On November 15, 2000, New York Governor George E. Pataki vetoed a bill that the health care community feared would have greatly increased the cost of malpractice litigation. The bill, S.554, would have eliminated current limits on attorney contingency fees in medical malpractice actions. GNYHA strongly opposed the bill, arguing that the existing statutory limitation on attorney contingency fees in medical malpractice actions strikes a well-considered and appropriate balance between respecting the rights of patients and controlling the extraordinary costs of malpractice litigation. In a thoughtful and well-reasoned veto message, Governor Pataki stated that "any attempt to reform [New York's civil justice system] ... necessarily must address an array of numerous, often interrelated issues. Repeal of the contingent fee schedule ... could affect both the cost and availability of medical malpractice insurance and, thus, the number of doctors that practice in this State, and the cost patients pay for their medical care, either in the form of increased fees or higher health insurance premiums." The Governor also expressed the concern that the legislation could affect "the volume and duration of litigation and the size of settlements and awards." While recognizing that the proponents of the legislation made some persuasive arguments, the Governor ultimately came to the conclusion that "the merits of this proposal ... cannot be assessed properly in a vacuum. Rather, they should be considered only in the context of a fair, balanced and comprehensive examination of New York's civil justice system."

GNYHA Reaction: GNYHA strongly supports the Governor's decision to veto S.554. In a November 16, 2000, letter to the Governor, GNYHA President Kenneth E. Raske stated, "We appreciate the competing viewpoints put forward to you on this issue and the resulting pressures that you faced. We therefore thank you very much for your careful deliberation regarding the implications of this bill and your resulting veto. We would also like to thank your health care counsel, Deborah Konopko, for her thoughtful consideration of this important issue." GNYHA has urged its members to similarly express gratitude to Governor Pataki for vetoing this legislation.