I've had the privilege to work in the healthcare insurance industry for the past 30 years. As a claims executive, I worked as a member of the management team that started The Doctors Company in Santa Monica, California in response to the first medical malpractice crisis in 1975. I have also worked with physicians as an executive for the country's largest small-group health insurer, the largest reinsurer of provider organizations, ranging from physician and hospital networks to HMO's, and one of the world's largest brokerage firms serving the healthcare industry.

Over the last decade, medical malpractice insurance rates have grown at an alarming rate as traditional insurers raised premiums to exorbitant levels to cover projected claims. The excess premium did not go to help physicians, but instead severely eroded practice income and forced many physicians to practice without professional liability insurance coverage.

As much as 50% of the premium physicians paid to some companies was spent for management and corporate overhead costs, past underwriting mistakes and shareholder dividends. Too little of the premium was allocated to help physicians prevent malpractice claims, to aggressively defend non-meritorious claims and to advocate legislative and other solutions that would help the physician community gain control of medical malpractice risk and costs.

I knew there was a better way.

Physicians simply shouldn't pay high premiums to cover the overhead of large insurance companies. Those who successfully manage their practice risks shouldn't have to subsidize colleagues with unfavorable loss experience. And increasingly, they are unwilling to.

In the last seven years more than 70 risk retention groups have been formed to insure physicians, more than triple the number in the 15 years prior. Last year 50% of the risk retention groups were formed by physicians seeking to control their insurance programs and lower their premium rates.

Physhield's mission is to empower physicians to effectively manage their medical malpractice risk, to lower their premium rates over time and to share in any investment and underwriting surpluses or "profits". Physhield is a member of the Phyhealth family of companies that were formed to empower practicing physicians and advance the principle of Physician Managed Healthcare.

We work with physicians in all specialties who demonstrate a strong ability to control and manage medical liability losses and loss exposures. While claims against physicians are inevitable, the physician groups and organizations we insure will have a history that is absent of substantial and meritorious claims arising from medical malpractice. Working closely with our insured physicians keeps our overhead costs lower and maintains the underwriting and claims discipline necessary for a stable, long-term program with effective coverage at manageable premium rates.

Despite tort reform efforts, physicians will continue to be faced with malpractice risks and costs that put extreme pressure on their ability to maintain independent practices. Your options are clear:

• Use a traditional insurer or state "admitted carrier".
• Finance, start and manage your own captive or physician owned risk retention group.
• Practice without medical malpractice insurance.
• Or click on the Join button and let us demonstrate how you can benefit from Physhield's unique program.

Isn't it time for a change?

I look forward to speaking with you about the Physhield difference.

Physhield President