Senate Community Budget Issue Requests - Tracking Id #2101 Tail Malpractice Insurance Buyout
Requester:	WALTER L. "MICKEY" PRESHA		Organization:		Manatee County Rural Health Services, Inc.
Project Title:	Tail Malpractice Insurance Buyout		Date Submitted:		01/31/2000 11:46:06 AM
District Member:	James Hargrett		Service Area:		County
Counties Affected:	Manatee
Recipient:	Manatee County Rural Health Services, Inc.		Contact:		Walter L. "Mickey" Presha
	12214 U.S. Highway 301 North - P. O. Box 499		Contact Phone:		(941) 776-1232
	Parrish 34219
Project Description:
Malpractice insurance has a major impact on the entire medical industry and the overall expense required to provide quality health care to patients. As a non-profit 501c(3) organization, MCRHS is continually challenged to keep overhead and fixed costs as low as possible in order to keep pace with the 110,000+ patient visits it conducts annually. Malpractice insurance, for an organization with as many medical specialities as MCRHS and that conducts so many annual patient visits, serves as a major financial burden each year. In 1993, MCRHS was selected as one of the first community health centers in the nation to be deemed into the Federal Torts Claims Act (FTCA) under the Bureau of Primary Health Care which enabled MCRHS and its medical providers to be treated as Federal employees. This benefit offers tremendous benefit for future claims and claims that occur after 1993. In order to take advantage of this program offered by the FTCA and eliminate appoximately $400,000 of of annual malpractice premiums, MCRHS was required to purchase Tail insurance coverage for the years of operation prior to 1993. This one time premium is calculated at 2 1/2 times the price of the annual premium ($400,000) totaling $1 million. MCRHS has been able to bear the burden of half of this expense and is requesting aid from the legislature to fund the other half of this financial burden. Although an initial capital outlay is required, the savings and protection for MCRHS in future years will translate into substantial dollars in the future that will be better used when re-directed to health care services.
Services Provided/Benefit to State:
By eliminating this one time expense for required Tail Malpractice Insurance (insurance that covers all malpractice retroactive to previous years of operation back to the year MCRHS was established), we are able to re-direct these large sums of money from fixed overhead costs into operations. This translates into better services and health care for our needy patients. These moneys are better used for hiring needed medical staff, purchasing medical equipment and supplies, and funding preventive health education programs. The less money required for overhead and administration, the more money that can be used for value added expeneses that positively impact the quality of health care provided.
Measurable Outcome Anticipated:
N/A
Amount requested from the State for this project this year:				$250,000
Total cost of the project:		$400,000

Request has been made to fund:			Operations
Is there Local Government or Private match for this request?				Yes
	Cash Amount:	$150,000
Was this project previously funded by the State?				No
Is future-year funding likely to be requested?				No
Was this project included in an Agency's Budget Request?				No
Was this project included in the Governor's Recommended Budget?				No
Is there a documented need for this project?				Unknown
Was this project request heard before a publicly noticed meeting of a body of elected officials (municipal, county, or state)?				Yes
	Hearing Body:	Manatee Legislative Delegation
	Meeting Date:	09/30/1999