1. ADVANTAGES OF CAPTIVE INSURANCE PROGRAMS FOR HEALTH SYSTEMS (AND NOT JUST LOWER PREMIUMS)
Presenter:
Norman G. Tabler, Jr.

2. Definitions
ASC
Hospital = + + +

3. CAPTIVE OR CAPTIVE PROGRAM =
or RRG or Both

4. GUARANTEED COVERAGE

5. LOWER PREMIUMS
No Profit Margin No Commissions Reduced Administrative Costs Focus Risk Management Department Physician Credentialing Total Savings A.M. Best reports: Profit = 16.4% of premium Commissions and Brokers’ Fees = 5.4% Other Expenses = 18.8%

6. IMPROVED RISK MANAGEMENT
Education Captive on Front Line Investigating Defending Paying Behavior Modification Reduced Premiums Taking Risk Reduction Steps Completing Education Sessions Achieving Goals Can Apply to Components of System Or Department and Divisions

7. IMPROVED QUALITY & OUTCOMES
Adoption of Approved Order Sets Following Approved Protocols Achievement of Quality Targets

8. IMPROVED PATIENT SAFETY

9. IMPROVED PATIENT SATISFACTION
Many Effective Steps Are Cost-Free
Others Are Not 9

10. INTERRELATIONSHIP OF ALL THESE GOALS

11. SUPPLY CHAIN SAVINGS
Interrelationship With Quality & Satisfaction

12. REDUCTION OF FRICTION BETWEEN INSURER & INSURED

13. ADVANTAGES IN DEFENSE

14. ENHANCEMENT OF PHYSICIAN INVOLVEMENT & LOYALTY

15. CAVEATS