Nearly $3 of every $100 spent on patient care in Pennsylvania hospitals goes toward the cost of malpractice insurance, according to a state report released yesterday, but the pain is being felt more in Philadelphia than Pittsburgh.

		On the Internet See more information about the malpractice expenses survey

The 182 general acute care hospitals in the state spent $636 million on malpractice insurance costs during fiscal 2004, a survey by the Pennsylvania Health Care Cost Containment Council found.

Malpractice expenses as a percent of net patient revenue during fiscal 2004 averaged 2.67 percent for hospitals across Pennsylvania, the study said, but only 1.6 percent at hospitals in the eight counties in the southwest corner of the state.

That made Pittsburgh the lowest-cost region in Pennsylvania. By comparison, Philadelphia lived up to its litigious reputation, with hospitals in that county spending 3.95 percent of net patient revenue on malpractice costs.

The cost of malpractice insurance for physicians has been a hot-button issue in the state for several years, with reports of premium inflation driving physicians out of Pennsylvania. That dynamic is part of the problem for hospitals, the council's report found.

During fiscal 2004, hospitals subsidized the malpractice expenses for 5,289 physicians and medical staff at a total cost of $37.4 million -- or $7,077 per doctor, the council reported.

It is hoped that the new report on malpractice insurance will provide a baseline for determining future trends, said Marc P. Volavka, the cost containment council's executive director.