September 26, 2019 by matray

AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of certain members of the ProAssurance Group. Concurrently, AM Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” from “a+” of Eastern Alliance Insurance Company (Lancaster, PA) and its affiliates that are now a part of ProAssurance Group. The outlook of these Credit Ratings (ratings) have been revised to negative from stable. Additionally, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of PACO Assurance Company, Inc. (PACO) (Springfield, IL). The outlook of these ratings remain stable.  (See below for a detailed listing of the companies ratings.)

All companies are indirect subsidiaries of ProAssurance Corporation (PRA).

Along with these rating actions, AM Best has revised the outlooks to negative from stable and affirmed the Long-Term ICR of “a-” of PRA and the Long-Term Issue Credit Rating (Long-Term IR) of “a-” on PRA’s $250.0 million 5.30% 10-year senior unsecured notes, due 2023. AM Best also has affirmed the indicative Long-Term IRs under the shelf registration of “a-” on the senior unsecured debt, “bbb+” on the senior subordinated debt and “bbb” on the preferred stock of PRA.

The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The negative outlooks reflect the negative trend in the ProAssurance Group’s operating performance in recent years, which has resulted in underwriting and operating metrics falling to a level that, although still solid, is more in-line with its peers in the medical professional liability (MPL) industry, instead of out-performing them. While the group continues to report favorable prior period reserve development, the magnitude of favorable development has declined in recent years and AM Best expects this trend to continue, especially given concerns with regard to rising loss costs in the MPL industry.

The group’s balance sheet strength assessment continues to reflect its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as the strength of its reserves and the quality of its investments. The ratings also consider the ProAssurance Group’s market position as one of the leading MPL insurers in the United States, as well as its diversification across multiple disciplines, geographic areas and in its other lines of business. These ratings also acknowledge the depth and breadth of the group’s ERM programs and policies. In addressing challenges in a prolonged soft MPL market, management has leveraged its talent, knowledge base and market position to introduce innovative alternatives.

The upgrade of the Eastern Alliance Insurance Company and its affiliates reflect their status as members of the ProAssurance Group due to their strategic importance as successful specialty workers compensation writers, common management and significant earnings contributions.

The ratings of PACO reflects its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also reflect lift from the lead rating unit, ProAssurance Group, based on implicit support.

PACO’s ratings reflect its strongest risk-adjusted capital position and generally improved operating performance since being acquired by PRA in 2009. The company’s underwriting has been modestly profitable, benefiting from favorable industry trends in claims and losses in a lower-risk line of business during a softening market. PACO broadens PRA’s MPL lines of business to include chiropractors and acupuncturists, another niche medical specialty with favorable loss parameters.

Each of the rating units discussed above also benefits from the financial flexibility provided by PRA, the ultimate parent. PRA’s financial leverage is conservative, its interest coverage is solid and it holds cash and short-term investments outside of the insurance operating companies that are available for use without regulatory approval. At the same time, surplus growth at most rating units has been limited over the past five years by the payment of significant dividends to PRA, which they have utilized to pay shareholders’ dividends and repurchase company stock. Nonetheless, management remains committed to maintaining capital at the rated entities at levels commensurate with their ratings.

The outlooks have been revised to negative from stable and the FSR of A+ (Superior) and the Long-Term ICR of “aa-” have been affirmed for the following members of the ProAssurance Group:

• ProAssurance Casualty Company
• ProAssurance Indemnity Company, Inc.
• ProAssurance Specialty Insurance Company, Inc.
• Medmarc Casualty Insurance Company
• Noetic Specialty Insurance Company
• Podiatry Insurance Company of America
• ProAssurance American Mutual, A Risk Retention Group


The FSR has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” from “a+” with the outlooks revised to negative from stable for Eastern Alliance Insurance Company and its affiliates:

• Allied Eastern Indemnity Company
• Eastern Advantage Assurance Company

September 24, 2019 by matray

The American Medical Association (AMA) recognized 22 healthcare organizations as the first recipients of the inaugural Joy in Medicine Recognition. The new distinction offered by the AMA recognizes healthcare organizations that have committed to efforts that improve physician satisfaction and reduce burnout.

“It is a great honor to recognize the outstanding achievements of the organizations selected for the Joy in Medicine Recognition,” said AMA Board Chair Jesse M. Ehrenfeld, MD, MPH. “These organizations are true leaders in promoting physician well-being and continue to make a difference in the lives of our nation’s health are workforce.”

Candidates and their achievements to reduce physician burnout were evaluated against criteria demonstrating competencies in commitment, assessment, leadership, efficiency of practice environment, teamwork and support.

The recipients of the inaugural Joy in Medicine Recognition are:

Ascension Medical Group, St. Louis, Mo.
Beth Israel Deaconess Medical Center, Boston, Mass.
Boston Medical Center, Boston, Mass.
Cleveland Clinic, Cleveland, Ohio
Geisinger Health System, Danville, Pa.
Gould Medical Group, Modesto, Calif.
Heartland Health Centers, Chicago, Ill.
Icahn School of Medicine Mount Sinai, New York, N.Y.
Mayo Clinic, Rochester, Minn.
National Capital Region Military Health System, Bethesda, Md.
Northwestern Medicine, Chicago, Ill.
Oak Street Health, Chicago, Ill.
Ochsner Health System, New Orleans, La.
Southern California Permanente Group, Calif.
St. Vincent Medical Group, Ind.
Stanford Health Care, Palo Alto, Calif.
University of Colorado School of Medicine, Aurora. Colo.
UNC Health Care, Chapel Hill, N.C.
UPMC, Pittsburgh, Pa.
University of Rochester Medical Center, Rochester, N.Y.
Virginia Mason Medical Center, Seattle, Wash.
Wake Forest School of Medicine, Winston-Salem, N.C.

The Joy in Medicine Recognition Program is a component of the AMA’s Practice Transformation Initiative, an ambitious new course of action to advance evidence-based solutions that fill the knowledge gap in effective solutions to the physician burnout crisis.

“The Joy in Medicine Recognition Program is designed by the AMA to serve as a guide and catalyst for organizations who are interested, engaged and committed in efforts to fight the root causes of physician burnout,” said Ehrenfeld said. “The AMA is optimistic that the program will serve as a roadmap to reduce burnout within organizations and unite the health care community around systematic changes that will energize physicians in their life’s work of caring for patients.”

The founding of the Joy in Medicine Recognition Program was influenced by three timely and prominent sources — a call-to-action blog post in Health Affairs titled Physician Burnout is a Public Health Crisis: A Message to our Fellow CEOs, a research article published in JAMA Internal Medicine titled The Business Case for Investing in Physician Well-being and the multi-stakeholder effort resulting in the Charter on Physician Well-being.

The AMA continues to work on every front to address the physician burnout crisis. Through its research, collaborations, advocacy and leadership, the AMA is working to make the patient‐physician relationship more valued than paperwork, preventive care the focus of the future, technology an asset and not a burden, and physician burnout a thing of the past.

September 11, 2019 by matray

CMIC Group announced that Michael G. Roque has joined the CMIC Group team as the new Chief Operating Officer.

Roque has more than 20 years of experience in medical professional liability, working on both the broker and carrier sides. Most recently, he served as vice president of Business Development at NORCAL Mutual Insurance Co. Roque holds a BBA in Risk Management & Insurance from Temple University.

“We are very pleased to have Michael join our Team,” said Stephen J. Gallant, chief executive officer of CMIC Group. “His knowledge and experience within the MPL industry will be a tremendous asset for the company. We look forward to his leadership and insight as we continue to grow the company.”

September 5, 2019 by matray

The Board of Directors of ProAssurance Corp. has declared a cash dividend of $0.31 per common share, payable on Oct. 11, 2019, to shareholders who own our stock as of Sept. 27, 2019.

The company's dividend policy anticipates a total annual dividend of $1.24 per share, to be paid in equal quarterly installments. However, any decision to pay future cash dividends will be subject to the Board’s final determination after a comprehensive review of the ProAssurance's financial performance, future expectations and other factors deemed relevant by the Board.

August 29, 2019 by matray

The Kansas Department of Insurance has issued the following news release:

On Aug. 20, 2019, the Shawnee County District Court in Topeka, Kan., signed an order placing Physicians Standard Insurance Co. (PSIC) in rehabilitation under the supervision of the Kansas Insurance Department. The Order of Rehabilitation (Order) was entered with consent of the Board of Directors of PSIC. Pursuant to the Order, Kansas Insurance Commissioner Vicki Schmidt will serve as Rehabilitator.

“A primary responsibility of the Kansas Insurance Department is protecting consumers by ensuring companies are financially solvent and capable of paying claims,” Commissioner Schmidt said. “The Department determined PSIC’s financial condition had deteriorated to the point it was necessary to take the extraordinary step of obtaining a court order to give the Department the authority needed to protect the consumers and policy holders of PSIC. I remain fully committed to rehabilitating PSIC and continuing our responsibility of protecting consumers.”

A letter from the Commissioner to policyholders on Aug. 23, 2019, states, in part, “[t]he Order allows the Commissioner, as Rehabilitator, to reform and revitalize PSIC to protect policyholders.” Under the Order, PSIC continues to operate and current policies remain in effect.

As of the date of the Order, PSIC provided medical malpractice insurance for approximately 484 medical professionals in Kansas and Missouri. Most of the policyholders are in Missouri with just a few in Kansas.

For further information, including the full Order for Rehabilitation, Frequently Asked Questions, and an Open Letter to Policyholders, please visit https://www.ksinsurance.org/department/LegalIssues/PSIC-Rehabilitation.php. Non-media questions can be sent to the Department at KID.PSIC@ks.gov.

August 27, 2019 by matray

ProAssurance Corp. president and chief executive officer Edward L. Rand, Jr., will discuss the medical professional liability insurance company’s recently reported results, current market trends and long-term strategy during a question and answer session with investors at the Keefe, Bruyette & Woods 2019 Insurance Conference on Thursday, Sept. 5, 2019, at approximately 10:10 a.m. ET.

The presentation will be streamed live over the internet. The webcast will be available through the ProAssurance investor home page: http://investor.proassurance.com. The presentation will also be available directly from: http://wsw.com/webcast/kbw49/pra. Replays will be available from both websites for at least 90 days after the event.    

August 21, 2019 by matray

The Doctors Company announced the appointment of David L. Feldman, MD, MBA, CPE, FAAPL, FACS, as chief medical officer (CMO) of The Doctors Company Group. In this new role, Feldman will lead the group’s education efforts in — and be the primary spokesperson for — trends and issues on patient safety and risk management. Feldman succeeds David Troxel, MD, who retired after more than 13 years as CMO. Feldman will continue to serve as senior vice president and CMO at Healthcare Risk Advisors (HRA), formerly Hospitals Insurance Co. and FOJP Service Corp., which was recently acquired by The Doctors Company Group. Under his leadership, HRA provides resources and a collaborative environment designed to minimize claims and lower premiums for HRA clients by preventing patient harm, enhancing teamwork and communication, and improving documentation. Prior to HRA, Feldman was vice president for patient safety, vice president of perioperative services and vice chairman of the department of surgery at Maimonides Medical Center (Maimonides) in Brooklyn, N.Y. He implemented numerous patient safety initiatives, including the use of the World Health Organization Surgical Safety Checklist. As past president of the Maimonides medical staff, Feldman was instrumental in the creation and implementation of a hospital-wide Code of Mutual Respect and physician peer review committee. “We are pleased to welcome David to The Doctors Company Group,” said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company. “His leadership, depth of medical experience and commitment to optimal clinical performance and patient outcomes make him the ideal candidate to represent our clinical perspective.” Feldman serves on the steering committee of the American College of Surgeons (ACS) for retraining and retooling of practicing surgeons. He has served on the ACS committee on perioperative care and as vice chairman of the ACS collaborative task force for the development of high-performance teams in surgery. He also served as the ACS liaison to the Association of periOperative Registered Nurses recommended practices committee. Feldman is a master TeamSTEPPS trainer and a certified trainer in Crucial Conversations and Crucial Confrontations. He received a Bachelor of Arts degree and Doctor of Medicine degree from Duke University, completed training in general surgery at The Roosevelt Hospital (now Mount Sinai West) and plastic surgery at Duke University Medical Center. He earned a Master of Business Administration degree from New York University. “I am excited to join The Doctors Company Group and to serve as an ambassador to the medical profession on patient safety issues,” Feldman said. “I am honored to contribute to the future-looking vision for The Doctors Company’s patient safety organization that supports the needs of the business and the mission of advancing the practice of good medicine.” The Doctors Company Group includes The Doctors Company and three wholly owned strategic business units: TDC Specialty Underwriters, which provides liability solutions for a variety of healthcare organizations and medical facilities; Medical Advantage Group, an innovator in maximizing health plan and physician clinical and financial performance in value-based contracting; and HRA, a premier provider of medical malpractice insurance and risk management advisory services to physicians and hospitals in New York.

August 20, 2019 by matray

Pinnacle Actuarial Resources announced that Ken Hawkins, ACAS, MAAA, has joined Pinnacle as a consulting actuary in the firm’s Bloomington, Ill., home office.

Hawkins returns to Pinnacle after three years of leading pricing and rate implementation for a regional property/casualty insurer’s commercial lines products.

“We are very pleased to welcome Ken back to Pinnacle,” managing principal Joe Herbers said. “Ken has tremendous breadth and depth of experience and will bring a highly relevant, customer-focused approach to the work he does for our clients.”

Hawkins has more than 13 years of experience in the property/casualty practice area. His expertise includes loss reserving, funding studies, cost-allocation mechanisms, loss-cost projections, captive-feasibility studies, commercial-lines ratemaking, financial analysis of insurance companies, deductible analysis and simulation methods. He has extensive experience developing simulations that utilize company-specific data to calculate risk margins.

Hawkins holds Associate of the Casualty Actuarial Society (ACAS) and Member of the American Academy of Actuaries (MAAA) credentials and received his Bachelor of Science degree in actuarial science from the University of Illinois, Urbana-Champaign.

August 8, 2019 by matray

Abstract: http://annals.org/aim/article/doi/10.7326/M19-2441

The American College of Physicians (ACP) and the nation’s leading physician and public health organizations called for policies to reduce firearms-related injuries and deaths in the U.S. in a new call-to-action, “Firearm-Related Injury and Death in the United States: A Call to Action from the Nation’s Leading Physician and Public Health Professional Organizations,” published today in the Annals of Internal Medicine.

“We are living in a world where gun violence is becoming increasingly common, and as physicians, we have a responsibility to address this public health crisis and to keep our patients safe and healthy,” said Robert McLean, MD, FACP, president, ACP.

ACP, together with the American Academy of Family Physicians, American Academy of Pediatrics, American College of Surgeons, American Medical Association, American Psychiatric Association, and the American Public Health Association, delineate the following in a new policy paper:

• Comprehensive criminal background checks for all firearm purchases, including sales by gun dealers, sales at gun shows, private sales and transfers between individuals with limited exceptions should be required.

• Research into the causes and consequences of firearm violence and unintentional injuries and deaths to help identify, test, and implement strategies to reduce these unnecessary injuries and deaths is urgently needed.

• Currently, federal laws prohibiting domestic abusers from accessing firearms apply only to spouses and not dating partners— this loophole in the background check system must be closed. Offenders who have been found guilty of a crime of violence against a family member or intimate partner, including dating partners, cohabitants, stalkers, and those who victimize a family member other than a partner or child should be reported to the National Instant Criminal Background Check System and be prohibited from purchasing or possessing firearms.

• Storing firearms safely and securely is essential to reducing the risk of unintentional or intentional injuries or deaths from firearms, particularly in homes with children, adolescents, people with dementia, people with substance use disorders, and the small subset of people with serious mental illnesses that are associated with greater risk of harming themselves and others.

• The great majority of those with a mental illness or substance use disorder are not violent; however, screening, access and treatment for mental health disorders play a critical role in reducing self-harm and interpersonal violence. The organizations represented in this paper support improved access to mental health care and caution against broadly including all individuals with a mental health or substance use disorder in a category of individuals prohibited from purchasing firearms.

• Extreme risk protection order (ERPO) laws, which allow families and law enforcement to petition a judge to temporarily remove firearms from individuals at imminent risk of using them to harm themselves or others, should be enacted in a manner consistent with due process.

• Physicians can and must be able to advise their patients on issues that affect their health, including counseling at-risk patients about mitigating the risks associated with firearms in the home and firearm safety.

• The magnitude and frequency of mass attacks are unacceptable to our organizations. A common-sense approach to reducing casualties in mass shooting situations must effectively address high-capacity magazines and firearms with features designed to increase their rapid and extended killing capacity.

For more than two decades, ACP has advocated for the urgent need for impactful legislation that would reduce firearms-related injuries and deaths, and our policy paper sparked the “This Is Our Lane” movement of physicians speaking out on gun violence prevention. Additionally, in light of last weekend’s shootings in El Paso, Texas and Dayton, Ohio, ACP released a statement expressing our frustration and sadness.

“We need to protect our patients, their families, and our communities across the country from needless injuries and deaths, it’s time for the U.S. to put firearms violence prevention at the forefront of the health care conversation,” said Dr. McLean. “We are committed to working with all stakeholders, and continuing to speak out, to address this public health threat.”

All firearms-related health policy content published in Annals of Internal Medicine is free to the public at http://annals.org/aim/pages/firearm-related-content.

August 1, 2019 by matray

The Doctors Company has completed the purchase of Hospitals Insurance Company (HIC), a New York State admitted and licensed insurance company, and FOJP Service Corp., a New York service organization that provides third-party comprehensive insurance and risk management advisory services to HIC-insured hospitals. The purchase price is $650 million, subject to closing adjustments.

"We are excited to bring our mission to advance, protect, and reward the practice of good medicine to an even greater number of healthcare providers in New York," said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company. "Our mission is beautifully aligned with the great work of HIC and FOJP."

Proceeds from the transaction will be returned to the not-for-profit hospitals that owned and founded HIC and FOJP more than 30 years ago — The Mount Sinai Hospital and Beth Israel Medical Center (Mount Sinai), Montefiore Health System (Montefiore) and Maimonides Medical Center (Maimonides).

"Mount Sinai, Montefiore and Maimonides are indispensable anchors of New York's healthcare system, and this transaction will not only strengthen their ability to provide high-quality care to their communities, but also make capital improvements that will benefit millions of New Yorkers," said Greater New York Hospital Association president Kenneth E. Raske.

The close of this transaction is also the inception of Healthcare Risk Advisors (HRA), a new business unit within the TDC Group, which will succeed FOJP and focus on third-party comprehensive insurance and risk management advisory services, including management of the self-insured programs of large healthcare organizations in New York and beyond.

HIC will continue to exist as an admitted New York-domiciled insurer providing coverage for hospitals, physicians affiliated with HIC's insured hospitals, and long-term care facilities and social services agencies. HIC and FOJP employees will become part of HRA and continue to provide the same outstanding services to HIC, the member hospitals, longterm care facilities and social services agencies as prior to the transaction.

HRA and HIC will be led by Noeleen Doelger as chief operating and financial officer and Robert A. Kauffman as president. Walter Harris, who served as president and CEO of HIC and FOJP prior to the transaction, will assume a consulting role with the TDC Group and report to Dr. Anderson.

"This transaction provides a platform on which to expand our self-insured programs to additional physicians, hospitals, and healthcare systems," said Kauffman. "At the same time, we remain steadfast in our commitment to provide our founding hospitals with the excellent service that supports what they do best — providing quality healthcare to their communities."