Eager to save money, Prospect Medical promised to “self-insure” malpractice claims brought against its doctors and hospitals. The chain’s bankruptcy now threatens to leave hundreds of patients whose claims are pending with no recourse.
  • Left Out: The failure of a hospital chain that provided its own malpractice insurance threatens to leave injured patients with no recourse.
  • Absent Oversight: States give little scrutiny to “self-insuring” health care companies. Agency officials say laws allow them to dodge normal safeguards.
  • Physician, Pay for Thyself: Doctors promised malpractice insurance have discovered they have no coverage for defense expenses and claims. One met with a bankruptcy lawyer.
  • N0t_5ure@lemmy.world
    1·
    8 days ago

    Expect a lot more things like this to come out in all industries as the economy worsens. A thriving economy can hide a lot of financially problematic issues, in the same way a high tide can hide the rocks. As the economic tide recedes, all the ugly things below are revealed. This specific example involves the collapse of Prospect Medical, a for-profit hospital chain plundered by private equity. This is just the tip of the iceberg.

    • socphoenix@lemmy.world
      1·
      8 days ago

      Self insurance is also ridiculously common, so get ready to find a lot of defunct insurance when places start going bankrupt that were once seen as large entities.