August 19, 2020 by matray

Conventus Inter-Insurance Exchange announced the launch of its modern and easy-to-navigate website, www.conventusnj.com, providing physicians, practice administrators and brokers with valuable resources for their clinical and business operations.

Conventus focuses the new website on providing easy access to information and tools that help physicians and their teams with the daily challenges of managing a practice. Many resources are made available exclusively to Conventus insured members, but there is publicly available knowledge for physicians, practice administrators and brokers.

“Considering the medical professional liability insurance space is crowded in New Jersey, it is crucial for successful brokers to stand out by demonstrating value beyond just standard insurance offerings,” said Amy Berezein, Conventus president. “Brokers must leverage comprehensive solutions and industry resources that provide them with a competitive advantage in today’s competitive medical professional liability insurance space.”

The website features educational solutions to help physicians, practice administrators and brokers navigate today’s rapidly changing healthcare environment. The site’s Knowledge Center is organized into logical components to enable users to acquire the information that they need as quickly and effectively as possible.

• Clinical Resources provide valuable information and tools designed to help practices address clinical issues, enhance patient safety, maximize office workflow, and find solutions for measuring and realizing efficiencies in the office.

• Operational Resources help busy medical professionals keep their practices current on the latest regulations impacting operations.

• Compliance Resources provide comprehensive service support, training, and policies/procedures focused on the development of corporate compliance programs, such as OSHA, HIPAA, and Fraud and Integrity.

• Value-Based Care and Quality Payment Program resources support practices implementing processes to succeed in their transformation to value-based care.

• Webinar Resources are online educational programs to help practice teams understand emerging risks and learn practical mitigation strategies.

• The Conventus 24/7 Practice Advice Hotline is an exclusive, confidential, and free hotline for insured members and their staff to receive real-time advice and consultation.

• Educational Briefs include risk alerts and e-newsletters focused on providing up-to-date information on current healthcare trends and key issues that impact physician practices.

• eLearning allows for online Continuing Medical Education (CME) and Maintenance of Certification (MOC) approved courses for more than 25 specialties.

August 19, 2020 by matray

Misdiagnosis and Delayed Diagnosis. According to a 2018 report by the medical professional liability insurance company Coverys, Diagnostic Accuracy: Room for Improvement, diagnosis-related failures are the single largest root cause of medical malpractice claims and result in indemnity payments higher than the next five highest categories combined. More than half (54%) of diagnosis-related claims are considered high-severity cases — with 36% of those cases resulting in death.

Medication Errors. The U.S. Food & Drug Administration estimates that as many as 1.3 million patients are harmed annually as a result of preventable medication errors. According to a 2016 benchmark study of medication errors conducted by CRICO Strategies, one-in-nine medical malpractice claims involve a medication error.

Surgical errors.  According to a 2020 white paper by Coverys, Surgery Risks: Through the Lens of Liability Claims, 25% of the more than 10,000 closed medical malpractice claims analyzed by the medical professional liability insurer cited a surgical allegation. Of those, 78% of surgical allegations were related to practitioner performance during the surgery itself; 47% of those claims from more than 50 surgical specialties involve just three specialties: General Surgery (22%), Orthopedic Surgery (17%), and Neurosurgery (8%).

Childbirth injuries. Medical injuries during child birth are among the most expensive to indemnify. According to the Birth Injury Justice Center, approximately 7 out of every 1,000 children born in the United States will suffer a birth injury. A significant percentage of birth injuries are avoidable and occur because of medical negligence or physical trauma.

Anesthesia injury. According to a 2020 anesthesia closed-claim study by The Doctors Company, the mean indemnity for anesthesia injuries increased by 12.5% since 2013 — from $373,593 between 2007-2012 to $420,250 between 2013-2018.

August 10, 2020 by matray

A.M. Best has affirmed The Doctors Company’s financial strength rating (FSR) of A and the company’s long-term issuer credit rating (ICR) of “a+” and stated the outlook of these ratings is stable.

These ratings apply to the parent group, The Doctors Company, An Interinsurance Exchange, and the following subsidiaries: TDC Specialty Insurance Company, TDC National Assurance Company, TDC Special Risks Insurance Company, and The Doctors Company Risk Retention Group, a Reciprocal Exchange.

The FSR of A is assigned only to select companies with excellent ability to meet ongoing insurance obligations. The “a+” ICR is assigned to entities that have an excellent ability to meet their ongoing senior financial obligations.

“These ratings from A.M. Best reflect the strength and stability of our company, even under the economic impacts of COVID-19,” said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company. “Our financial strength helps us better serve our members and is integral to our mission to advance, protect, and reward the practice of good medicine.”

July 22, 2020 by matray

Pinnacle Actuarial Resources, a property and casualty actuarial consulting firm, today announced the appointment of consultants Kendra Letang and Christina Negley.

“Kendra and Christina are tremendous additions to our consulting team,” said Joe Herbers, Pinnacle managing principal. “They are accomplished actuarial professionals with deep knowledge of our industry. They also share exceptional communications skills, which will drive great value for our clients.”

Letang joins Pinnacle as a consulting actuary from Uber Technologies. She has morethan 12 years of actuarial and insurance experience in several practice areas for both corporate and consulting organizations. Her areas of expertise include pricing and financial analyses and providing strategic actuarial support for insurance operations.

Negley joined Pinnacle in 2015 and has extensive experience in assignments, including loss reserving, loss cost projections and funding and captive feasibility studies.

Both Letanf and Negley are associates of the Casualty Actuarial Society (ACAS) and members of the American Academy of Actuaries (MAAA). Letang will be located in Pinnacle’s San Francisco’s office; Negley will continue to be based in the firm’s Bloomington, Ill., office.

“We are extremely pleased with Kendra and Christina’s appointments. They add to the considerable bench strength of our consulting team, and they’ll make many contributions to the success of our firm and our clients,” Herbers said.

June 22, 2020 by matray

Medical Liability Monitor presents a very timely webinar...

Forecasting Medical Liability Claims in the Age of COVID-19: How to Mitigate Risk and Reduce Payouts from Potential Negligence Claims

DATE: Wednesday, June 24, 2020

TIME: 2 p.m. EDT; 1 p.m. CDT; 12 p.m. MDT; 11 a.m. PDT

PLACE: Your computer

COST: $197. Registration includes access for up to five participants in multiple locations.

REGISTER NOW: https://tinyurl.com/yb7ksq22

As a med-mal insurance executive or hospital risk manager, you’re already thinking about the liabilities and potential payouts that will arise from the current COVID-19 pandemic. And because malpractice claims are often filed years after the fact, the truth is, you may not know for a while what kind of claims are headed your way.

But the reality is these claims are coming. The question is what will they look like? Which ones will the plaintiff’s bar most likely exploit? And as an insurer or risk manager, what can you do now to help mitigate the claims you expect to see down the road?

Get answers to these questions and more when you register to attend “Forecasting Medical Liability Claims in the Age of COVID-19: How to Mitigate Risk and Reduce Payouts from Potential Negligence Claims” on Wednesday June 24, 2020. Listen as four professionals in the know — a healthcare legal expert, actuary, med-mal insurance professional, and a hospital risk manager — provide insights into the types of claims your insureds are likely to face as a result of the pandemic. And while you may not see these claims for a while, you and your insureds will need this time to develop strategies that can reduce risk and potential payouts.

Here is just some of what you’ll learn during this in-depth 90-minute conference:

• A breakdown of malpractice risks associated with the COVID-19 crisis by type of provider and steps your insureds can take to mitigate them.

• Documentation is vital, especially in a pandemic: What your insureds need to include and why.

• Why governor-granted liability protections for frontline healthcare workers might not hold up under legal challenges.

• A review of the risks that hospitals, physicians’ offices, nursing homes, and clinics need to address to safely open for patients.

• How to avoid delay-in-treatment or delay-in-diagnosis claims from patients whose procedures were postponed or cancelled due to the COVID-19 emergency.

• Why a slower legal system might benefit your insureds and how court closures could change the way claims are filed.

• How your insureds adoption of — or failed attempts at — telemedicine during the pandemic could create problems for them down the road.

…and much more!

REGISTER NOW: https://tinyurl.com/yb7ksq22

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.

June 16, 2020 by matray

AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of the members of MedPro Group (MedPro). These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN) and its affiliates: Princeton Insurance Company (Princeton, NJ); PLICO, Inc. (Oklahoma City, OK); Wellfleet Insurance Company (Fort Wayne, IN); and Wellfleet New York Insurance Company (Flushing, NY); as well as MedPro’s two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings remains stable.

The ratings reflect MedPro’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings also acknowledge MedPro’s strongest risk-adjusted capitalization, long-term profitable operating performance and the leading market position it maintains in the medical professional liability (MPL) sector. Additionally, the ratings consider the group’s substantial distribution capabilities, prudent claims-handling philosophy and culture of maintaining a margin of safety. Furthermore, the ratings benefit from the explicit and implicit financial support provided by its affiliate, National Indemnity Company, and MedPro’s ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK A and BRK B], which includes reinsurance programs, investment opportunities and capital support.

Partially offsetting these positive rating factors are the inherent challenges associated with being a predominately monoline MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislation (i.e., tort reform), increasing loss cost trends and regulatory risk. At the same time, AM Best recognizes the organization’s strong management team, broad premium base and jurisdictional diversity, which have resulted in MedPro outperforming its peers over the longer term.

In 2020, the group has experienced balance sheet volatility due to equity market devaluations related to COVID-19. The group’s large allocation in common stocks exposes them to significant volatility. However, the group is well-positioned to accept this risk due to their low underwriting leverage and the investment managers’ historical trend of success in volatile markets. AM Best also conducted stress tests on the group’s risk-adjusted capitalization, which incorporate multiple assumptions related to the market impact of COVID-19. MedPro performed well under all stressed scenarios, and management believes the impact of COVID-19 will be manageable.

Downward rating pressure may result from a material decrease in risk-adjusted capitalization. Downward rating pressure also may result should the group’s relationship with Berkshire Hathaway Inc. or National Indemnity Company change, which also would result in a diminution of the business profile.

June 15, 2020 by matray

Berkshire Hathaway Specialty Insurance announced that it has promoted Austin Elkin to senior care leader, Healthcare Professional Liability in the U.S. Austin takes over the role from Mary Nolan, who is currently overseeing the launch of BHSI’s new Senior Care Primary Auto offering, but will retire in September following a 30-year career.

“Austin has played a key role in establishing and expanding our healthcare and senior care portfolio, while simultaneously building our loyal customer base. We are excited to elevate him to a leadership role on our growing team,” said Leo Carroll, head of U.S. Healthcare, BHSI. “Many thanks to Mary for her numerous contributions to BHSI and to the healthcare industry. Mary has certainly left her mark, and we wish her all the best in her well-deserved retirement.”

Elkin joined BHSI in 2013 as senior underwriter, Healthcare Professional Liability. He previously served as a large account underwriter on the Healthcare team at Zurich Insurance Group. Elkin will continue to be based in BHSI’s office in Atlanta and can be reached at (770) 625-2513 or austin.elkin@bhspecialty.com.