Dear AuntMinnie Member,
Looking for a way out of the malpractice insurance crisis? You might take a look at self-insurance, according to a presentation this week at the Radiology Business Management Association conference.
Once considered impractical for most radiology groups, self-insurance has become a viable long-term option for imaging practices due to the sharp rise in premiums from commercial insurers, according to Michael Fenton, executive director of Washington Managed Imaging, a network of 13 imaging centers in Washington State.
Mr. Fenton described his efforts to set up a self-insurance company. It wasn't easy -- WMI spent about $100,000 altogether, establishing a separate insurance carrier with an out-of-state domicile, a contract with a London-based reinsurance firm, and deals with actuarial firms and third-party insurance administration companies.
The process may sound intimidating, but self-insurance is becoming a more palatable option every day as insurance companies offer increasingly restricted coverage with ever-growing premiums. Although Mr. Fenton’s effort ended with an unexpected twist, he considers self-insurance the only viable long-term option for imaging groups in states that are experiencing malpractice insurance problems -- a list that encompasses almost the entire U.S.
You can read all about Washington Managed Imaging’s experience in our Imaging Center Digital Community, at http://centers.auntminnie.com/.
