"Thanks to a focused commitment from all parties, this medical malpractice law is comprehensive, providing short-term relief and long-term reform," Gov. McGreevey said.

"Our overriding priority," he said, "is to ensure that patients have access to doctors and quality health care, and this bill meets that objective in several ways."

The final version of the bill, A50, was approved by the Democrat-controlled state Assembly in a 46-25 vote last month. The approved bill was a revised version that incorporates changes made by the state Senate, also controlled by Democrats, in March.

The key provisions of the bill include a $78.3 million three-year subsidy fund to help physicians and hospitals pay for medical malpractice coverage.

The subsidies would be funded by physicians, lawyers, chiropractors and dentists?professionals who would pay a $75-per-year license fee. Hospitals and other health care employers would also pay a $3 tax on each worker.

The bill also sets stricter guidelines for filing malpractice lawsuits, gives judges more leeway to control monetary awards, and encourages mediation rather than court battles.

Additionally, the legislation expands the Good Samaritan Act, allowing health care workers who respond to emergencies beyond their normal duties to receive protection from civil lawsuits.

But critics argue that the bill lacks one critical element needed to stabilize the state's medical malpractice insurance marketplace: putting caps on non-economic damages in jury awards.

Richard Stokes, a representative for the Des Plaines, Ill.-based Property Casualty Insurers Association, noted that while he had expected the governor to sign the bill, "we also sent him a letter last week asking him to veto the legislation."

Mr. Stokes said a veto was asked because "while there are some short-term positive aspects to the legislation, we just don't see how it could help the long-term stability of the marketplace."

"Again, the critical part of the bill that's lacking is caps on non-economic damages. We think that's critical to help develop a long-term strategy to stabilize the marketplace," Mr. Stokes commented.

Still, Mr. Stokes observed that this is probably as far as New Jersey politicians are willing to go in addressing the med mal insurance issue. "I don't think there is going to be anything more," he said. "Considering the fact that this took two years and numerous committee hearings, I just don't think the state legislature has any wherewithal to look at further reforms at this stage."