Professional Medical Liability Reform Act of 1989

Professional Medical Liability Reform Act of 1989 - Establishes within the Department of Justice a program to fund the creation and operation of State medical liability arbitration panels. Confers upon such panels original and exclusive jurisdiction to hear all claims of medical malpractice that are not against the United States.

Catalogs the powers of the panels. Sets forth standards applicable to panel decisions, including provisions relating to choice of law, timetable to govern decisionmaking, criteria relating to expert witnesses, and guidelines for the transmission of a written decision to the parties.

Permits admission of evidence of collateral sources of compensation for injuries and requires a mandatory offset of amounts from such sources against damage awards.

Authorizes panels to dismiss frivolous claims.

Directs panels to determine the amount of damages owed to the plaintiff by a defendant found to be professionally negligent. Permits States to provide judicial enforcement of such damage awards if not promptly paid.

Limits recovery for noneconomic loss to a maximum of $250,000, with provision for a cost of living adjustment every three years.

Authorizes periodic payment of awards under certain circumstances.

Prescribes procedures and standards to govern judicial review of a panel decision.

Requires the panel to report to the State insurance commissioner and to the appropriate licensing or certification body within 30 days in cases when a defendant has been found guilty of professional negligence or when a settlement agreement is reached. Requires that the appropriate board make such report available for public inspection and that the commissioner promptly notify each liability insurance provider in the State concerning findings of negligence and the terms of any settlement agreement. Permits the State to authorize liability insurance providers to adjust their rates for persons found liable by a panel or who have entered into certain settlement agreements.

Establishes a schedule of attorney fees in professional negligence actions. Provides for installment payment of such fees according to a formula specified in this Act. Subjects an attorney violating fee provisions to civil liability, with jurisdiction over such actions granted to Federal district courts.

Requires each State to establish programs to: (1) study the causes of professional negligence in the interest of developing means to prevent or reduce its incidence; (2) review the authority and operations of State medical liability claims plans, risk management bodies, and appropriate health care professional licensing or certification entities; and (3) develop educational materials relating to professional negligence and standards of health care practice.

Directs the State health commissioner to develop programs to identify, investigate, and report on incidents of professional negligence and to encourage facilities to take action to prevent future negligence.

Fixes a statute of limitations for professional negligence actions.

Encourages States to permit parties to a claim filed with a panel to enter into a settlement agreement at any time prior to a panel decision. Subjects such a settlement to the same attorney fee schedule that governs panel decisions.

Directs the Attorney General to make specified payments to States eligible for medical liability panel funds according to a specified timetable and schedule. Requires the Governor of a recipient State to report to the Attorney General within one year after receipt of payment concerning the use of such payment.

Authorizes the Attorney General to determine the allocation of funds to qualifying States and prescribes guidelines for such determinations.

Empowers the Attorney General to make decisions concerning compliance with this Act, termination of allocations and repayment of funds in the event of noncompliance, and reallocation of funds according to guidelines in this Act.

Sets forth procedures, a timetable, and standards to govern application by the Governor of any State for the certification of programs to qualify a State for funding under this Act.

Makes decisions by the Attorney General concerning noncompliance, the termination of allocations, State repayment of funds, and the reallocation of funds final and not subject to judicial review.

Directs the Attorney General to promulgate regulations to implement the provisions of this Act.

Authorizes appropriations beginning in FY 1990.