Pennsylvania Healthcare Providers Insurance Exchange has filed an application with the Commonwealth of Pennsylvania Insurance Department to begin offering medical malpractice insurance coverage to physicians and hospitals in the fall of 2002.
The organization will provide physicians and hospitals in Pennsylvania with a new alternative to obtaining much needed medical malpractice insurance coverage. Known technically as a reciprocal insurance exchange, Pennsylvania Healthcare Providers Insurance Exchange is a program in which participants in the plan share the insurance risk. Essentially, each participant is also an owner who contributes capital in addition to paying premiums.
The program is designed to attract physicians and hospitals that have a strong record of sound clinical practice and are willing to assume some risk as well as a certain amount of practice oversight. The program’s objective is to assure that Pennsylvania’s physicians and hospitals have adequate access to medical malpractice insurance over the long term.
The Exchange will be based in Harrisburg and Thomas Gaudiosi will serve as president and CEO.
“Recognizing a market need for medical malpractice insurance coverage in Pennsylvania, we began exploring approaches that would serve the needs of physicians and hospitals, their patients, and be synergistic with our overall business goals,” said Sheldon Bonovitz, chairman of Duane Morris LLP, which will have a major equity position in the company created to manage the Exchange. “This program is a groundbreaking effort. We are able to leverage some of the best legal and insurance minds in the industry to create an alternative business opportunity that also satisfies a significant public health need.”
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