This page contains a Flash digital edition of a book.
Insurance


A SURE WAY


AHEAD


Change in the US healthcare landscape has triggered an increase in the number of mergers & acquisitions between healthcare bodies. Insurance products are helping the industry fi nd certainty amid rapid change, as Kieran Dempsey and Nancy McMahon from Ryan Specialty Group explain.


F


undamental structural changes to the healthcare landscape in  Care Act (PPACA), aka Obamacare, have triggered a trend towards mergers & acquisitions (M&A) in the sector.


The insurance industry has, in turn, responded to the challenges many


organizations face when structuring such deals and ensuring a clean slate is achieved going forward.


That is the view of Kieran Dempsey, a managing director within


Ryan Specialty Group responsible for leading the RSG Underwriting Managers’ healthcare and life sciences underwriting companies, which currently include Sapphire Blue and LifeScienceRisk.


“Healthcare companies and systems in all senses are trying to deal with what have been fundamental regulatory changes in recent years. Among the advantages in this new landscape are economies of scale and we are seeing M&A activity occurring at all levels in the sector as healthcare facilities merge with other practices and they bring physicians into their portfolios.


“This creates a number of challenges which the insurance industry can be instrumental in solving,” Dempsey says.


54 | HEALTHCARE RISK MANAGEMENT REVIEW | Annual 2014 Nancy McMahon, president and CEO of Sapphire Blue, also notes


that more healthcare facilities are looking to provide the full spectrum of service now from acute care to home health. But as organizations grow, diversify and merge with other providers, this creates a number of challenges.


“We are seeing facilities provide services all through the healthcare


chain. This makes a lot of sense in the context of new regulation but insurance becomes an important part of the solution for such bodies.”


Buying certainty There are a number of types of insurance critical to such deals happening  in recent years in terms of the pricing, limits available and sophistication of such products. Sapphire Blue has a product to address coverage on historic liabilities such as medical malpractice claims with its Extended Reporting Period (ERP) Policy. This type of policy can be structured to cover any claims emerging from before the deal took place—something that is common in the healthcare sector.


“This type of policy covers claims that emerge over time but which are 


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76