Judge reaffirms three years of medical malpractice coverage at Lackawanna County prison

Feb. 6—A judge Friday reaffirmed her prior ruling requiring the former provider of inmate medical care at the Lackawanna County prison to secure medical malpractice coverage for three years.

Lackawanna County Court Judge Julia Munley denied a motion by Moosic-based Correctional Care Inc. to reconsider her Jan. 29 ruling and instead require the county to pay for seven years of what's called tail insurance.

The dispute arose when the county last month replaced CCI, whose president and chief medical officer is Dr. Edward Zaloga, as the medical provider at the prison. Tail insurance is an extension of coverage after a regular policy ends. While the county is on the hook to pay for tail insurance, only CCI, as the first-named insured party, can order it.

The county sent $793,000 to the firm's broker for three years of tail insurance, but CCI did not secure it because it wanted seven years that would cost the county $1.36 million.

With the difference of $566,500 at stake, the county filed an injunction to force CCI to lock in three years. If CCI does not secure the tail insurance by Feb. 14, it would be irretrievably lost and that would put the county at significant risk of costly claims, county solicitor Frank Ruggiero argued.

During a remote hearing Wednesday on CCI's motion for reconsideration, company attorney John Siejk again sought seven years. Ruggiero urged Munley to stick with three years, saying CCI could pay for the difference to get four more years.

"If he (Zaloga) wants to pay the additional ($566,500) premium above-and-beyond the three years, he has that choice," Ruggiero said. "We're just not paying for it, nor do we need to pay for it."

Siejk claimed Munley's mandatory temporary injunction of Jan. 29 is effectively a permanent decision. That's because even if CCI were to win on appeal, "the damage is done and cannot be undone," he said. The county also set aside funds for seven years, which would give both sides four additional years of protection, he said.

"It is merely a matter of money — $566,500," Siejk said.

Munley denied the motion and ordered the firm to immediately secure the three years of coverage.

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