Questions and Answers for Agents and Brokers of The Doctors Company
July 31, 2019—The Doctors Company, the nation’s largest physician-owned medical malpractice insurer, has purchased Hospitals Insurance Company (HIC), a New York State admitted and licensed insurance company, and FOJP Service Corporation, which provides third-party comprehensive insurance and risk management advisory services to HIC. The following information is designed to answer questions you may have pertaining to the transaction and related operational plans.
For additional questions, please contact Dave McHale, Chief Legal and Human Resources Officer, The Doctors Company, at (800) 421-2368, extension 1289, or dmchale@thedoctors.com.
THE TRANSACTION
The Doctors Company is committed to its mission of advancing, protecting, and rewarding the practice of good medicine—for healthcare providers and organizations of all types and sizes. HIC and FOJP share a similar mission in serving leading institutions and providers in the New York area. Combining our organizations will give The Doctors Company an ideal platform for delivering additional high-quality coverage solutions and risk-related services to a greater number of New York healthcare providers and institutions.
The Doctors Company has purchased HIC and FOJP for $650 million, subject to closing adjustments. The proceeds from the sale will be returned to the three not-for-profit hospitals that owned and founded the organization.
This transaction will improve healthcare for millions of New Yorkers by strengthening the financial position of Montefiore Health System, Mount Sinai Health System, and Maimonides Medical Center, where the cash infusion from the transaction will be leveraged to enhance patient care and make capital improvements. It will also improve the medical malpractice market for healthcare professionals in New York by providing expanded coverage options from a strong admitted carrier.
The acquisition aligns with state policymaker goals of expanding competition among medical malpractice insurers in the state, while remaining under the full authority of the Department of Financial Services (DFS) as an admitted insurer. To that end, we plan to work collaboratively with the DFS to establish a more competitively favorable position for The Doctors Company within the New York market.
ORGANIZATION AND OPERATIONAL PLANS
HIC will continue to exist as an admitted New York–domiciled insurer providing coverage for hospitals, physicians affiliated with HIC’s insured hospitals, and certain facilities and social services agencies. HIC and FOJP employees will work for a newly formed strategic business unit of the TDC Group, Healthcare Risk Advisors (HRA), and continue performing the same functions and providing the same services for HIC, the hospitals, long-term care facilities, and social services agencies that they had prior to the transaction.
HRA and HIC will be led by Rob Kauffman as president and Noeleen Doelger as chief operating and financial officer. Both currently serve in senior executive capacities at HIC. Walter Harris, current president and CEO of HIC and FOJP, will assume an advisory role with the TDC Group reporting to Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company.
No. HIC will continue to exist as an admitted New York–domiciled insurer providing coverage for hospitals, physicians affiliated with HIC’s insured hospitals, and certain facilities and social services agencies. HRA, formerly FOJP, will continue performing the same functions and providing the same services for HIC, the hospitals, long-term care facilities, and social services agencies that they had prior to the transaction.
No. The new organization will be created around the fundamental values shared by these two firms: Industry-leading service to members and conducting business with the highest standards of ethical decision-making and professionalism.
We do not anticipate that our financial strength ratings will be revised as a result of this acquisition.
Admitted physician business should be submitted to The Doctors Company through your established submission channel until notified otherwise. HIC coverage is only available to physicians affiliated with certain HIC-insured hospitals and who obtain insurance directly from HIC. Hospital affiliation requires the physician to perform at least 50 percent of his or her services at the hospital system.
The Doctors Company is not currently appointing additional New York agents, nor will we be appointing agents and brokers for HIC at this time.
No. At this time, HIC is not accepting broker submissions for physician and hospital risks, nor will Agent of Record (AOR) requests be honored.
The Doctors Company, HRA, and HIC will continue operating from the current Manhattan office located at 111 West 33rd Street, New York, NY 10120.
MARKETING AND BRANDING
Except for certain policy documents, HRA and HIC communications will be from HRA as follows:
During the dissolution period of FOJP, certain communications may need to be issued by the FOJP entity.
In cases where a clear indication of the underwriting company is required by regulators, the Hospitals Insurance Company, Inc., mark will be used:
