The Doctors Company Completes Acquisition of Hospital Insurance Co., FOJP Service Corp. in New York
August 1, 2019by
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."