The bill limits venue in malpractice actions to the county where the cause of action occurred, and establishes a 30 percent at-fault requirement for joint-and-several liability. Liability is "several" for a defendant less than 30 percent at fault, and joint-and-several up to 50 percent for a defendant whose fault is 30 percent or more.

The move to revise the state's medical malpractice law came as soaring jury verdicts led insurers to stop writing coverage, and physicians facing heavy premiums to abandon the state.

Among other provisions in the bill is one that requires the state insurance commissioner to study an insurance risk pool and report his findings to the legislature by Jan. 5, 2003.

At a ceremony in the state capital in Jackson, Gov. Musgrove said the new law offers "a foundation for better healthcare in Mississippi."

The governor, who was flanked by representatives from the medical provider sector, said the state's "healthcare crisis has been addressed. The people of our state need to know their doctors will be there to provide care for them, and that assurance has been given."

The governor has continued the special session that began Sept. 5 to address the wider issue of civil justice tort reform.

Trial lawyers representing plaintiffs who claim injuries by doctors and hospitals are unhappy about the new law. David Baria, president of the Mississippi Trial Lawyers Association, according to an Associated Press report, said he is considering a legal challenge to the law on constitutional grounds related to the damage caps and their effect on those injured in December who fail to file suit before the law's effective date.

The National Association of Independent Insurers said the revisions in the law will help stabilize the state's insurance marketplace. James Taylor, Southeast regional manager for the Des Plaines, Ill.-based NAII, called the measure "an important first step in achieving meaningful tort reform in Mississippi."

He added that NAII, whose members write more than 37 percent of the property-casualty insurance in Mississippi, "hopes the legislature will take the next step as Gov. Musgrove expands the agenda for the special session to address general tort reform issues."

"The state is suffering from a chronic shortage of doctors, but is gaining a national reputation for jackpot justice," said Mr. Taylor. In addition to doctors, cigarette companies and HMOs have been hit with costly verdicts, he noted.

The Washington-based American Insurance Association also said the law would provide stability and predictability for the state's medical malpractice insurance market, which should improve over time. AIA citing the bill's provisions, noted that in the absence of negligence, medical providers who prescribe FDA-approved drugs cannot be sued in lawsuits filed against drug manufacturers.