The Mission

The mission of the Warren Risk Retention Group, Inc. is to provide medical professional insurance for Warren Hospital and physicians on staff at a reasonable cost. Our main goal is to develop sound strategies to lower the risk of participating members and thereby provide stable premiums over time.

Overview of the Warren Risk Retention Group, Inc.

The Warren Risk Retention Group, Inc. (“Warren RRG”) is an insurance company formed to write medical professional liability for Warren Hospital and its voluntary attending physicians which meet certain qualifications. All owners of the insurance company are insureds, and all insureds are owners.

The insurance written by the Warren RRG is on a claims-made form with a pre-paid tail. The RRG writes limits of $1million per incident / $3 million annual aggregate (except for physicians subject to MCare in Pennsylvania, where the limits conform to Pennsylvania requirements). The insurance company will pay on behalf of and defend all insureds jointly so as to minimize total loss expenses.

Claims are handled by an independent claims adjuster hired by the insurance company.

Physicians must contribute capital in order to be an insured / owner of the RRG. As of 2006, the amount of capital required is $2,500. This is a one-time contribution.

The insurance company is domiciled in the State of Vermont, and formed according to the Risk Retention Group Act of 1986.

Underwriting Criteria - First Year

Physicians who satisfy the following eligibility criteria are eligible to be considered for participation: The physician
  1. must maintain a valid license to practice medicine in (where applicable) New Jersey and/or Pennsylvania;

  2. be a member of the active, honorary active or emeritus staff of Warren Hospital;

  3. shall agree to actively support and participate in the Risk Management and Quality Assurance programs of Warren Hospital;

  4. shall participate in two hours or more of Risk Management educational programs approved by the Program.

  5. shall agree to joint defense of claims;

  6. shall have at least 50% of his/her ongoing hospital based activity at Warren Hospital, within twelve months of joining and renewing with the Warren RRG.

Underwriting Criteria – Renewal

Professional liability insurance coverage will be renewed based upon evaluation criteria established by the Program. The following will be taken into account:
  1. continued compliance with initial eligibility criteria;

  2. positive claims history;

  3. the participant's cooperation in the defense of claims;

  4. input from claims service representative, defense counsel and Warren Hospital;

  5. any change in licensure or privilege status within any healthcare facility; and

  6. any other information which would bear upon the physician's skill and ethics of practice.

Highlights of Coverage

Underwriting Process

Most insurance companies which underwrite physicians start with an application which is reviewed according to a predetermined, set formula focusing on number of claims, years in practice, and other metrics.

The Warren RRG, on the other hand, starts with an application, but reviews the applicants without recourse to a predetermined formula. Consequently physicians who may be subject to “three strikes and you’re out” formulas at another insurance company, may find their file is looked at very differently.

The Underwriting Committee of the Warren RRG is comprised of physicians (which make up the majority of Committee members) and administrators involved in quality improvement. This Committee does not focus on the number of claims against a physician, but rather assesses the quality of the medical care provided by the physician applicant. Factors which the Warren RRG Underwriting Committee examine include the actual facts behind any reported claims, the physician’s educational background, and the ratio of number of years in practice versus number of claims.

Service Providers

As of October 2006, the independent service providers are:

Claims adjuster:Proclaim America
Insurance company manager:Marsh Management Services, Burlington Vermont
Attorney:Paul, Frank & Collins, P.C. Vermont
Accountant:Saslow Lufkin & Buggy, LLP, Burlington, Vermont
Actuary:Marsh Management Services, Burlington, Vermont
New Jersey Consultant:Marsh USA, Morristown, NJ

For more information on the Warren Risk Retention Group and rate indications please contact:

Michelle J. Roeder
Dir. Budget/Reimbursement and Risk Retention Group
Warren Hospital
185 Roseberry Street
Phillipsburg, New Jersey 08865
908-859-6700 x2579
michelleroeder@warrenhospital.org