Medical systems have historically been the quickest to adopt captives to control their employee healthcare costs. From regional hospitals with a single plan, to large hospital systems with multiple plans, the systems have found that a captive-based structure used at the parent level enables a more efficient purchase with uniform protection across plans.
Changes in the physician medical malpractice insurance landscape — rising premiums, varying underwriting criteria, and fewer options — have physician groups rethinking their approach to professional liability protection, according to a recent webinar from Guy Carpenter-affiliate Marsh.
During Marsh’s recent webcast, “Captives – Decision Points and Timing for Physician Rollups,” panelists provided in-depth discussion of captive formation including options and benefits. Conversation focused on:
- Current state of the physician medical malpractice market.
- Feasibility process including key considerations for evaluating a captive and the different types of structure available.
- Implementation including steps in the application for licensure and legal entity formation.
- Operations including governance committee structure and the role of the captive manager.
- Linda Jones, Physicians Center of Excellence Leader, Marsh
- Art Koritzinsky, Captive Advisory Leader, Americas, Marsh Captive Solutions
- Jesse D. Crary, Esq., Shareholder, Primmer Piper Eggleston & Cramer PC
Guy Carpenter is working to help reinsurers and the health insurance market better serve the needs of clients by curating partnerships with capital and service providers that highlight the advantages that each party brings.