Vermont Business Magazine The University of Vermont Health Network will be moving its captive insurance company to Vermont from Bermuda. The action comes as the result of a unanimous decision by the Board of Directors of VMC Indemnity Company, Ltd, the health network subsidiary that provides medical malpractice insurance coverage for its medical providers.
Because of its reputation for offering a predictable and stable regulatory environment, Vermont has become a leading location for captive insurance companies, a standard self-insurance practice option for academic medical centers that can make malpractice insurance less expensive than what is available through commercial insurance companies.
“We had an analysis done comparing the two locations and it is clear we can continue to provide low-cost, predictable insurance coverage to our providers if the company is located in Vermont,” said John Brumsted, MD, president and CEO of the UVM Health Network and VMCIC board member. “We strongly believe in doing business locally whenever possible, so we’re happy that being in Vermont is the best business decision in this case.”
“Our captive insurance industry is a shining example of what can be accomplished when we work together to provide and grow good jobs here in Vermont,” said Governor Phil Scott. “We’re pleased the UVM Health Network is moving their captive insurance plan home to Vermont, and hope this sends the message loud and clear to more organizations that this is a great place to do business, and the best place to domicile captives.”
As a result of the decision, a non-profit corporation will be established to become the UVM Health Network’s captive insurer, and it will seek approval from the Internal Revenue Service to operate as a tax-exempt organization, a process that could take up to a year.
“This is great news for Vermont and validation of our incredibly strong captive insurance industry,” said David Provost, Deputy Commissioner, Vermont Department of Financial Regulation. “We welcome the University of Vermont Health Network and are pleased to count them among the growing list of health care organizations located here.”
The change in location will have no impact on the providers insured by the plan, or on the cost of health care in Vermont. The cost of making the conversion is expected to be approximately $35,000-$50,000. The state of Vermont will collect approximately $50,000 annually in premium taxes.
About The University of Vermont Health Network
The University of Vermont Health Network is a six-hospital system serving the residents of Vermont and northern New York with a shared mission: working together, we improve people’s lives. The partners are:
- The University of Vermont Medical Center
- The University of Vermont Health Network Medical Group
- The University of Vermont Health Network – Alice Hyde Medical Center
- The University of Vermont Health Network – Central Vermont Medical Center
- The University of Vermont Health Network – Champlain Valley Physicians Hospital
- The University of Vermont Health Network – Elizabethtown Community Hospital
- The University of Vermont Health Network – Porter Medical Center
Our 4,000 health care professionals are driven to provide high-quality, cost-efficient care as close to home as possible. Strengthened by our academic connection to the University of Vermont, each of our hospitals remains committed to its local community by providing compassionate, personal care shaped by the latest medical advances and delivered by highly skilled experts.
Source: (BURLINGTON, VT) The University of Vermont Health Network 12.29.2017