Captive insurance companies in health care

Perspect Healthc Risk Manage. 1992 Spring;12(2):8-11. doi: 10.1002/jhrm.5600120205.

Abstract

A health care system or individual hospital should consider establishing a captive insurance company if any one of the following situations exist: The organization's professional liability program is arranged with a self-insured retention of $500,000 or more, or consideration is being given to such an arrangement. A trust fund has been established for a self-insured exposure--professional liability, workers' compensation, or employee benefits. A portion of the organization's professional liability excess insurance program is arranged with an insurer that uses a fronting insurer. The organization currently sponsors, or is considering sponsoring, a physicians' liability insurance program for medical staff members. If any of those situations exist, a comprehensive feasibility study should be undertaken, preferably by an independent, objective organization that does not have a financial interest in the outcome of the study.

MeSH terms

  • Costs and Cost Analysis
  • Financial Management, Hospital*
  • Insurance Carriers / economics*
  • Insurance, Liability / economics*
  • Risk Management / economics*
  • Taxes / legislation & jurisprudence
  • United States