Contact: Cullen Werwie, 608-267-7303
Green Bay – Governor Scott Walker held a press conference today to announce that the state has made a payment of over $200 million owed to the Injured Patients and Families Compensation Fund (IPFCF).
The payment, made by the State of Wisconsin today, includes a $200 million transfer as well as a loss of earnings and interest of an additional $33 million for a total payment of over $233 million.
“This is another step toward honest budgeting in Wisconsin,” Governor Walker said. “With this payment, we are further restoring confidence in Wisconsin’s ability to manage its finances. By paying off our outstanding debt, operating under a balanced budget, and working on a bi-partisan, pro-jobs agenda, we are sending a clear message to job creators that Wisconsin is open for business.”
To make the payment, the State Controller’s Office, part of the Department of Administration, transfers $233,747,081.35 from the General Fund to the Injured Patients and Families Compensation Fund via an “inter-fund transfer”.
Below is a timeline of events that led to the $233 million payment:
* October 2007: ACT 20 published directing the transfer of funds from the Injured Patients and Families Compensation Fund (IPFCF).
* October 2007: DOA transferred $71.1 million from the IPFCF.
* October 2007: The Wisconsin Medical Society filed a lawsuit against the State of Wisconsin.
* July 2008: DOA transferred $128.5 million from the IPFCF.
* December 2008: Dane County Circuit Court ruled in favor of the state and dismissed the case – the Medical Society appealed.
* January 2010: Bypassing the appellate court – Supreme Court accepted certification.
* July 2010: Calling it an “irrevocable trust,” the Wisconsin State Supreme Court determined that health care providers have a constitutionally protected property interest in the Fund.
— The Court ruled in favor of the Medical Society and remanded back to Circuit Court the issue of repayment (amount and timing).
* July 2011: Dane County Circuit Court Judge Julie Genovese signed the final order directing the state to transfer to the IPFCF $233,747,081.35 on or before October 1, 2011.
