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IN REVIEW


FINANCIAL STRENGTH A N D S TA B I L I T Y PRMS offers unique benefits that extend well beyond its specialized expertise in psychiatry and reinforces the strength and stability of our business.

BROAD EXPERTISE IN SPECIALTY INSURANCE Our parent company, CapSpecialty®, is a national leader in specialty insurance for small and medium-sized businesses. Through a shared services approach, PRMS has the resources and support of more than 200 insurance professionals and more than 90 years collectively of insurance marketplace experience.

THE BACKING OF A LEADING PUBLIC INSURANCE HOLDING COMPANY Through CapSpecialty, we are an indirect, wholly-owned subsidiary of Alleghany Corporation, a U.S.-domiciled company (NYSE: ‘Y’) with approximately $22 billion in assets. As stated on its website, “Conservatism dominates our philosophy.” Alleghany, founded in 1929, is a Fortune 500 company that has been recognized as one of the Ward’s 50 Benchmark Group of top performing property-casualty insurance companies in the United States. The Ward Group selects 50 propertycasualty companies from over a list of 3,000 that surpass their peers. Every insurer selected to represent Ward’s 50 must surpass a number of rigorous tests, which evaluate safety, consistency and performance measurements. Additionally, the group’s performance is compared to the industry as a whole.

STRONG CORPORATE TIES TO TOP-RANKED INSURANCE AND REINSURANCE CARRIERS In developing its products and managing its business, PRMS selects the best possible choice of a carrier to meet our clients’ needs. Thus, we further leverage the strong family of Alleghany companies including our program’s insurance carrier Fair American Insurance and Reinsurance Company (FAIRCO); and the Program’s reinsurer, Transatlantic Reinsurance Company (TRC), our sister company, which is considered to be the premier medical professional liability reinsurer in the world. FAIRCO, a U.S.-domiciled insurer, is rated ‘A’ (Excellent) by A.M. Best Company with a positive outlook and ‘A+’ by Standard & Poor’s with a stable outlook. TRC, also a U.S.-domiciled company, has been involved in all aspects of our program since 1991. TRC is rated ‘A’ (Excellent) by A.M. Best with a positive outlook and ‘A+’ by Standard & Poor’s with a stable outlook.

IN REVIEW

4


22,000+

UNPARALLELED EXPERTISE IN DEFENDING PSYCHIATRIC CLAIMS

Our staff has a proven track record of providing exceptional service and expertise for more than 22,000 psychiatric-specific claims, lawsuits and significant events since 1986.

“

We are proud of our hands-on, personalized service providing expertise, guidance, and support for psychiatrists during what is often a difficult and stressful time.

FENSE DE PRMS

27

DAVID TORRANS II

SENIOR LITIGATION SPECIALIST N

D

E

YEARS

DIC TIO A

15


C L A I M S E X P E R T I S E (C O N T ’ D)

RISK COMPARISON: BOARD AND ADMINISTRATIVE COMPLAINTS FILED

VS LAWSUITS FILED

55%

62% 45%

40%

38%

2011 2012

2013

In the midst of some nasty swamps you were a friendly solid refuge.

- PRMS INSURED PSYCHIATRIST

D

EFENSE PRMS

10

YEARS

CHRISTINE GRAY-KNIGHT, JD, CPCU

SENIOR LITIGATION SPECIALIST N

D

E

DIC TIO A

IN REVIEW

64%

60%

16

36%

2014


CAUSE OF LOSS - ALL STATES

SUICIDE / ATTEMPTED SUICIDE

44%

17%

PERFORMANCE ERRORS

1 YEAR

BASED ON THE PSYCHIATRISTS’ PROGRAM DATA FOR THE PERIOD 2014

COMMUNICATION ERRORS

DIAGNOSIS ERRORS

SUICIDE / ATTEMPTED SUICIDE

5% 27%

1%

16%

COMMUNICATION ERRORS

6%

OTHER Forensic, Libel/Slander, Undue Familiarity, Vicarious Liability “PC”, Boundary Violation, Breach of Confidentiality, Abandonment, Lack of Informed Consent

MEDICATION RELATED

50%

10 YEAR

PERFORMANCE ERRORS

BASED ON THE PSYCHIATRISTS’ PROGRAM 10-YEAR DATA

5%

5%

DIAGNOSIS ERRORS

18%

6%

OTHER Forensic, Libel/Slander, Undue Familiarity, Vicarious Liability “PC”, Boundary Violation, Breach of Confidentiality, Abandonment, Lack of Informed Consent

MEDICATION RELATED

The “cause of loss” represents the main allegation made in the claim or lawsuit. In almost all lawsuits multiple allegations of negligence are asserted. These data are collected based on the chief allegation or complaint. The category of “Performance Errors” captures any claim or lawsuit in which the general allegation is “incorrect treatment”. The “Diagnostic Errors” category used here encompasses failure to diagnose and incorrect diagnosis and the “Medication Related” category encompasses all types of drug/medication misadventures, including errors in prescribing, adverse reactions to medications, mismanagement of patient’s medication regime, or other unanticipated outcomes related to medication use. The “Medication Related” category remains the number one identifiable cause of loss.

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CONTACT US (800) 245-3333 TheProgram@prms.com PsychProgram.com 1401 Wilson Boulevard, Suite 700 Arlington, VA 22209-2402

MORE THAN AN INSURANCE POLICY


2014 PRMS in Review