| The Doctor’s Advocate | Third Quarter 2006 |
Marking a Milestone in Our History
In 1975, California was immersed in a medical malpractice insurance crisis that imperiled the state’s entire health care system. Awash in lawsuits and skyrocketing judgments, commercial insurance companies raised rates by extraordinary amounts or notified physicians that their coverage would not be renewed.
As a result, thousands of physicians refused to continue practicing until the state addressed the crisis. In May 1975, then–Governor Jerry Brown called a special session of the legislature. Spear-headed by the California Physicians Crisis Committee and other leading medical groups, doctors secured passage of the Medical Injury Compensation Reform Act (MICRA), the landmark legislation that has become the national model for effective and durable tort reform.
From this achievement, The Doctors Company emerged as an entirely new type of insurance carrier: a doctor-owned interinsurance exchange. When the concept was first proposed, many believed that the venture was doomed to failure. Despite that uncertainty, some 450 physicians felt strongly enough to subscribe as members during the company’s initial solicitation in 1976.
It is a testament to the foresight of our charter members that they were willing to pledge substantial funds to participate in the development of The Doctors Company. Thanks to their support, the Exchange received its Certificate of Authority from the California State Department of Insurance on April 15, 1976. At the end of that first year, our membership surpassed 2,000 physicians, and our total assets reached $12.5 million.
Our accomplishments reached doctors and medical societies in other states, and we responded to their inquiries with solutions. In 1978, we established professional liability programs in Nevada and Wyoming; by 1994, we were licensed in 45 states. Now, with 27,000 members and $1.9 billion in total assets, we are the nation’s leading physician-owned medical malpractice insurance provider.
As the company marks this milestone in its history, we recall the extraordinary leap of faith taken by our charter members 30 years ago. Clearly, that trust has been rewarded.
We will continue to earn our members’ trust every day as we deliver excellent service, superior value, and the industry’s most aggressive claims defense. We have an unmatched record of supporting medical liability reform and ensuring that the doctor’s voice is heard at both state and national levels.
We remain true to our founding principles, and our mission is clear: We will continue to advance and protect the practice of good medicine.
To you—the doctors of The Doctors Company—we extend our appreciation for making this milestone possible.
About the Author
Richard E. Anderson, MD, FACP, a medical oncologist, is chairman and chief executive officer of The Doctors Company. A member of the American Society of Clinical Oncology and a fellow of the American College of Physicians, Dr. Anderson was a clinical professor of medicine at the University of California, San Diego, and is past chairman of the Department of Medicine at Scripps Memorial Hospital, where he served as senior oncologist for 18 years. Dr. Anderson is the editor of a book on medical malpractice, and his commentaries on legal reform and defensive medicine have been widely cited. He is the 2004 recipient of the PLUS Foundation Award for Outstanding Leadership in Healthcare Professional Liability.
The Doctor’s Advocate is published by The Doctors Company to advise and inform its members about loss prevention and insurance issues.
The guidelines suggested in this newsletter are not rules, do not constitute legal advice, and do not ensure a successful outcome. They attempt to define principles of practice for providing appropriate care. The principles are not inclusive of all proper methods of care nor exclusive of other methods reasonably directed at obtaining the same results.
The ultimate decision regarding the appropriateness of any treatment must be made by each health care provider in light of all circumstances prevailing in the individual situation and in accordance with the laws of the jurisdiction in which the care is rendered.
The Doctor’s Advocate is published quarterly by Corporate Communications, The Doctors Company. Letters and articles, to be edited and published at the editor’s discretion, are welcome. The views expressed are those of the letter writer and do not necessarily reflect the opinion or official policy of The Doctors Company. Please sign your letters, and address them to the editor.