The
Captive Insurance J O U R N A L
1st Quarter 2013
I N
T H I S
I S S U E
Page 2 President’s Message
Page 3 2013 Committee Members
Page 4-5 2013 SCCIA Convention: Wild Dunes, Isle of Palms
SCCIA Member Spotlight OrthoForum Insurance Company (a Risk Retention Group) An Interview by Anne Marie Towle, CPA and Senior Captive Consultant with the Willis Global Captive Practice with Glenn Sumner, CEO of OrthoTennessee and OrthoForum Insurance Company board member, Charles May, CEO of Jewett Orthopaedics and OrthoForum Insurance Company board member. Background of the OrthoForum
Page 6 SCCIA’s 2013 Keynote Speaker: Frank Abagnale
The idea for the OrthoForum was spawned in 2000 through conversations initiated by Glenn Sumner, CEO of OrthoTennessee with two other orthopaedic practice administrators. Mr. Sumner was involved with American Association of Orthopaedic Executives (“AAOE”) and was seeking additional avenues to benchmark and compare his orthopaedic practice to other large, physician owned orthopaedic practices across the country. Mr. Sumner contacted several practices in the Midwest and Southeast and invited them to an exchange of relevant information. In 2001, the Asheville Forum was born with nine founding practices. Since that time the OrthoForum has grown to four regional forums including the Amelia Island, Asheville, Reynolds Plantation and Western Forums consisting of 76 practices in almost 30 states. Each regional forum is composed of 15-20 groups and is engaged in the sharing of practice data including revenue and expense by practice and physician, ancillary services statistics, surgery counts, etc. as well as the sharing of pertinent ideas and strategies. The exchange and benchmarking of data provide each
member the ability to grow and learn best practices from other groups in similar settings and with similar approaches. In 2008 the OrthoForum began investigating how it could leverage the size and reputation of the member groups to purchase services and products including durable medical equipment, medical and office supplies and insurance. To pursue these opportunities several task forces were formed including a Group Purchasing Alliance, an Alternative Risk Financing vehicle for medical malpractice insurance and a Political Action effort. The Alternative Risk Financing task force contracted with Willis for the investigation of either a captive or risk retention group for their professional liability. The trust built among the practices over the years provided the ideal platform to commence discussions regarding retaining more of their own risk versus transferring it all to the commercial marketplace. Formation of Captive AMT: Glenn, please describe the motivating factors in the investigation of alternative risk financing for the OrthoForum? continued on page 8