CHAPTER 6. PATIENT'S COMPENSATION FUND
IC 34-18-6
Chapter 6. Patient's Compensation Fund
IC 34-18-6-1
Creation of fund
Sec. 1. (a) The patient's compensation fund is created to be
collected and received by the commissioner for exclusive use for the
purposes stated in this article.
(b) The fund and any income from the fund shall be held in trust,
deposited in a segregated account, invested, and reinvested by the
commissioner as authorized by IC 27-1-13 and does not become a
part of the state general fund.
(c) Proceeds of the annual surcharge levied on all health care
providers in Indiana under IC 34-18-5 shall be deposited in the fund.
As added by P.L.1-1998, SEC.13.
IC 34-18-6-2
Protection of fund; legal services; expenses
Sec. 2. (a) The commissioner, using money from the fund, as
considered necessary, appropriate, or desirable, may purchase or
retain the services of persons, firms, and corporations to aid in
protecting the fund against claims. The commissioner shall retain the
services of counsel described in subsection (b) to represent the
department when a trial court determination will be necessary to
resolve a claim against the patient's compensation fund.
(b) When retaining legal services under subsection (a), the
commissioner shall retain competent and experienced legal counsel
licensed to practice law in Indiana to assist in litigation or other
matters pertaining to the fund.
(c) The commissioner has sole authority for the following:
(1) Making a decision regarding the settlement of a claim
against the patient compensation fund.
(2) Determining the reasonableness of any fee submitted to the
department of insurance by an attorney who defends the patient
compensation fund under this section.
(d) All expenses of collecting, protecting, and administering the
fund shall be paid from the fund.
As added by P.L.1-1998, SEC.13. Amended by P.L.111-1998, SEC.8.
IC 34-18-6-3
Repealed
(Repealed by P.L.111-1998, SEC.16.)
IC 34-18-6-4
Payment of claims; time for payment
Sec. 4. (a) Claims for payment from the patient's compensation
fund that become final during the first six (6) months of the calendar
year must be computed on June 30 and must be paid not later than
the following July 15. Claims for payment from the fund that become
final during the last six (6) months of the calendar year must be
computed on December 31 and must be paid not later than the
following January 15.
(b) If the balance in the fund is insufficient to pay in full all
claims that have become final during a six (6) month period, the
amount paid to each claimant must be prorated. Any amount left
unpaid as a result of the proration must be paid before the payment
of claims that become final during the following six (6) month
period.
As added by P.L.1-1998, SEC.13.
IC 34-18-6-5
Warrant for payment from fund; vouchers
Sec. 5. The auditor of state shall issue a warrant in the amount of
each claim submitted to the auditor against the fund on June 30 and
December 31 of each year. The only claim against the fund shall be
a voucher or other appropriate request by the commissioner after the
commissioner receives:
(1) a certified copy of a final judgment against a health care
provider; or
(2) a certified copy of a court approved settlement against a
health care provider.
As added by P.L.1-1998, SEC.13.
IC 34-18-6-6
Processing of claims; conditions of payment; settlement
Sec. 6. (a) If an annual aggregate for a health care provider
qualified under this article has been paid by or on behalf of the health
care provider, all amounts that may subsequently become due and
payable to a claimant arising out of an act of malpractice of the
health care provider occurring during the year in which the annual
aggregate was exhausted shall be paid from the patient's
compensation fund under the following terms and conditions:
(1) A health care provider whose annual aggregate has been
exhausted has no right to object to or refuse permission to settle
such a claim.
(2) If a health care provider or the commissioner and claimant
agree on a settlement, the following procedure must be
followed:
(A) A petition shall be filed by the claimant with the court in
which the action is pending against the health care provider
or, if none is pending, in the circuit or superior court of
Marion County, seeking approval of the agreed settlement.
(B) A copy of the petition shall be served on the
commissioner and the health care provider at least ten (10)
days before filing and must contain sufficient information to
inform the other parties about the nature of the claim and the
amount of the proposed settlement.
(C) The commissioner may agree to the settlement, or the
commissioner may file written objections to the settlement.
The agreement or objections shall be filed within twenty
(20) days after the petition is filed.
(D) The judge of the court in which the petition is filed shall
set the petition for approval or, if objections have been filed,
for hearing, as soon as practicable. The court shall give
notice of the hearing to the claimant, the health care
provider, and the commissioner.
(E) At the hearing the commissioner, the claimant, and the
health care provider may introduce relevant evidence to
enable the court to determine whether or not the petition
should be approved if the evidence is submitted on
agreement without objections. If the commissioner and the
claimant cannot agree on the amount, if any, to be paid out
of the patient's compensation fund, the court shall determine
the amount for which the fund is liable and render a finding
and judgment accordingly. In approving a settlement or
determining the amount, if any, to be paid from the patient's
compensation fund, the court shall consider the liability of
the health care provider as admitted and established.
(F) A settlement approved by the court may not be appealed.
A judgment of the court fixing damages recoverable in a
contested proceeding is appealable under the rules governing
appeals in other civil cases tried by the court.
(b) The commissioner may adopt rules under IC 4-22-2
implementing this section.
As added by P.L.1-1998, SEC.13.
IC 34-18-6-7
Exemptions from state procurement statutes
Sec. 7. The following are exempt from IC 5-22 governing state
purchasing:
(1) Technical contractual personnel and services retained by the
commissioner for protecting and administering the patient's
compensation fund.
(2) Purchasing of annuities for structuring settlements from the
patient's compensation fund or in combination with the patient's
compensation fund and the health care provider's insurer.
As added by P.L.1-1998, SEC.13.