New York State’s medical malpractice market is shifting dramatically, as local players struggle to compete with out-of-state companies taking advantage of a Reagan-era law to gobble up market share at a rapid clip.
The changes are causing concern among legislators, regulators, attorneys and the Cuomo administration that the upheaval could leave physicians far more exposed to — and in some cases personally liable for — malpractice claims than they might realize, and lead to increases in insurance rates that are passed onto patients.
The tenuous finances of Physicians’ Reciprocal Insurers, or PRI, the second-largest carrier in the state, is further undermining the fragile market. PRI, which has a negative surplus of $138 million, was implicated in a federal corruption case and is now considering a sale to a California-based company.
PRI’s future, and its finances, are important because New York’s five admitted carriers — the others are Medical Liability Mutual Insurance Company, The Academic Group, Hospital Insurance Company, and the Medical Malpractice Insurance Pool — pay into a guaranty fund that acts as a malpractice safety net in case one of the five goes under. If one does, the costs are passed along to the other insurers in the state.
PRI’s future remains in doubt—Source: Growing concern over shifts in N.Y. medical malpractice market | POLITICO
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