Washington Casualty Co. Bought For $9.8 Million

Lansing, Mich.-based FinCor Holdings, Inc., a risk management corporation serving health care providers and facilities, announced yesterday it had acquired medical malpractice insurer, Washington Casualty Company for $9.8 million.

Washington Casualty is Washington State's fourth-largest medical malpractice insurer and is located in Issaquah, Wash.

Washington's Thurston County Superior Court gave final approval for the sale a hearing Friday.

FinCor said the transaction represents an important advance in its business toward a consultative service model, offering hospitals and health care providers risk financing programs, risk management solutions, and comprehensive insurance coverage.

The company said addition of WCC also fits its national growth strategy aimed at entering new markets organically and through acquisitions. Through WCC, FinCor said it will provide insurance services in 12 states.

Thomas Dickinson, FinCor president and chief executive officer said "WCC's strength and values align perfectly with those of FinCor. As a result, we are confident this transition will be seamless."

He added that, "Like WCC, FinCor has a reputation for valuing client relationships and focusing on providing solutions that work. This is evidenced by FinCor's historically high client retention rate, and the fact that we have clients who have been with us for more than 30 years."

FinCor's subsidiary, the MHA Insurance Company, provides medical liability insurance to hospitals and physicians, insuring more than 250 health care facilities and 5,000 physicians throughout the Midwest.

Through its other subsidiaries--FinCor Solutions, Capital Risk Solutions and the Risk Management and Patient Safety Institute--FinCor assists hospitals and healthcare providers in designing clinical risk management programs.

Since the formation of MHA Insurance Company over 30 years ago, FinCor has been providing hospitals and other providers with medical malpractice insurance, primarily on a direct basis.

FinCor through MHA currently insures hospitals and physicians in Michigan, Indiana, Ohio, Wisconsin, Kentucky, Iowa, Minnesota, North Dakota and South Dakota. The addition of WCC will extend the company footprint to Washington, Oregon and Idaho.

In addition to expanding geographically, FinCor said it is responding to an increasing market demand for comprehensive consultative services by creating FinCor Solutions, its full service insurance agency.

FinCor Solutions not only offers commercial insurance coverage from a number of national carriers, but also assists clients in the evaluation and implementation of alternative risk financing solutions.

FinCor's Risk Management and Patient Safety Institute helps hospitals and physicians design risk management programs to reduce adverse patient outcomes, leading to lower malpractice premiums and reduced claim frequency. The Institute serves clients in 50 states.