DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Shadoin HB No. 216
Abstract: Authorizes the Patient's Compensation Fund Oversight Board to invest any portion of
private monies of the Patient's Compensation Fund while maintaining timely payment of
expenses and to invest the segregated fund of the Residual Malpractice Insurance
Authority.
Present law (Const. Art. XII, ยง16) authorizes the establishment of the Patient's Compensation
Fund to hold private monies in trust for the use, benefit, and protection of medical malpractice
claimants and private health care provider members.
Present law establishes the Patient's Compensation Fund Oversight Board to manage, administer,
operate, and defend the Patient's Compensation Fund.
Present law authorizes the board to invest private monies making up the body of the fund if the
private monies are not needed to pay one and one-half times the amount of budgeted
expenditures for that fiscal year.
Proposed law changes present law by deleting the limitation that the board may only invest the
private monies that exceed the amount of one and one-half times the budgeted expenditures.
Proposed law authorizes the board to invest any portion of private monies making up the body of
the fund as long as the board is able to maintain timely payment of claims, future medical care
and related benefits, and other expenses.
Present law creates the Residual Malpractice Insurance Authority to make available medical
malpractice insurance to health care providers who have been refused coverage by private
insurers and establishes rules for administration of the authority.
Present law directs the authority to place the surplus of premiums over losses and expenses into a
segregated fund and directs the risk manager, with concurrence by the Patient's Compensation
Oversight Board, to invest and reinvest those funds.
Proposed law changes present law by authorizing the board to invest and reinvest those funds.
(Amends R.S. 40:1299.44(A)(1)(b) and 1299.46(H))