A Message From Our Chair
AHPIA was founded by medical teaching professionals exclusively to meet the unique professional liability insurance needs of clinical educators and physician faculty. AHPIA is wholly owned and governed by our insured subscribers. Insuring the future of medicine, AHIPIA works with practice plan and hospital partners to manage clinical risk in the academic environment.
AHPIA is a member of the Medical Professional Liability (MPL) Association. The Medical Professional Liability Association promotes, protects, educates, and connects medical professional liability insurers in the support of the quality delivery of healthcare and practice of medicine. The MPL industry is keeping pace with disruptive forces in healthcare, the challenges of enterprise risk management and the impact of catastrophic cases.
AHPIA provides MPL coverage for faculty physicians and dentists, medical students (US and foreign), and advanced practice providers. Policies are customized to the distinctive role of the physician educator/researcher. AHPIA highlights an experienced claims team and strong service oriented defense teams.
AHPIA is governed by a board of governors comprised of physician and dentist faculty. Each campus practice plan elects representatives to the board. In addition, the board of governors now is also served by an Advisory Committee. The Advisory Committee is made up of industry experts and key practice plan leaders.
Academic has been challenged because its projected claims or “loss experience” was underestimated for a number of years. These miscalculations led the company to set its premiums too low resulting in a large deficit. Since then Academic has worked closely with its primary regulator, the New York Department of Financial Services, on a broad restructuring effort in order to reduce the deficit while minimizing the impact on our subscribers and former subscribers.
The primary focus of the AHPIA board of governors most recently has been financial improvement through a comprehensive restructuring process. Restructuring has included updating board membership, replacing multiple senior staff members, assessing all current subscribers an additional year of premium, invoicing former subscribers for their proportional share Academic’s losses, reducing the expense budget by 40%, and has concluded a competitive process and successful asset transfer for pro-active investment management.
In early 2015, Academic’s claims department began industry-leading claims handling and review procedures that have resulted in expedited claims resolution, while incurring reduced indemnity and expense costs. Our improved results coupled with the recent pattern of fewer claims, keeps Academic positioned to benefit from a more optimistic actuarial outlook and resultant improvement to our balance sheet. Our claims department has continued to resolve more claims, faster while spending less money. In addition, fewer new claims came in.
Academic is also in the process of exploring additional improvements to its claims handling through a possible partnership with a third-party claims administrator to obtain improved IT, risk management and reporting services. We will look to assure improvements can progress while utilizing our existing claims staff and reducing both our indemnity payments and claim related expenses.
These actions have us moving strongly in the right direction. At the conclusion of Q1 2019, the deficit stands at $30.1 million dollars (improved from a deficit in Q4 2017 of $73.1 million). AHPIA has invoiced withdrawal fees to subscribers and practice plans that have left the company. This process is on firm legal grounding with regulatory support from the DFS.
Going forward, AHPIA will also continue to implement new risk mitigation strategies, create a new subscriber dashboard, and improve cyber security and data analytics.
While challenges remain, the future for AHPIA is bright. Our company is led by a strong executive team, an engaged board and a loyal and experienced staff. We have efficient and professional legal counsel as well as a respectful alliance with our regulators at the Department of Financial Services. Together we will continue our restructuring efforts and ensure our sustainability into the future.
AHPIA is a member of the Medical Professional Liability (MPL) Association. The Medical Professional Liability Association promotes, protects, educates, and connects medical professional liability insurers in the support of the quality delivery of healthcare and practice of medicine. The MPL industry is keeping pace with disruptive forces in healthcare, the challenges of enterprise risk management and the impact of catastrophic cases.
AHPIA provides MPL coverage for faculty physicians and dentists, medical students (US and foreign), and advanced practice providers. Policies are customized to the distinctive role of the physician educator/researcher. AHPIA highlights an experienced claims team and strong service oriented defense teams.
AHPIA is governed by a board of governors comprised of physician and dentist faculty. Each campus practice plan elects representatives to the board. In addition, the board of governors now is also served by an Advisory Committee. The Advisory Committee is made up of industry experts and key practice plan leaders.
Academic has been challenged because its projected claims or “loss experience” was underestimated for a number of years. These miscalculations led the company to set its premiums too low resulting in a large deficit. Since then Academic has worked closely with its primary regulator, the New York Department of Financial Services, on a broad restructuring effort in order to reduce the deficit while minimizing the impact on our subscribers and former subscribers.
The primary focus of the AHPIA board of governors most recently has been financial improvement through a comprehensive restructuring process. Restructuring has included updating board membership, replacing multiple senior staff members, assessing all current subscribers an additional year of premium, invoicing former subscribers for their proportional share Academic’s losses, reducing the expense budget by 40%, and has concluded a competitive process and successful asset transfer for pro-active investment management.
In early 2015, Academic’s claims department began industry-leading claims handling and review procedures that have resulted in expedited claims resolution, while incurring reduced indemnity and expense costs. Our improved results coupled with the recent pattern of fewer claims, keeps Academic positioned to benefit from a more optimistic actuarial outlook and resultant improvement to our balance sheet. Our claims department has continued to resolve more claims, faster while spending less money. In addition, fewer new claims came in.
Academic is also in the process of exploring additional improvements to its claims handling through a possible partnership with a third-party claims administrator to obtain improved IT, risk management and reporting services. We will look to assure improvements can progress while utilizing our existing claims staff and reducing both our indemnity payments and claim related expenses.
These actions have us moving strongly in the right direction. At the conclusion of Q1 2019, the deficit stands at $30.1 million dollars (improved from a deficit in Q4 2017 of $73.1 million). AHPIA has invoiced withdrawal fees to subscribers and practice plans that have left the company. This process is on firm legal grounding with regulatory support from the DFS.
Going forward, AHPIA will also continue to implement new risk mitigation strategies, create a new subscriber dashboard, and improve cyber security and data analytics.
While challenges remain, the future for AHPIA is bright. Our company is led by a strong executive team, an engaged board and a loyal and experienced staff. We have efficient and professional legal counsel as well as a respectful alliance with our regulators at the Department of Financial Services. Together we will continue our restructuring efforts and ensure our sustainability into the future.
Andrea T. Manyon, M.D.
Chair, Board of Governors, AHPIA
Professor of Family Medicine
Jacobs School of Medicine
Chair, Board of Governors, AHPIA
Professor of Family Medicine
Jacobs School of Medicine
