Medical Liability Monitor March 2025 issue highlights

March 7, 2025 by matray

Below are some headlines and article synopses from the March 2025 issue of Medical Liability Monitor. To read the articles in their entirety, please subscribe today.

Primary Care Physicians Concerned About GLP-1 Telehealth Prescriptions
Amid soaring patient demand for GLP-1 weight loss medications such as Ozempic and Wegovy, primary care physicians (PCPs) are raising concerns about patient safety risks associated with third-party telehealth prescriptions of the new drugs. According to a recent survey conducted by the San Francisco-based healthcare consultancy Omada Health, those concerns are growing as telehealth services play an increasing role in prescribing these medications, often without the involvement of the patient’s primary care physician …

Utah Law Letting Minors Revoke Consent Raises Healthcare Chaos Fears
Under a 2023 update to Utah’s Health Care Malpractice Act, minors who consent to “hormonal transgender treatment” or surgery on “sex characteristics” can later withdraw that consent before reaching the age of 25 if they experience a “permanent injury” from the treatment. This provision allows patients to argue that their doctors should have anticipated the patient’s health outcome and subsequent regret, opening the door to new medical liability claims against clinicians …

Candello Report Highlights Magnitude, Costs of Documentation Errors
A recent benchmarking report from Candello — a division of CRICO, the provider of primary and excess medical liability insurance coverage to Harvard-affiliated healthcare institutions — reveals an alarming frequency of documentation errors and how those errors affect the defensibility of negligence claims …

Indigo Update: The AI-Driven MPL Insurer Reports Strong Growth During Inaugural Year
Indigo, the emerging medical professional liability (MPL) insurance platform founded on leveraging artificial intelligence, expanded data and advanced technology to deliver customized coverage pricing for physicians, reports making significant strides since its launch in October 2023 …

Arkansas Bans Phantom Damages, Halves Birth Injury Filing Deadline
Arkansas Gov. Sarah Huckabee Sanders signed two bills affecting the medical liability industry into law last month. Act 28 prohibits phantom damages in lawsuits by limiting recoverable medical expenses to actual costs paid or owed. Act 124 shortens the statute of limitations for birth-injury medical malpractice claims, reducing the deadline for lawsuits from a child’s 11th birthday to their fifth …

N.Y. Gov. Hochul Proposes Physicians Pay Half of Excess Coverage Costs
New York Gov. Kathy Hochul unveiled her Fiscal Year 2026 Executive Budget on Jan. 21. The proposed budget includes a provision reducing state funding for New York’s Excess Medical Malpractice Insurance Program by requiring a 50% copay from covered physicians. This policy change would impose an estimated $40 million cost on approximately 16,000 physicians who currently benefit from this coverage …

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The Mutual Risk Retention Group Announces Retirement of CEO Gloria H. Everett

March 5, 2025 by matray

The Mutual Risk Retention Group recently announced that its long-serving president and chief executive officer, Gloria H. Everett, will retire after 23 years of leadership. As part of a carefully planned transition, the company has initiated a national search for its next CEO, ensuring a seamless leadership change that aligns with The Mutual’s mission, values and commitment to excellence in the healthcare insurance industry.

Since becoming CEO of The Mutual in 2002, Everett has played a pivotal role in shaping the organization into a trusted leader in risk retention and insurance solutions for healthcare providers. Under her leadership, The Mutual has strengthened its partnership with the physician-led healthcare organization providing acute care management and staffing services Vituity, navigated industry shifts with resilience and positioned itself for future success through strategic innovation and operational excellence.

"Gloria’s leadership has ensured The Mutual’s strength and success for the past 23 years. Her strategic vision and dedication to our insureds has led to the tremendous growth of the organization and excellent care of our clients. Gloria has forged a strong partnership with Vituity, and we are appreciative of the legacy she will leave. On behalf of the Board, we are deeply grateful for her service. The Mutual Board of Directors is launching a search for a new CEO, and we are committed to ensuring a smooth transition that honors the foundation Gloria has created,” said Kelli Westcott, MD, chair of the board for The Mutual.

“Gloria’s leadership has been instrumental in strengthening the partnership between The Mutual and Vituity, ensuring that our clinicians and healthcare teams have the support and protection they need to provide outstanding patient care. Her unwavering dedication, strategic vision, and commitment to our shared mission have left an indelible mark on both organizations. We deeply appreciate her years of service and look forward to working closely with The Mutual’s next CEO to continue building on this strong foundation,” said Theo Koury, MD, Vituity president.

Coverys Appoints Naveed Anwar as Chief Financial Officer

March 3, 2025 by matray

Coverys has appointed Naveed Anwar as its chief financial officer.

Reporting to Coverys President and CEO Joseph G. Murphy, Anwar will oversee strategic initiatives focused on expanding growth opportunities and optimizing capital management to support the company’s long-term sustainability and organizational goals.

Anwar brings more than 25 years of financial experience, including the past decade as a CFO in the medical professional liability (MPL) industry. Throughout his career, he has played a key role in shaping financial performance, enhancing capital management, and transforming financial operations.

Leveraging his expertise in strategic finance, mergers and acquisitions, and leadership, Anwar will oversee corporate finance functions and lead financial analysis to support Coverys’ short- and long-term growth strategies.

“Naveed is a dynamic and accomplished financial strategist with an exceptional record in driving double-digital growth,” Murphy said. “Furthermore, his experience driving international expansion through strategic initiatives solidifies his standing as a leader who is well-equipped to support Coverys’ global growth and diversification strategy. His appointment reflects our ongoing dedication to elevating operational excellence and driving innovation in an evolving industry.”

“Coverys has remained a steadfast leader in the medical professional liability industry for 50 years,” Anwar said. “The organization has taken a measured approach to portfolio diversification, sustained growth, and profitability that fortifies its long-term financial strength and stability. I am honored to have the opportunity to contribute to its mission of empowering healthcare providers by supporting the organization’s next phase of growth.”

Most recently, Anwar served as CFO at MagMutual Insurance, where he drove financial performance and value creation. Previously, he was CFO for the North American region of Catlin, part of XL Catlin, and held senior finance and consulting roles at AIG, American Express, and PwC across multiple international markets.

Anwar is a member of the Institute of Chartered Accountants in England and Wales and holds a finance and accounting degree from Kingston University in the United Kingdom.

 

The Doctors Company Promotes Laura Kline to Regional Operating Officer of the Northeast Region

February 21, 2025 by matray

The Doctors Company, part of TDC Group, announced today the promotion of Laura Kline, MBA, CPCU, CIC, to regional operating officer of the Northeast Region.

In her new role, Kline will drive operational excellence across the 26 states located in the Northeast Region and lead teams including Business Development, Underwriting, Claims, and Patient Safety and Risk Management in enhancing member experiences. She is replacing Tammy Clark, who is leaving the company.

Ms. Kline currently serves as senior vice president of business development for TDC Group, with oversight of the national business development team, sales, distribution, agency management, and affinity programs.

"I am thrilled to congratulate Laura on her expanded role at The Doctors Company," said Deepika Srivastava, chief operating officer of The Doctors Company. "She has been a key contributor to our growth and success, serving in many executive roles following an acquisition over 15 years ago. Her extensive experience in healthcare and professional liability insurance and her proven leadership make her very well suited to drive continued excellence in our Northeast Region."

Kline joined the company in 2011 following the acquisition of American Physicians Assurance, where she served as vice president of marketing and president of the alternative risk transfer subsidiary.

"I am very excited to lead the Northeast Region, oversee operational excellence, and ensure growth as we advance, protect, and reward the practice of good medicine," Kline said. "We will continue to serve and advocate for all healthcare professionals as a strong partner for this robust region."

MagMutual Declares Policyholder Dividend for 2025

February 14, 2025 by matray

MagMutual Insurance Co. announced a 2.5% dividend return to its policy owners for this year.

With this latest declaration, MagMutual now has awarded 26 years of dividends throughout its company history. During that time, the company has returned $468 million in financial rewards to policyholders since inception, including $167 million paid over the past five years.

“Our impressive record of continuously paying dividends year-over-year is one of the many ways we put our policyholders first,” said William S. Kanich, MD, JD, executive chairperson of MagMutual. “This year marks our 18th consecutive year of dividends and 26th year overall. I’m proud that MagMutual continues to return dividends to the healthcare providers who trust us to protect them.”

”MagMutual demonstrates a high rate of financial strength and growth in our industry. This strength has allowed us to dependably declare dividends for the past 18 years,” said Neil Morrell, chief executive officer of MagMutual. “Our record of supporting policyholders with innovative insurance solutions, risk management services and financial rewards continues to be unmatched.”

LAMMICO Named a 2024 Best and Brightest Company to Work For in the Nation

February 12, 2025 by matray

LAMMICO was named one of the "Best and Brightest Companies to Work For" in the Nation for 2024 by the National Association for Business Resources. The Best and Brightest Companies to Work For identifies and honors companies that deliver exceptional employment practices and demonstrate an impressive commitment to their employees. An independent research firm assessed the winners, based on categories such as work-life blend, community initiatives and corporate responsibility, employee education and development, diversity, retention and more. This honor marks the tenth time that LAMMICO has received the Best and Brightest Companies to Work For in the Nation designation since 2015.

“Receiving this designation demonstrates the strengths and talents of the team here at LAMMICO. I am thrilled that the Company and its employees are being honored for all that we do for our customers, communities and each other,” said J. Michael Conerly, MD, LAMMICO president and chief executive officer. “We work together toward our shared purpose of protecting those who care for others, and this award celebrates our efforts and achievements.”

LAMMICO is headquartered in Metairie, Louisiana, and has offices in Baton Rouge and Shreveport.

Medical Liability Monitor February 2025 issue highlights

February 7, 2025 by matray

Below are some headlines and article synopses from the February 2025 issue of Medical Liability Monitor. To read the articles in their entirety, please subscribe today.

Oregon Supreme Court to Determine MPL Limits in Non-Patient’s Death
The Oregon Supreme Court last month heard oral arguments in a case seeking to define the limits of medical professional liability in situations involving non-patient third parties. The case, Stone v. Witt, involves Shantel Witt, who, while impaired by prescribed medication, crashed her car into bicyclist Marika Stone. Witt was subsequently convicted of first-degree manslaughter, driving under the influence of intoxicants, unlawful possession of oxycodone and unlawful possession of a Schedule IV controlled substance. She was sentenced to more than 12 years in prison. In addition to suing Witt for civil damages, Stone’s estate filed medical negligence claims against Nancy Brennan, DO, and her employer St. Charles Health System, Inc.; Kevin Rueter, MD, and his employer High Desert Personal Medicine, LLC; and Walgreen Co., doing business as Walgreens Pharmacy …

California AG Issues Advisory on use of Artificial Intelligence in Healthcare
California Attorney General Rob Bonta issued a legal advisory last month to healthcare entities that develop, sell or use artificial intelligence (AI) regarding their obligations under California law. The advisory — Application of Existing California Law to Artificial Intelligence in Healthcare — provides specific guidance for healthcare providers, insurers, vendors, investors and other entities involved in the development, sale and use of AI and automated decision-making systems …

New Mexico Leaders Push for MedMal Reform to Address Physician Shortage
The Democratic governor of New Mexico and the state’s House Republican caucus independently announced last month that addressing medical professional liability costs to attract more healthcare workers to the state would be a priority during the 2025 legislative session. Healthcare workers were identified as the top occupational need in 28 of New Mexico’s 33 counties, according to the most recent data …

Georgia Gov. Kemp Names Tort Reform Top Priority, Threatens to Call Special Session If General Assembly Fails to Act
Georgia Gov. Brian Kemp used his recent State of the State Address to declare tort reform his top legislative priority for the year, warning lawmakers that he would call a special session if they failed to pass legislation curbing the rising costs of civil liability awards. While Gov. Kemp’s office had yet to release specific policy proposals by press time, the insurance commissioner’s report resulting from the Data Analysis for Tort Reform Act — which the governor referenced in his address — provides insight into how the General Assembly might proceed …

Massachusetts High Court Rejects Appeal on ‘High-Low’ Agreement Bias
The Massachusetts Supreme Judicial Court last month upheld a trial judge’s decision to deny a medical malpractice defendant’s request to cross-examine witnesses about a “high-low” settlement agreement reached by two other defendants. High-low agreements set minimum and maximum amounts a defendant will pay the plaintiff prior to the jury rendering a verdict …

Federal Agencies Warn of Private Equity’s Increasing Role in Healthcare
The Federal Trade Commission, Department of Justice and Department of Health & Human Services published a joint report last month detailing concerns about the “new and unique” risks associated with the increasing role of private equity in healthcare delivery. The report, titled “Consolidation in Healthcare Markets Request for Information,” urges the U.S. Congress and state lawmakers to implement stricter oversight, including lowering the financial threshold for reporting mergers and expanding transparency rules for ownership structures in healthcare facilities …

Women, Minorities Bear the Brunt of Medical Misdiagnoses
An estimated 795,000 patients a year die or are permanently disabled because of misdiagnosis. Some patients are at higher risk than others. Women and racial / ethnic minorities are 20% to 30% more likely than white men to experience a misdiagnosis …

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The Cooperative of American Physicians’ Mutual Protection Trust Earns 18th Consecutive AM Best A+ (Superior) Rating

January 31, 2025 by matray

AM Best Affirms Credit Ratings of MLMIC Insurance Company

January 30, 2025 by matray

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of MLMIC Insurance Company (MLMIC) (Albany, NY). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MLMIC’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings benefit from the financial support provided by MLMIC’s direct parent company, National Indemnity Company (NICO), which is ultimately owned by Berkshire Hathaway Inc.

MLMIC has a long track record of favorable reserve development and adequate underwriting returns. In the past six years, the company’s net operating results have been skewed by the 100% loss portfolio transfer (LPT) and 85% quota share agreements with NICO, which were executed in 2018. As a result, favorable reserve development related to prior accident years covered by the LPT (for all business written prior to the acquisition by NICO in 2018) no longer benefits MLMIC’s underwriting results. The pace of favorable reserve development was likely further slowed by the impact of the COVID-19 pandemic on the New York court system, which reduced the speed with which claims were closed and delayed the recognition of possible favorable reserve development on more recent accident years that are not covered under the LPT. As a result, the company’s net underwriting results in the past six years have not yet benefited from the same degree of reserve releases seen in previous years. However, gross underwriting results remain in line with historical trends and support the current operating performance assessment of adequate. Over time, AM Best expects that MLMIC’s calendar-year underwriting results will continue to improve and approximate the company’s historically stronger results.

MLMIC’s insurance portfolio is concentrated in the medical professional liability (MPL) line of business. The company underwrites risks only within New York, which is one of the nation’s most challenging and litigious markets for MPL. As a mitigating factor, management has been able to operate successfully through underwriting cycles while maintaining MLMIC’s leading market position within New York. In addition, risk management capabilities have proven appropriate for the company’s risk profile.

Everest Intnl. Reinsurance Ltd. (Singapore Branch) Appoints RedRay to Quote, Bind Policies for Healthcare Sector

January 15, 2025 by matray

RedRay MGA Pte. Ltd. (RedRay), a Managing General Agent (MGA), announced its appointment as the exclusive underwriting agent for Everest International Reinsurance Limited, Singapore Branch (EIS) for Medical Malpractice Liability Insurance and associated coverages in Asia.

EIS has obtained the relevant regulatory approval to appoint RedRay as its underwriting agent to quote and bind policies specific to clients in the healthcare sector. RedRay is now EIS’ first exclusive healthcare MGA in Asia.

RedRay’s healthcare MGA caters to a broad spectrum of clients – from medical and allied health practitioner organizations to complex institutions such as Acute Hospitals, Teaching Hospitals, Clinics & Surgeries, Aged Care, Assisted Living and other specialty facilities. Healthcare clients can also avail themselves to customized packaged commercial insurance coverage across several lines to help save on their overall insurance expenditure.

On RedRay’s appointment, Tomi Latva-Kiskola, Everest’s regional head of insurance Asia said, “Our partnership with RedRay stems from our strategic alignment to target and grow in the fast-expanding healthcare sector. RedRay’s deep understanding of the unique exposures and expertise in this sector make it an ideal partner to expand our capabilities in Asia.”

The region is primed for rapid healthcare change driven by shifting demographics, rising consumer expectations, technological innovations and limited legacy health infrastructure. The increasing demand for health services for an ageing population, the manpower training to achieve adequate doctor-patient ratios, infrastructure upgrades and digital health disruptions, are driving many governments in Asia to increase their investment in healthcare.

Christopher Rummery, RedRay MGA’s CEO said, “We are delighted and humbled by our appointment to be EIS’ exclusive healthcare MGA. Building capacity with partners in rapidly growing sectors of the marketplace lies at the heart of our business. We complement insurance companies like EIS, which have growth ambitions in specialty lines of business, as they can quickly and efficiently tap into our entrepreneurial mindset, robust products and geographical expertise.”

Kamal Hamzah, head of healthcare and liability at RedRay MGA added, “Our partnership with EIS is well-timed as the healthcare industry continues to evolve and impact the indemnity needs of practitioners and institutions alike. Having medical malpractice specialists in the Asia Pacific region with close to 20 years’ experience, our agility and innovation allow us to deliver market-leading solutions for all our healthcare clients. I’m excited for the future of the region’s healthcare and look forward to growing further with our existing network of loyal partners and forging new ones.”