Physician Transition to New Liability Coverage
Since July 1, CHI has been transitioning employed physicians to the professional liability coverage provided by First Initiatives Insurance, Ltd. (FIIL), CHI’s captive insurance company. Nearly 300 employed physicians have transitioned to FIIL’s coverage for a total of approximately $1.5 million in premiums.
CHI announced the initiative – jointly sponsored by CHI’s Employed Physician Integration Council (EPIC), risk leadership and clinical leadership – in May. All newly employed physicians are immediately covered by FIIL’s liability program; employed physicians who have policies with other insurance providers are transitioning on their policy renewal dates.
“EPIC’s involvement in every aspect of this initiative has been key to a smooth transition,” said Peter Jones, vice president of global insurance services for CHI. “The members of EPIC helped us develop a program and coverage that will meet the needs of CHI’s physicians. We’re now hearing from our physician leaders that the transition process is efficient, and that premiums are generally lower than what the physicians and market-based organizations have been paying.”
CHI also anticipates advancing physician alignment and cost savings from this centralized insurance initiative as a result of:
The 2,000 physicians currently employed by CHI will complete the transition to FIIL liability coverage by June 30, 2014. Expected growth in CHI’s physician enterprise during the next five years means that up to 3,500 physicians may be covered by 2017.