Philadelphia-based Jefferson Health has been ordered to pay $108 million in a birth injury malpractice lawsuit, one of the largest jury awards in Pennsylvania in recent years, The Philadelphia Inquirer reported March 20.
A Philadelphia jury found physicians at Einstein Pediatrics — a practice Jefferson acquired through a 2021 merger with Einstein Healthcare Network — liable for brain injuries suffered by a baby delivered with forceps in December 2018, according to the report. The child sustained permanent neurologic injuries, according to the lawsuit filed in July 2024.
The verdict marks the largest malpractice award in Philadelphia since a $183 million judgment against Penn Medicine in 2023 tied to a birth injury case at the Hospital of the University of Pennsylvania. The verdict later rose to $208 million due to delays and appeals.
Jefferson said it strongly disagrees with the verdict and plans to appeal.
“Jefferson strongly disagrees with the outrageous and inappropriate verdict and believes it does not reflect the medical evidence or the facts of this case,” a spokesperson for the health system said in a statement shared with Becker’s.
Jefferson, which recently merged with Allentown, Pa.-based Lehigh Valley Health Network, said key evidence was excluded during the trial and argued that the jury was presented with an incomplete picture of the case.
“Throughout the trial, the jury was not permitted to hear crucial evidence that showed conclusively that the clinicians provided exceptional medical care,” the statement said. “As a result, the jury was presented with a misleading picture of the medical facts, and liability was based on theories that were not supported by the medical record.”
Jefferson also claimed evidence presented during the trial indicated the child was born in good condition, with near-perfect Apgar scores and no signs of birth trauma, and that the child’s later condition was consistent with a genetic diagnosis rather than a birth injury.
The health system said it is pursuing post-trial motions and is confident the verdict will be overturned on appeal.
The case adds to growing concerns among hospital leaders about so-called “nuclear verdicts” in Pennsylvania.
A 2023 rule change allowing “venue shopping” — where malpractice lawsuits can be filed in plaintiff-friendly jurisdictions regardless of where care was delivered — has made Pennsylvania one of the most challenging environments for hospital operators.
“Many providers in western Pennsylvania are already financially struggling. A single large case could, quite frankly, put them out of business,” Brian Devine, CFO of Pittsburgh-based Allegheny Health Network, said during an episode of Becker’s “CFO + Revenue Cycle Podcast.” “This is a major risk in our market as we continue to see malpractice claims and settlement demands rise at an alarming rate.”
Rising malpractice settlements are an increasing concern for hospital finance leaders. In western Pennsylvania, providers are facing larger plaintiff demands and more frequent involvement from out-of-state law firms.
“Historically, this phenomenon has been more common in large metro areas where massive plaintiff demands and settlements are more typical,” Mr. Devine said. “However, we’re now seeing out-of-state lawyers filing substantial claims in our region, which has raised serious concerns about malpractice litigation trends and the financial impact of these settlements on providers in our market.”
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