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Commentary: Medical Mutual vs. The Competition
Your reputation and livelihood could some day rest on the differences.
By Terrance J. Sheehan, MD
President & CEO
No other carrier has ever declared a dividend in Maine, New Hampshire or Vermont.
In a competitive
marketplace,
companies often
devote considerable
effort
toward communicating
the differences
in their
products and
services relative to their competitors.
When it comes to medical professional
liability insurance, Medical Mutual surely
offers both distinct advantages in its
contractual language and program design
that competitors have difficulty matching.
Definition of a claim, administrative
defense, slot coverage and how we handle
tail coverage, for instance, provide
significant savings and flexibility for our
policyholders.
But when your reputation is on the
line because of a medical liability dispute,
the biggest differences between Medical
Mutual and other carriers in Northern
New England are fundamental and rooted
in our philosophy, our corporate
objectives and our overall approach to the
job of providing medical professional liability
coverage. As such, they fundamentally
— and often dramatically — affect
the protection and treatment you receive
for your premium dollar.
The Mutual Advantage
First and foremost, as a mutual company,
Medical Mutual exists to serve our
owner-policyholders – physicians and
institutions throughout Maine, New
Hampshire and Vermont. Unlike our
competitors, we are not a stock company
whose goal is to create profit for its stockholders.
Nor are we a subsidiary of a
large out-of-state company.
How does this fundamental difference
play itself out? When premiums exceed
the cost of doing business and assuring a
financially strong company, Medical
Mutual declares a dividend — payable to
its policyholders — which it has done
eight times for a total of $23 million. No
other carrier has ever declared a dividend
in Maine, New Hampshire or Vermont.
We are here first and foremost to protect
the assets and, just as importantly,
the reputations of its member-policyholders.
To that end, we make decisions based
on the principle of "Doing the right
thing." We settle meritorious cases quickly
and fairly. But when a claim is without
merit, we will bring to bear all the necessary
resources to properly execute a
defense. Which is to say, we make such
decisions based on the care provided, not
corporate-centered cost-benefit analyses.
Similarly, we serve all physician and
hospital classes, not just those that offer
profitability. Our commitment to the
physicians and institutions of Maine,
New Hampshire and Vermont is unwavering.
Our roots are here and our member-
policyholders count on us to remain
here for them. We’ve been serving Maine
continuously since our inception 30 years
ago and have served the New Hampshire
and Vermont markets continuously since
entering those states in the early 1990’s.
No other company, past or present, can
make these assertions.
Some insurers enter and exit geographic
and individual medical markets
based on dollars and cents. Leave a state,
drop a medical specialty, it’s just business
to them. To them, perhaps, but to the
individual physician who is suddenly left
without coverage, such redlining often
feels personal, and the potential hardship
of having to secure new coverage in what
would obviously be a difficult market,
can be extremely onerous.
Of The Medical Community, For The Medical Community
Another major difference between Medical
Mutual and other companies is our
deep involvement with the medical
communities of Northern New
England. Our support for
their causes positively
affect both insurance-
related
issues and the
environment
in which all
healthcare professionals
in the region
practice every day.
Medical Mutual works very
closely with the leadership of the
medical societies and specialty associations
of Maine, New Hampshire and
Vermont. Additionally, we financially support these groups and their initiatives,
such as the physician health programs in
all three states.
Moreover, the Company routinely
coordinates Legislative efforts with these
associations and societies to bolster the
strength of the medical community’s
voice on important state issues.
Contrary to what some might say or want to believe, medical professional liability insurance is anything but a commodity... What Medical Mutual offers is a Company that is thoroughly dedicated to protecting your interests, your livelihood and your good reputation.
These partnerships with the medical
community also cut both ways. Insured
physicians and hospital executives from
throughout the region participate as
members of Medical Mutual’s Board of
Directors and its committees, which are
both active and intimately engaged in
providing direction on claims, underwriting,
marketing and other important
issues surrounding the Company and our
service to policyholders.
Risk Management: Comprehensive, Unequalled, Collaborative and Local
Finally, while other insurers may offer risk
management advice through an 800-number
or services through an out-of-state risk
management office, no other company can
match the combined depth, quality and
local presence of Medical Mutual’s risk
management services. Comprehensive and
readily available, Medical Mutual offers
the kind of risk management services that
are extremely practical and effective in
helping physician practices and hospitals
reduce their exposure to undue risk.
Each issue of The Beacon, a quarterly
publication of the Company’s Claims and
Risk Management Departments, contains
what many consider to be must-read case
studies that are all archived on the
Company’s web site. In addition, the
Company’s educational programs, comprehensive
online library of practice tips, as
well as assessment tools and detailed office
practice surveys, shine a light and provide
guidance on countless specific risk scenarios.
And our risk management staff, which
includes local specialists in each state, has
daily contact with many of our institutional
policyholders, truly partnering with each
institutions’ in-house risk management
staff. Together, they plan and develop programs
tailored to the institution’s needs.
The Insurance-as-Commodity Myth
The bottom line is that contrary to what
some might say or want to believe, medical
professional liability insurance is anything
but a commodity. At times,
competitors may offer their insurance
contracts for a lower premium. But when
you buy such a necessity solely on price,
you get what you pay for: an insurance
contract. What Medical Mutual offers is
a Company that is thoroughly dedicated
to protecting your interests, your livelihood
and your good reputation – today,
tomorrow and forever.