Healthcare captives


In a fronting arrangement, the captive insurance company utilizes the services of a commercial insurance company to serve as the fronting company. The commercial insurance carrier must be licensed in the   


At the end of this process, the insured party will gain insurance


coverage through a policy written under the authority of the commercial insurance company. But, due to the reinsurance arrangement, the           arrangements will frequently require cash deposits or letters of credit to be established to ensure the ability of the captive to pay claims.


CHIEF CAPTIVE ADVANTAGES


             related to pending litigation. The decision to move forward with litigation  construct than how it is viewed by a commercial insurance provider—           for a captive insurance organization allows the owners and directors            independent of the interests of commercial policy underwriters.


In addition to professional liability, healthcare providers—particularly hospitals and large practice groups—have combined captive insurance                               


                   who is the former CEO and chairman of the board of Concentra, the    most recent business venture, Occusystem Services, Inc, he is continuing    


72 | HEALTHCARE RISK MANAGEMENT REVIEW | Annual 2014


                 


                 care as soon and as medically practical as possible.





 company controlled and you are not bound by some of the mandatory rules that can exist within commercial coverage. We have saved hospitals  





 platforms continue to gain greater acceptance across the healthcare landscape. Today, captives are becoming commonplace among a wide           facilities, physician groups and managed care concerns.


MAIN STRATEGIES BEHIND EMPLOYING A CAPTIVE


The strategies that most often drive the formation of a captive are the          opportunity to better control and protect the organization’s assets and the  


         rises above the rest. Without a focus on reducing potential claims to the lowest levels, organizations could see a reduction in available assets due to claims coverage. And, if the claims experience is equal to or greater than the premiums, the strategy of wealth transfer will become a moot   will determine in large part the level of success for the captive entity.


Risk management


 they are not just paying premiums to the captive. The premiums are an      


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