Troubled New York Hospitals Forgo Coverage for Malpractice

By ANEMONA HARTOCOLLIS Published: July 15, 2012 264 Comments

Every hospital makes mistakes. But some New York City hospitals may not have enough money to pay for them.

Several of the city’s most troubled hospitals are partially or completely uninsured for malpractice, state records show, forgoing what is considered a standard safeguard across the country.

Some have saved money to cover their liabilities, but others have used up their malpractice reserves, meaning that any future awards or settlements could come at the expense of patients’ care, and one hospital has closed its obstetric practice, in part out of fear of lawsuits.

Troubled New York Hospitals Forgo Coverage for Malpractice