Former medical provider for Lackawanna County Prison appeals malpractice insurance ruling

Mar. 13—SCRANTON — The former provider of inmate medical care at Lackawanna County Prison has appealed to state Commonwealth Court a ruling that required the county to pay for only three years of medical malpractice coverage, but not the seven years the firm wanted.

The Jan. 29 ruling and later affirmations by Lackawanna County Court Judge Julia Munley sided with the county, which foots the bill for "tail insurance." That's an extension of malpractice coverage after a regular policy ends.

The county argued that three years of tail insurance costing $793,000 was one year longer than statutorily required and more-than-sufficient protection for both sides. But Moosic-based Correctional Care Inc. (CCI), whose president and chief medical officer is Dr. Edward Zaloga, disagreed and sought seven years of coverage that would have cost the county $1.36 million.

The twist was that while the county was on the hook to pay for tail insurance, only CCI, as the first-named insured party, could order it. CCI initially did not do so, after its contract ended in mid-January and the firm was replaced by a different medical provider at the prison.

The county sued, claiming that if CCI did not lock in tail insurance within a 30-day window after its contract expired, the coverage would have been irretrievably lost; and that potentially would have put the county at great risk of costly malpractice claims.

After various proceedings, Munley ordered on Feb. 5 that CCI immediately secure the tail insurance and the firm complied.

On Feb. 8, CCI appealed to Commonwealth Court, where the appeal remains pending. CCI claims on appeal that Munley's decision was arbitrary, prejudicial, unduly burdensome, oppressive, unreasonable and unnecessary. A seven-year term of coverage is appropriate and the county can afford to pay for it, CCI contends in court papers.

The county seeks dismissal of the appeal, claiming in court papers that the appeal is "moot" because of CCI's compliance with the judge's order to secure the tail insurance.

In a phone interview, Lackawanna County Solicitor Frank Ruggiero said, "We are very, very confident with the trial court's (Munley's) decision and even on appeal that the Commonwealth Court will sustain the trial court's decision."

Attempts to reach CCI attorney John Siejk were unsuccessful.

Contact the writer: jlockwood@timesshamrock.com; 570-348-9100 x5185; @jlockwoodTT on Twitter.

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