Vital Signs - November 2007

Doctors Need Insurance, Too

A Program For Doctors, By Doctors

There is no doubt that the availability of medical malpractice insurance coverage has improved greatly in the past few years for doctors in Nevada. In the past year alone, rates have not only stabilized but decreased 10 to 25 percent. Nevada has seen the formation of a new self insurance program for doctors, by doctors. Premier Physician Insurance Company (PPIC) is a risk retention group – a liability insurance company owned by its members, whom face similar liability exposures.

PPIC was formed by women’s care specialist Dr. Warren Volker to provide Nevada physicians with stabilized medical malpractice rates. In 2001, the majority of malpractice liability insurance carriers left Nevada, leaving the remaining carriers to respond to a major coverage shortage. “When St. Paul Insurance Company announced they were leaving Nevada in 2000, it set off the biggest professional liability crisis in U.S. history since the ‘70s,” said Dr. Warren Volker, chairman of PPIC. Medical malpractice liability insurance rates continued to climb for most physicians despite legislative limits on damages.

As new companies enter the market, the state is seeing some of the same tactics as before. New companies come in offering under-cut rates to lure doctors from their current companies, Volker said. He admits that in the short run, these rates are good for doctors, but as companies take this approach they are forced to increase rates, playing “catch-up.” PPIC, which is owned and controlled by a broad base of physicians, seeks to insure quality physicians who practice evidence based medicine and seek to reduce risk. The company is committed to deliver consistency, continuity and stability through effective risk management, financial liability protection and other meaningful services for the benefit of its members.

Doctors should not insure themselves based on price alone. “When a doctor is looking to purchase malpractice insurance, it is usually a last minute decision” said Volker. “That decision is almost always determined by price.” While exploring options to create a physician-owned medical liability company, Dr. Volker focused on two key components: reinsurance and operating costs. Reasonable operating costs were essential to maintain a viable vehicle for physicians as sufficient reinsurance was necessary to ensure the stability of the company. The mission of PPIC is to protect its patients – doctors. By providing member physicians and their practices with an innovative medical malpractice liability insurance that benefits not only physicians, but patients as well, protection is accomplished.

Capstone Management Group, LLC manages the underwriting for PPIC which protects the company and its policyholders. Capstone works closely with the physicians, understanding their needs in order to meet the goal of PPIC – to bring a fair and logical approach to medical malpractice liability underwriting.