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A slightly revised agreement put together by legislative leaders to restructure the state`s medical malpractice laws was approved Wednesday by the House Judiciary I committee, despite criticism from some lawmakers and representatives of the state`s legal associations.

The new compromise package, which now will be considered on the House floor, would allow a person winning a malpractice suit to recover up to $250,000 in a lump-sum payment but would also reduce any judgment by the full amount of any health-care insurance payments received for medical, hospital and nursing costs.

The committee voted 13-1 to recommend approval of the agreement, but some lawmakers said they would attempt to further amend it on the House floor. The same provisions of the agreement are expected to be heard in a Senate judiciary committee.

”The Illinois Trial Lawyers Association has not agreed with anyone–not with the political leadership, not with the medical society, not with the physician-owned insurance company–to pass this legislation, which is so oppressive in nature that it strips the rights of the medically injured to fair, full, just and prompt compensation,” James Stack, president of the trial lawyers association, told the committee members.

State Rep. Peg Breslin (D., Ottawa) told supporters of the bill:

”Gentlemen, you`ve come a long way with this new agreement, but you`ve still got a long way to go.”

Legislative leaders and Gov. James Thompson`s staff announced the latest agreement Tuesday night after a series of meetings in the office of House Minority Leader Lee Daniels (R., Elmhurst) on the issue, which has become a battle between the state`s doctors and lawyers.

”As with any compromise, neither of the principal sides is particularly pleased,” said Senate President Philip Rock. (D., Oak Park).

Most observers said the original agreement benefited the Illinois State Medical Society, which watched some support for its proposals erode in the last two weeks. Members of the legal community, who had complained that they were not a party to the first agreement, were in on the latest negotiations but declined to endorse the revised agreement.

The new agreement alters the proposal that malpractice awards of more than $250,000 be paid in annual installments. If ratified by the General Assembly, the new agreement would allow for installment payments after the first $250,000–or 50 percent of a judgment, whichever is greater–is paid.

In addition, the new proposal provides that a malpractice verdict can be reduced by the full amount of other payments collected by patients, such as insurance reimbursements for the costs of medical, hospital, nursing and caretaking services.

It also keeps intact state laws allowing the malpractice awards to be reduced by half of money collected through private or government disability programs, such as Social Security.

The measure also would restrict liability for attorneys` fees to plaintiffs and their lawyers only if they disregarded the finding of a special screening panel and filed a malpractice action in a case the screening panel found unwarranted. The recommendation of a panel as to the amount of monetary damages would be advisory and could not be used in later legal action to tax the losing side with court costs.

Under the agreement, the new restrictions would take effect Aug. 15, instead of immediately upon the governor`s signature.