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Killing the Goose That Laid the Golden Egg

By Gary L. Riveles and Cyndee L. Allert

A troubling trend is apparent in medical malpractice actions venued in New Jersey: Over the past few decades, our courts have undermined legislation meant to limit hospital liability for tort claims. These storied and venerable institutions, often originally conceived and operated by religious aid societies, are chartered to provide care to the state's citizenry. The overwhelming majority of hospitals in New Jersey are non-profit institutions that rely upon government programs such as Medicaid and charitable care reimbursements for those patients without medical insurance.

Many hospitals, in an effort to improve economies of scale as well as increase negotiating power, have merged into behemoth hospital systems, incorporating a regional or state-wide presence with five or more hospitals combined. Others have stuck to their roots, remaining small, independent community-based institutions. More recently, a third type of hospital has emerged: the for-profit hospital, a type previously unseen but that now has taken over several different institutions in the state of New Jersey.

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