The New York State Department of Financial Services (“DFS”) has approved the application of The Doctors Company (“TDC”), the largest physician-owned medical malpractice insurance company in the nation, to purchase Hospitals Insurance Company (“HIC”) from Maimonides Health Resources, Inc., Montefiore Medicine Academic Health System, Inc., and Mount Sinai Health System, Inc., for $638 million.
TDC also will purchase the assets and liabilities of HIC's current manager, FOJP Service Corporation, from the sellers for $12 million.
“Taking into consideration the importance and current status of New York's medical malpractice market, DFS carefully reviewed this acquisition to protect HIC policyholders,” said the DFS superintendent, Linda A. Lacewell. “The measured expansion of competition in the medical malpractice market by a DFS-regulated insurer is positive for doctors, and ultimately good for consumers.”
“We are pleased the New York Department of Financial Services has given final approval for this important transaction. This enables us to deliver on our commitment to New York physicians and hospitals to provide expanded coverage options from a strong admitted carrier, and to build a mission-based platform to serve the medical professions. We look forward to the transaction closing on July 31, 2019,” said Richard E. Anderson, MD, FACP, TDC's chairperson and chief executive officer.
Founded in 1976, TDC, a California-domiciled insurer authorized in New York, has more than $4.8 billion in assets, 80,000 members nationwide, and a member surplus of approximately $2.1 billion. TDC also serves as the parent company for insurance service subsidiaries that provide a wide variety of additional insurance products and services.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].