New York State-based Hospitals Insurance Company provides insurance coverage and services to hospitals, physicians, long-term care facilities, healthcare professionals, and agencies
Image: Hospitals Insurance Company acquired by The Doctors Company. Photo: courtesy of rawpixel/Pixabay.
The Doctors Company (TDC) has wrapped up its previously announced $638m (£526.16m) acquisition of Hospitals Insurance Company (HIC), a New York State admitted and licensed insurance company.
Along with Hospitals Insurance Company, TDC has also acquired assets and liabilities of FOJP Service, the former’s manager, for $12m (£9.9m). The New York-based FOJP Service provides third-party insurance and risk management advisory services to HIC-insured hospitals.
The acquisition of Hospitals Insurance Company, which was announced by TDC in November 2018, was approved by the US Department of Financial Services (DFS) last month. The company was bought by TDC from Maimonides Health Resources, Montefiore Medicine Academic Health System, and Mount Sinai Health System.
Based in California, TDC claims to be the largest physician-owned medical malpractice insurance company in the US.
Why TDC acquired Hospitals Insurance Company
TDC carried out the transaction as it is said to be in line with state policymakers’ aim of expanding competition among medical malpractice insurers in New York State, while remaining under the completed authority of the DFS.
TDC chairman and CEO Richard Anderson said: “We are excited to bring our mission to advance, protect, and reward the practice of good medicine to an even greater number of healthcare providers in New York.
“Our mission is beautifully aligned with the great work of HIC and FOJP.”
Hospitals Insurance Company, which has offices in New York City and White Plains, provides insurance coverage and services to hospitals, physicians, long-term care facilities, healthcare professionals, and agencies in New York State.
In addition to providing insurance coverage for professional and general liability, Hospitals Insurance Company offers risk management services to hospitals and physicians.
Following the closing of the acquisition, TDC has founded a new business unit within its group, called Healthcare Risk Advisors (HRA), which will succeed FOJP. HRA will be engaged in providing third-party insurance and risk management advisory services, including management of the self-insured programs of large healthcare organisations across New York and beyond.
Hospitals Insurance Company will continue to operate as an admitted New York–domiciled insurer offering coverage for hospitals, physicians affiliated with its insured hospitals, and long-term care facilities and social services agencies.