Rhode Island Hospital was recently fined $50,000 by the State Department of Health and reprimanded for reports that a doctor at the hospital operated on the wrong side of a patient’s brain during a brain surgery procedure. 

The reason for the fine?  It’s the THIRD time this year that this mistake has happened at this hospital.  Remarkably, all three wrong-side brain operations were performed by different doctors.  At this point, the latest patient to be mistakenly operated upon is okay, as was the first victim of the botched operation.

However, the second patient tragically died as a result of the surgery in August of this year.  That prompted an investigation into the hospital procedures, which apparently did not correct the problem.

Let’s hope the doctors at Rhode Island Hospital have learned their lesson and we won’t have to read in the coming months of a fourth flipped surgery victim.

Let the following be a lesson to those who, like many of us, have employee health insurance through their employers.  If you seek compensation in a personal injury case, as is your right, you may have to reimburse the insurance company if they covered any of your medical bills after the personal injury, under a common process called "subrogation."

The point of subrogation is to avoid having medical bills paid for twice, once by the insurance company, and then by a defendant who is ordered to pay for medical bills as part of a verdict or settlement of a personal injury case.  However, in practice, it can seem like another way for a personal injury victim to be victimized, this time by their insurance company.

As the Wall Street Journal reports, 52-year-old Deborah Shank was involved in a semi tractor trailer accident seven years ago, which left her with permanent brain damage and confined to a wheelchair.  As part of a settlement with the trucking company, she and her husband received $700,000 to pay for her medical care.

At the time of the accident, Shank was an employee of Walmart, and received their healthcare coverage for medical expenses following the accident.  Whether she knew it or not, a subrogation clause was part of her Walmart health insurance, and after paying out $470,000 for medical coverage, the insurance company aimed to get back the money.

After legal fees and other expenses, the Shanks were left with $417,000, which they set up in a medical expenses fund.  However, Walmart sued them for the money, and though they appealed an initial verdict in Walmart’s favor, the Shanks eventually lost the case as well as the money.

What makes it particularly difficult for them is that the money left over from the settlement would not have been enough to pay her medical costs in the first place.  Thus, rather than fairly paying back money for medical expenses that Walmart covered, in their case it was closer to being taken for all they had by Walmart’s insurance plan.

Walmart, of course, was perfectly within its legal right, and pursued subrogation to restore funds back to its insurance coverage for the entire employee pool.  However, in this case, the fine print made the Shanks feel more betrayed than compensated when they won their personal injury case.

Pharmaceutical Company Merck & Co. announced an “agreement” of $4.85 billion for pending personal injury suits concerning complications from the arthritis painkiller VIOXX, according to the Associated Press. The decision comes as a surprise to many, since Merck officials announced as recently as last month that the company planned to argue each case individually in court.

The agreement will become official if 85% of the plaintiffs in about 26,000 lawsuits (including 265 class action suits) agree to drop their cases and accept financial compensation.

VIOXX, released in 1999, was wildly popular as a pain reliever for sufferers of arthritis. Merck shocked the country by removing the drug from the market in late 2004, while it was still in its heyday, because of scientific evidence that the drug doubled the risk of heart attack and stroke.

Though Merck maintained that VIOXX was only potentially harmful to those who had used it for more than 18 months, scientists generally dismissed this claim. An estimated 80,000-140,000 heart attacks and strokes have been attributed to the drug, some of which were fatal.

To qualify for receiving settlement money, claimants must have filed their cases by November 8^th  and have proof that they ingested at least 30 pills, that they suffered a heart attack or stroke, and that they began taking the pills at least two weeks prior to the injury. Individual payments will depend on severity of injury and length of time the drug was used.

A defense attorney on the case is reportedly pleased with the decision, which he believes is the largest in the history of the industry. Merck is apparently emphasizing that this is not a class action settlement, but an “agreement,” a distinction which allows the company to admit no fault.

Early predictions suggested that Merck could face $50 billion dollars in legal costs if it chose to argue all the cases pending.