HHS to award safety, liability grants up to $3 million

The White House announced $25 million in grants for states and health systems that carry out and evaluate evidence-based patient-safety and medical-liability demonstrations, following up on President Barack Obama's nod to malpractice reform in his speech last week to a joint session of Congress.

In a memorandum, Obama directed HHS to make grants available within 30 days for “the development, implementation and evaluation of alternatives to our current medical liability system” consistent with certain “goals and core commitments.”

Crediting the work of the Joint Commission and the Institute of Medicine on the issue, Obama said in the memo that such reform should reduce preventable injuries; improve communication between physicians and patients; ensure patients are compensated for injuries in a fair and timely manner; reduce frivolous lawsuits; and reduce premiums for liability insurance.

Grants of up to $3 million and three years will go to applicants that will implement and evaluate demonstration projects, and one-year grants of up to $300,000 and technical assistance will be awarded to states and organizations that want to plan demonstrations, according to a White House news release.

To guide the initiative, the White House also directed the Agency for Healthcare Research and Quality to conduct a “rapid and comprehensive review” of measures that improve patient safety and reduce medical liability and deliver the results in December. Grant decisions will be made in early 2010, according to the release.

The American Medical Association called the news "a welcome step" toward liability reform. "The AMA supports federal funding for state-based pilot projects on medical liability reform alternatives such as health courts, early disclosure and compensation programs and expert witness qualifications," AMA President James Rohack said in a written statement.