June 17, 2020 by matray

The Portnoy Law Firm published a press release today advising investors that a class action lawsuit has been filed on behalf of ProAssurance Corporation investors that acquired ProAssurance securities between April 26, 2019 and May 7, 2020, inclusive (the “Class Period”).

The complaint filed in this lawsuit alleges that:

• During the Class Period, ProAssurance misrepresented its underwriting and reserve standards, and failed to adequately reserve for losses. Specifically, ProAssurance made false and/or misleading statements and/or failed to disclose that: (i) ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty P&C segment; (ii) ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten; and (iii) as a result, ProAssurance was subject to a materially heightened risk of financial loss and reserve charges.

• On Jan. 22, 2020, ProAssurance announced that because of a deteriorating loss experience related primarily to one large healthcare account underwritten in 2016, it was estimating a $37 million adverse development in its Specialty P&C loss reserves for the fourth quarter of 2019. Additionally, ProAssurance stated that since mid-2019 it had been executing a “comprehensive underwriting strategy in response to emerging trends and changing conditions in healthcare professional liability.” In response to these disclosures, ProAssurance’s stock price fell $4.18 per share, or 11%, to close at $33.40 per share on Jan. 23, 2020.

• On Feb. 20, 2020, ProAssurance announced its 2019 fourth quarter and full year results. ProAssurance revealed that the adverse development from this one large national healthcare account was actually $51.5 million.

• Then, on May 8, 2020, ProAssurance announced that the large healthcare client would likely not renew its policy and instead would likely exercise an option for tail coverage that would result in an additional $50 million in losses in the second quarter of 2020. This loss, when combined with the $51.5 adverse development, meant that ProAssurance would suffer more than $100 million in losses from a single account. In response to these disclosures, ProAssurance’s stock price fell $4.38 per share, or 22%, to close at $15.95 per share on May 8, 2020.

June 17, 2020 by matray

The Board of Governors for the Wisconsin Injured Patients & Families Compensation Fund today voted to waive premiums for the next fiscal year for the healthcare professionals and providers enrolled in the fund.

The premium holiday was originally requested by the Wisconsin Medical Society and endorsed by the Fund’s Actuarial and Underwriting and Finance/Investment/Audit committees before it was approved by the Board. The holiday will be in effect from July 1, 2020, until June 30, 2021.

“COVID-19 has posed unprecedented health and economic challenges to our state, and the healthcare industry is no exception,” said Bud Chumbley, MD, a Board member and the CEO of the Wisconsin Medical Society. “The premium holiday approved today by the Board will provide some financial relief to many of the Wisconsin medical professionals and providers who have been affected by the pandemic and who face ongoing challenges."

The mission of the Injured Patients and Families Compensation Fund is to provide excess medical malpractice coverage to Wisconsin healthcare providers and to ensure that funds are available to compensate injured patients. Healthcare providers obtain primary medical malpractice insurance from private insurance companies in an amount required by statute. Physicians, Certified Registered Nurse Anesthetists who primarily practice in Wisconsin and many types of healthcare facilities are required to participate in the Fund.

The Fund was created in 1975 to provide excess medical malpractice insurance for Wisconsin healthcare providers. It is governed by a 13-member Board of Governors that is chaired by the Commissioner of Insurance and administered by the Office of Commissioner of Insurance. The Board is composed of four public members appointed by the Governor, three insurance industry representatives, a member named by the Wisconsin Association for Justice, a member named by the State Bar of Wisconsin, two members named by the Wisconsin Medical Society, and a member named by the Wisconsin Hospital Association.

As of June 30, 2019, there were a total of 17,261 Fund participants composed of 147 hospitals with 19 affiliated nursing homes, 15,003 physicians, 855 nurse anesthetists, 20 hospital-owned or controlled entities, 73 ambulatory surgery centers, 1 cooperative, 14 partnerships, and 1,129 corporations actively participating in the Fund. As of June 30, 2019, Fund participants consisted of 87 percent physicians, 6 percent corporations, and the remaining 7 percent included all other participants.

For more information, visit the Fund website at https://oci.wi.gov/Pages/Funds/IPFCFOverview.aspx.

June 17, 2020 by matray

Arkansas Gov. Asa Hutchinson issued an executive order that protects healthcare providers from liability.

“I want to thank the General Assembly for its leadership in securing support for limited immunity legislation and for requesting action by the executive order versus calling a special session during the pandemic.” Governor Hutchinson said. "I also want to thank Steuart Walton and the Economic Recovery Task Force for their work on these important issues."

Executive Order 20-34 regarding immunity for healthcare providers orders that:

• Healthcare workers and providers are authorized to use crisis standards of care to respond to treat COVID-19 patients.

• The healthcare providers as emergency workers are immune from civil liability.

• Immunity does not extend to willful, reckless or intentional misconduct.

• Immunity is effective from today until the emergency is terminated.

Executive Order 20-34 can be viewed HERE.