

Due to the hospital system?s financial troubles, the Baab family has yet to receive any money, causing financial hardship for Shenika Baab, who was left to care for her seven siblings after her mother?s untimely death. Sources indicate that Baab may never see a dime.

Reports say that St. Vincent?s Hospital was mostly self-insured against medical malpractice lawsuits. The hospital had created a special trust fund to protect against future lawsuits.

Many of the claims currently in progress are in the pre-trial or trial stages. The fate of these malpractice claims depends in part on the amount of money this trust fund holds, which is a point of contention among interested parties.

Some reports allege that the fund contains between $150 and $250 million, though many believe that this money spent paying off creditors first, before going to settle any lawsuits.

However, Richard Kanowitz, an attorney for a firm representing six pending medical malpractice cases against the hospital, claimed these trust fund estimates were ?woefully low.? Further, Kanowitz alleged that ?there are a lot of serious injuries and deaths that will go unremedied.?

A hospital spokesman did say that St. Vincent?s has some third-party insurance separate from its trust fund, but did not give a firm number on the amount of insurance available.

Some litigants expressed hope that the sale of the hospital?s land will garner enough cash to provide some money for injured patients.

While uncertainty reigns among the pending medical malpractice lawsuits against St. Vincent?s Hospital, one thing is certain: these patients never anticipated that the hospital would become immune to lawsuits. Even the savviest attorneys cannot win cases against a foe that no longer exist.

Full post as published by The Injury Blog on June 08, 2010 (boomark / email).