HARRISBURG -- Sharon Regional Health System's experience settling a costly medical malpractice case provided an example for drafters of medical malpractice reform legislation that overwhelmingly passed the House and Senate Wednesday.

The legislation awaiting Gov. Mark Schweiker's expected signature gives hospitals more legal recourse to challenge jury verdicts in malpractice cases they consider excessive. The bill waives a requirement that a hospital must post a high bond before obtaining a judicial hearing to determine if a verdict is excessive.

Sharon Regional paid out $5 million to settle a high-profile medical malpractice case, rather than challenge the verdict in court, because it didn't want to post the high bond required, said Drew Crompton, a top aide to Senate President Pro Tempore Robert Jubelirer, R-Blair, during a briefing on the legislation.

Crompton touted the removal of the bond requirement as one of the bill provisions aimed at helping hospitals keep down medical liability costs. The legislation clarifies the process by which hospitals can legally challenge verdicts they consider excessive on grounds it would hurt the community the hospital serves.

From the perspective of Sharon Regional, these provisions are not retroactive and thus won't bring any specific financial relief to the hospital, Mercer County's largest employer, said Crompton. The case is considered closed.

"We appreciate the efforts of Pennsylvania's lawmakers, especially Reps. Rod Wilt, Dick Stevenson, Mike Gruitza and Bob Robbins, for their strong support of House Bill 1802, which begins to address the complex and difficult issue of medical liability insurance reform,'' said Ed Newmeyer, director of marketing and community relations for Sharon Regional.

"We look forward to continuing to work with our representatives to address the future of health care delivery in Pennsylvania and encourage them to closely monitor the medical liability insurance environment and consider additional reforms as appropriate.''

The payment of $5 million to settle the malpractice case led Sharon Regional to post a $2.9 million loss for fiscal 2001, according to a report by a bond rating company.

Sharon Regional settled a malpractice case with Hermitage residents Mary Ann Viola and her husband, Joseph, over the misdiagnosis of Mrs. Viola's breast cancer in 1996. Last April, the couple were awarded $12.8 million by a jury, the largest awarded in Mercer County history. The settlement was "in the eight figures,'' the Violas' attorney said. Two doctors also settled in the case.