Why the Birth-Injury Program?
A collaborative solution to keep doctors practicing and support families in need.A Groundbreaking Solution to a Statewide Crisis
In the mid-1980s, rising medical malpractice insurance rates threatened to force up to a quarter of Virginia’s obstetricians out of practice. To address this crisis, Virginia brought together physicians, insurers, lawyers, and other stakeholders to create a groundbreaking solution: the Virginia Birth-Related Neurological Injury Compensation Program — the first of its kind in the nation.
By keeping the most severe birth injury cases out of the court system and combining that with a cap on malpractice awards, the Program has helped stabilize Virginia’s malpractice insurance market, especially compared to other states, allowing doctors to focus on patient care.
“Although malpractice premiums have increased significantly in the past couple of years, it does not negate the fact that the malpractice cap and birth injury program appear to have had a positive effect on claims costs, and subsequent malpractice premiums.” (JLARC Review, Page 52)
Since its founding, more than 150 children, about two-thirds of all applicants, have been admitted into the Program. Admission decisions are made solely by the Virginia Workers’ Compensation Commission.
Funding
The Program’s reserve fund currently exceeds $470 million. No state tax dollars are used. Funding comes from sources authorized by state law, including:
- Fees from participating physicians and hospitals
- Assessments on non-participating physicians
- Assessments on liability insurers
Independent actuarial studies show the Program is financially secure for the next 20 years. Beyond that, a shortfall is possible. The Board is actively working with state officials to ensure long-term stability. A new actuarial study is conducted at least every two years, overseen by the State Corporation Commission’s Bureau of Insurance.
Governance
The Program is governed by a nine-member volunteer board, with all members appointed by the Governor of Virginia. Though created by the Virginia General Assembly, the Program operates as an independent organization, headquartered near Richmond.
Authorizing Legislation
Want to Learn More?
The Birth-Injury Program continues to achieve its goals – helping control malpractice costs, supporting access to obstetric care, and ensuring high-quality support for children. For more details, explore the rest of our website or contact us.