Report Title:

Hospital and Professional Liability Risk Financing

Description:

Requires the Hawaii Health Systems Corporation to organize a domestic captive insurance company to provide malpractice coverage to the Department of Health, the John A. Burns School of Medicine, and other governmental entities or quasi-governmental entities of the State involved in the provision of health care.

HOUSE OF REPRESENTATIVES

H.B. NO.

2482

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HOSPITAL AND PROFESSIONAL LIABILITY RISK FINANCING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the cost to purchase medical malpractice and hospital liability coverage continues to rise and that stability in risk financing is needed for Hawaii health systems corporation, the department of health, and the John A. Burns school of medicine (JABSOM). The escalating costs of premiums, the lack of insurers providing hospital and medical malpractice liability coverage in Hawaii, the decreasing limits of coverage available, and coverage restrictions, make it important to establish a captive insurance company to insure and control exposure to these liability risks.

SECTION 2. The purpose of this bill is to direct Hawaii health systems corporation to organizes a domestic captive insurance company to be created by the Hawaii health systems corporation, which when established, may provide malpractice coverage to the department of health, the John A. Burns School of Medicine, and other governmental entities or quasi-governmental entities of the State of Hawaii involved in the provision of health care. To organize the captive insurer, Hawaii health systems corporation shall prepare a formalized business plan and application to be submitted to the insurance division for review and approval, and a formalized financial plan to be submitted to the director of finance for review and approval.

SECTION 3. Notwithstanding the provisions of section 43l:19-10l as it defines "Affiliated company," medical malpractice insurance coverage may be provided by the captive to other governmental entities of the State of Hawaii, quasi- governmental entities of the State of Hawaii, other healthcare entities financially associated with the State of Hawaii and the physicians providers who are employees or on the medical staff of such entities.

SECTION 4. This Act shall take effect on its approval.

INTRODUCED BY:

_____________________________

BY REQUEST