R. Taylor Cosby, vice president, Mid-Atlantic region for the American Insurance Association in Washington, said that the legislation "is a positive step forward in the battle against lawsuit abuse directed at Pennsylvania's healthcare community."

Pennsylvania's Senate gave final passage to the bill on the same day that Mississippi Gov. Ronnie Musgrove put his signature on a sweeping medical malpractice reform law for that state. The law includes a provision against forum shopping.

After the bill passed in Pennsylvania, Gov. Mark Schweiker, in addition to thanking the Senate, praised the General Assembly for taking a "significant step forward in our efforts to make sure that Pennsylvanians have access to world-class, quality health care."

He continued that, "As we face the possibility of losing thousands of physicians because they can no longer afford to pay their malpractice insurance, the General Assembly's action to eliminate venue shopping sends a strong signal that we are serious about bringing stability to the marketplace."

AIA's Mr. Cosby said "With further reform, Pennsylvania can ensure that quality healthcare is available to its citizens."

Mr. Cosby said that Pennsylvania continues to lose physicians "due to the increasing severity of medical malpractice lawsuits. As a result of exorbitant jury verdicts and frivolous lawsuits, some physicians and other healthcare providers have been forced to leave the profession or the state."

Mr. Cosby noted that earlier this year, Schweiker enacted Act 13, which included several tort reform provisions. "The legislators are moving in the right direction, but more needs to be done," He concluded.

The AIA said it is supporting an effort by the Pennsylvania medical community to secure legislation that would cap non-economic damages.

The organization mentioned that there also has been a bill introduced to lower the mandatory amount of coverage required from $1 million to $250,000 and to use tobacco money to pay off a deficit in the Medical Professional Liability Catastrophe Loss Fund.

AIA said there will likely be a special legislative session in Pennsylvania this year to address the medical malpractice crisis. AIA represents 412 major insurance companies that provide all lines of property and casualty insurance and write more than $87 billion annually in premiums.