Group’s continued success demonstrates value of captive insurance models for insuring malpractice risk and promoting patient safety in hospitals
MALVERN, Pa. (July 6, 2016) – Cassatt Insured Group, a captive insurance group for hospitals and other healthcare organizations, announced that it reached a milestone in June – 25 years in business.
Cassatt was founded in 1991 by a group of independent, non-profit hospitals in southeastern Pennsylvania in response to problems relating to availability and affordability of excess medical professional liability insurance coverage in the commercial marketplace. Since then, it has grown and flourished as a viable and successful alternative to traditional medical malpractice insurance coverage for hospitals and physicians.
Among the hallmarks of Cassatt’s success is its commitment to patient safety and healthcare quality and its demonstrated ability to help its member hospitals achieve improved healthcare outcomes, which ultimately reduce malpractice incidences and its associated costs. Fostering a culture of sharing among its members is a significant element of Cassatt’s work with its member hospitals, which share best practices, coordinate risk management efforts, focus intensely on claims management and work together in numerous other ways to improve the quality of healthcare in their facilities.
“Cassatt’s growth over the past 25 years is a great testament to our remarkable member hospitals,” said Eric Dethlefs, CEO and president of Cassatt. “Our members have been actively engaged since the beginning and our focus has not changed. We will continue to work with our members to find ways to create a safer environment for our patients.”
Today, Cassatt’s membership includes 11 hospitals throughout the Philadelphia area. After 25 years, Cassatt continues to grow and generate successful outcomes for its members:
- Shareholders’ equity increased by 120 percent
- Total value creation (2009-2015): $145 million
- Trial win rate (2008-2015): 84%
- Six-year average annual investment return is 6.7 percent
- Calendar year primary loss ratio: 27.5%
“Cassatt sets itself apart from other captives through their mature, extraordinary risk management focus,” said Kathleen Kinslow, CRNA, EdD, MBA, CEO and president of Aria Health System and chair of the Board of Directors at The Hospital & HealthSystem Association of Pennsylvania. “Improving quality and safe care for every patient is embedded in all of the work that they conduct.”
“Cassatt embeds a learning organization culture throughout its partner hospitals,” said Mike Duncan, CEO and president at Penn Medicine Chester County Hospital and chair of Board of Directors at The Cassatt Insured Group. “The use of external objective experts and mutual accountability to achieve best practices sets Cassatt apart from traditional malpractice insurance programs.”
As a cooperative organization, Cassatt’s members are also its owners. CEOs and senior executives from the area hospitals and healthcare organizations sit on Cassatt’s Board. This arrangement is unique to Cassatt and something that does not exist in a traditional commercial insurance program.
Founded in 1991, Cassatt Insured Group is a family of companies that provides medical professional and other liability insurance coverages and patient safety and risk management services. Cassatt is defined by a culture of sharing and offers its members a platform to share best practices and ways to improve the quality of healthcare in their facilities. Cassatt’s members include southeastern Pennsylvania-area hospitals and healthcare organizations and their physicians, nurses and other staff.