The Doctors Company Will Expand New York’s Medical Malpractice Insurance Marketplace, Bringing its 40-Year Track Record of Stability and Success to New York Providers
Hospitals Insurance Company and FOJP Service Corporation -- together with Mount Sinai Health System (Mount Sinai), Montefiore Health System (Montefiore), and Maimonides Medical Center (Maimonides) -- today announced their agreement to sell HIC and FOJP to The Doctors Company, the largest physician-owned medical malpractice insurer in the country, for $650 million, subject to closing adjustments. The transaction requires regulatory approvals and is expected to close in 2019.
The sale presents an important opportunity to financially strengthen these three hospital systems, so they can meet the health care needs of their communities and continue to provide the highest quality care. The hospitals remain deeply committed to serving patients in their communities regardless of their ability to pay for the quality care provided.
During the New York medical malpractice insurance crisis in the 1970s and 1980s, Beth Israel, Montefiore, Mount Sinai and Maimonides hospitals formed HIC and FOJP, which have provided the hospitals and related physicians with medical malpractice insurance for 40 years. By unlocking their investment in HIC, these hospital systems will benefit from a significant cash infusion that will enable them to continue providing quality care to millions of New Yorkers.
The Doctors Company serves 80,000 members across the country. The company has an “A” (Excellent) financial strength rating from A.M. Best and has been recognized and endorsed by the nation’s most prestigious medical organizations – including the New York County Medical Society and the New York State Society of Plastic Surgeons – for its commitment to members and advocacy on behalf of physicians.
The Doctors Company shares HIC and FOJP’s mission of protecting hospitals’ and physicians’ ability to provide the best possible care to patients, making them natural partners. The purchase aligns with state policymakers’ goal of expanding competition among medical malpractice insurers in the state, while remaining under the full authority of the Department of Financial Services.
“The Doctors Company is a natural partner for HIC and FOJP, bringing a 40-year track record of stability and success in providing coverage for physicians from all specialties,” said Walter Harris, CEO of HIC and FOJP. “The Doctors Company understands the needs of our member hospitals and physicians, and shares our mission of protecting their ability to provide the best possible care to all patients.”
“The Doctors Company is committed to providing New York’s physicians and hospitals with expanded coverage options from a strong admitted carrier,” said Richard E. Anderson, MD Chairman and CEO of The Doctors Company. “HIC and FOJP’s mission driven organization resonates with The Doctors Company and we are honored to support the healthcare system in the state of New York.”
“Mount Sinai, Montefiore, and Maimonides are indispensable anchors of New York’s health care community, and this transaction will strengthen their ability to provide high-quality care to everyone
who walks through their doors,” said Greater New York Hospital Association President Kenneth E. Raske.