IC 34-18-6
    Chapter 6. Patient's Compensation Fund

IC 34-18-6-1
Creation of fund
    Sec. 1. (a) The patient's compensation fund is created to becollected and received by the commissioner for exclusive use for thepurposes stated in this article.
    (b) The fund and any income from the fund shall be held in trust,deposited in a segregated account, invested, and reinvested by thecommissioner as authorized by IC 27-1-13 and does not become apart of the state general fund.
    (c) Proceeds of the annual surcharge levied on all health careproviders in Indiana under IC 34-18-5 shall be deposited in the fund.
As added by P.L.1-1998, SEC.13.

IC 34-18-6-2
Protection of fund; legal services; expenses
    Sec. 2. (a) The commissioner, using money from the fund, asconsidered necessary, appropriate, or desirable, may purchase orretain the services of persons, firms, and corporations to aid inprotecting the fund against claims. The commissioner shall retain theservices of counsel described in subsection (b) to represent thedepartment when a trial court determination will be necessary toresolve a claim against the patient's compensation fund.
    (b) When retaining legal services under subsection (a), thecommissioner shall retain competent and experienced legal counsellicensed to practice law in Indiana to assist in litigation or othermatters pertaining to the fund.
    (c) The commissioner has sole authority for the following:
        (1) Making a decision regarding the settlement of a claimagainst the patient compensation fund.
        (2) Determining the reasonableness of any fee submitted to thedepartment of insurance by an attorney who defends the patientcompensation fund under this section.
    (d) All expenses of collecting, protecting, and administering thefund shall be paid from the fund.
As added by P.L.1-1998, SEC.13. Amended by P.L.111-1998, SEC.8.

IC 34-18-6-3
Repealed
    (Repealed by P.L.111-1998, SEC.16.)

IC 34-18-6-4
Payment of claims; time for payment
    Sec. 4. (a) Claims for payment from the patient's compensationfund that become final during the first six (6) months of the calendaryear must be computed on June 30 and must be paid not later thanthe following July 15. Claims for payment from the fund that becomefinal during the last six (6) months of the calendar year must be

computed on December 31 and must be paid not later than thefollowing January 15.
    (b) If the balance in the fund is insufficient to pay in full allclaims that have become final during a six (6) month period, theamount paid to each claimant must be prorated. Any amount leftunpaid as a result of the proration must be paid before the paymentof claims that become final during the following six (6) monthperiod.
As added by P.L.1-1998, SEC.13.

IC 34-18-6-5
Warrant for payment from fund; vouchers
    Sec. 5. The auditor of state shall issue a warrant in the amount ofeach claim submitted to the auditor against the fund on June 30 andDecember 31 of each year. The only claim against the fund shall bea voucher or other appropriate request by the commissioner after thecommissioner receives:
        (1) a certified copy of a final judgment against a health careprovider; or
        (2) a certified copy of a court approved settlement against ahealth care provider.
As added by P.L.1-1998, SEC.13.

IC 34-18-6-6
Processing of claims; conditions of payment; settlement
    Sec. 6. (a) If an annual aggregate for a health care providerqualified under this article has been paid by or on behalf of the healthcare provider, all amounts that may subsequently become due andpayable to a claimant arising out of an act of malpractice of thehealth care provider occurring during the year in which the annualaggregate was exhausted shall be paid from the patient'scompensation fund under the following terms and conditions:
        (1) A health care provider whose annual aggregate has beenexhausted has no right to object to or refuse permission to settlesuch a claim.
        (2) If a health care provider or the commissioner and claimantagree on a settlement, the following procedure must befollowed:
            (A) A petition shall be filed by the claimant with the court inwhich the action is pending against the health care provideror, if none is pending, in the circuit or superior court ofMarion County, seeking approval of the agreed settlement.
            (B) A copy of the petition shall be served on thecommissioner and the health care provider at least ten (10)days before filing and must contain sufficient information toinform the other parties about the nature of the claim and theamount of the proposed settlement.
            (C) The commissioner may agree to the settlement, or thecommissioner may file written objections to the settlement.The agreement or objections shall be filed within twenty

(20) days after the petition is filed.
            (D) The judge of the court in which the petition is filed shallset the petition for approval or, if objections have been filed,for hearing, as soon as practicable. The court shall givenotice of the hearing to the claimant, the health careprovider, and the commissioner.
            (E) At the hearing the commissioner, the claimant, and thehealth care provider may introduce relevant evidence toenable the court to determine whether or not the petitionshould be approved if the evidence is submitted onagreement without objections. If the commissioner and theclaimant cannot agree on the amount, if any, to be paid outof the patient's compensation fund, the court shall determinethe amount for which the fund is liable and render a findingand judgment accordingly. In approving a settlement ordetermining the amount, if any, to be paid from the patient'scompensation fund, the court shall consider the liability ofthe health care provider as admitted and established.
            (F) A settlement approved by the court may not be appealed.A judgment of the court fixing damages recoverable in acontested proceeding is appealable under the rules governingappeals in other civil cases tried by the court.
    (b) The commissioner may adopt rules under IC 4-22-2implementing this section.
As added by P.L.1-1998, SEC.13.

IC 34-18-6-7
Exemptions from state procurement statutes
    Sec. 7. The following are exempt from IC 5-22 governing statepurchasing:
        (1) Technical contractual personnel and services retained by thecommissioner for protecting and administering the patient'scompensation fund.
        (2) Purchasing of annuities for structuring settlements from thepatient's compensation fund or in combination with the patient'scompensation fund and the health care provider's insurer.
As added by P.L.1-1998, SEC.13.