20100210-IR-760100050NRA Bulletin 175 January 21, 2010 Patient's Compensation Fund – Surcharge Rates for Hospitals and Physicians

DEPARTMENT OF INSURANCE

Bulletin 175 January 21, 2010 Patient's Compensation Fund – Surcharge Rates for Hospitals and Physicians

This bulletin is directed to all health care providers electing to be qualified under Indiana's Medical Malpractice Act (IC 34-18-1-1 et seq.) and to insurers that provide coverage to those health care providers.

Pursuant to IC 34-18-5-2, the Commissioner of the Department of Insurance in her capacity as administrator of the Patient's Compensation Fund hereby notifies physicians and hospitals of the following surcharge for qualification under the Medical Malpractice Act. The rates are effective for coverage beginning March 1, 2010.

PHYSICIANS

The surcharge for physicians has been reduced 17.7%. A complete list of physician specialty class codes is published at 760 IAC 1-60.

CLASS	ANNUAL RATE
0	$1,986
1	$2,648
2	$3,707
3	$4,766
4	$5,958
5	$7,944
6	$11,916
7	$18,536
8	$22,508

HOSPITALS

The surcharge for a hospital is calculated using the attached worksheet. The completed worksheet shall be submitted to the Department along with the surcharge payment. The attached worksheet reflects an overall 28.4% decrease in surcharge for hospitals.

INDIANA DEPARTMENT OF INSURANCE

________________________________

Carol Cutter, Commissioner

HOSPITAL EXPOSURE WORKSHEET FOR SURCHARGE CALCULATION
Name of Hospital:
License No:

Attach a list of the following:

(1) All facilities and/or services operated under the hospital license, as identified on the Department of Health Application for License to Operate a Hospital.

(2) All assumed business names used by the hospital.

(3) All employed physicians included in this coverage along with their specialty class code and surcharge computation.

Any entity, person, or activity not identified in this surcharge worksheet may not be included in the hospital's coverage with the Patient's Compensation Fund.

CATEGORY	EXPOSURE	MANUAL	TOTAL
Provide # of Beds			Category × Manual = Total
	Hospital (Acute Care and Intensive Care)		$577
	Mental Health/Rehabilitation		$289
	Extended Care/Intermediate Care/Residential		$29
	Nursing Home/Critical Extended Care		$289
	Health Institution/Assisted Living/Other		$115
	Bassinets		$577
# of Visits (in 100s)
	Emergency Room		$57.70
	Clinics/Others		$28.85
	Mental Health/Rehabilitation		$14.43
	Health Institution		$11.54
	Home Health Care		$28.85
Provide # of Surgeries/Births (in 100s)
	Births		$2,308
	Outpatient Surgeries		$57.70
	Inpatient Surgeries		$1,154
Employed* Physicians Sharing Limits	100% of Specialty Code
		SUBTOTAL
	Lack of Risk Management Program	10% Penalty × subtotal
	Hospital with > 500 beds	3% multiplier of subtotal
		TOTAL DUE

Definitions:

Hospital bed - Licensed hospital beds usually on a short-term basis for patients who are need of acute medical treatment and skilled nursing care 24 hours a day (intensive diagnostic and invasive treatment for acute illness).

Mental Health/Mental and Physical Acute Rehab bed - Care, diagnosis, and treatment for acute psychiatric, emotionally challenged, and physically handicapped patients needing 24 hour supervision, assistance, and treatment.

Extended Care/Intermediate/Residential bed - Nonacute occasional incidental medical and emergency assistance to residents living independently in retirement apartments and communities. Facilities provided with security and emergency call boxes. Some contact services are available to residents.

Nursing Home/Critical Extended Care bed - A step-down from acute medical care for patients still needing 24 hour nursing care usually for an extended or long-term basis. Skilled care services needed such as medication administration, tube feeding, injections, catheterizations, and other procedures ordered by a physician.

Health Institution/Assisted Living/Other bed - Subacute minor health care and related personal services to assist residents on an ongoing and regular basis. Minor nursing care and assistance in such activities as laundry, meal preparations, bathing, and social functions.

*Employed physician - A physician is considered an employee for PCF purposes if the hospital withholds and pays Social Security and Medicare taxes and pays unemployment tax on wages paid to the employee. If a physician is treated as an independent contractor for tax purposes, then he/she cannot be considered an employee for PCF purposes.

Posted: 02/10/2010 by Legislative Services Agency

DIN: 20100210-IR-760100050NRA

Composed: Nov 01,2016 12:51:32AM EDT

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