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INDIANA DEPARTMENT OF INSURANCE

Bulletin 168
December 24, 2008
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 his 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, 2009.

PHYSICIANS

The surcharge for physicians has been reduced one-half of one percent (0.5%). A complete list of physician specialty class codes is published at 760 IAC 1-60.

CLASS  ANNUAL RATE 
$2,414 
3,218 
4,505 
5,792 
7,241 
9,653 
14,480 
22,525 
27,352 

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 a overall 5% decrease in surcharge for hospitals.

INDIANA DEPARTMENT OF INSURANCE
________________________________
James Atterholt, 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)  805.6  $0 
  Mental Health/Rehabilitation  402.8  $0 
  Extended Care/Intermediate Care/Residential  39.9  $0 
  Nursing Home/Critical Extended Care  402.8  $0 
  Health Institution/Assisted Living/Other  161.5  $0 
  Bassinets  805.6  $0 
# of Visits (in 100s)   
  Emergency Room  80.56  $0 
  Clinics/Others  40.28  $0 
  Mental Health/Rehabilitation  20.14  $0 
  Health Institution  16.11  $0 
  Home Health Care  40.28  $0 
Provide # of Surgeries/Births (in 100s)   
  Births  3,222.40  $0 
  Outpatient Surgeries  80.56  $0 
  Inpatient Surgeries  1,611.20  $0 
SUBTOTAL (A)  0.00 
Employed Physicians   
SUBTOTAL (B)   
   
Total of A & B  0.00 
Lack of Risk Management Program- 10% Penalty × total of A & B   
Hospital with > 500 beds 3% multiplier of total A & B   
TOTAL DUE  0.00 

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.

*Employed Physicians Sharing in Limits
The following rates reflect credits applied to the base rate.
# Physicians  Class 0  Rate  Total    # Physicians  Class 1        # Physicians  Class 2     
  Full-Time  2414.00  0.00      Full-Time  3218.00  0.00      Full-Time  4505.00  0.00 
  67% Teaching  796.62  0.00      67% Teaching  1061.94  0.00      67% Teaching  1486.65  0.00 
  0-12 hrs. 75%  603.50  0.00      0-12 hrs. 75%  804.50  0.00      0-12 hrs. 75%  1126.25  0.00 
  13-24 hrs. 50%  1207.00  0.00      13-24 hrs. 50%  1609.00  0.00      13-24 hrs. 50%  2252.50  0.00 
  25-30 hrs. 25%  1810.50  0.00      25-30 hrs. 25%  2413.50  0.00      25-30 hrs. 25%  3378.75  0.00 
  Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60   
    Total  0.00        Total  0.00        Total  0.00 
                           
# Physicians  Class 3        # Physicians  Class 4        # Physicians  Class 5     
  Full-Time  5792.00  0.00      Full-Time  7241.00  0.00      Full-Time  9653.00  0.00 
  67% Teaching  1911.36  0.00      67% Teaching  2389.53  0.00      67% Teaching  3185.49  0.00 
  0-12 hrs. 75%  1448.00  0.00      0-12 hrs. 75%  1810.25  0.00      0-12 hrs. 75%  2413.25  0.00 
  13-24 hrs. 50%  2896.00  0.00      13-24 hrs. 50%  3620.50  0.00      13-24 hrs. 50%  4826.50  0.00 
  25-30 hrs. 25%  4344.00  0.00      25-30 hrs. 25%  5430.75  0.00      25-30 hrs. 25%  7239.75  0.00 
  Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60   
    Total  0.00        Total  0.00        Total  0.00 
                           
# Physicians  Class 6        # Physicians  Class 7        # Physicians  Class 8     
  Full-Time  14480.00  0.00      Full-Time  22525.00  0.00      Full-Time  27352.00  0.00 
  67% Teaching  4778.40  0.00      67% Teaching  7433.25  0.00      67% Teaching  9026.16  0.00 
  0-12 hrs. 75%  3620.00  0.00      0-12 hrs. 75%  5631.25  0.00      0-12 hrs. 75%  6838.00  0.00 
  13-24 hrs. 50%  7240.00  0.00      13-24 hrs. 50%  11262.50  0.00      13-24 hrs. 50%  13676.00  0.00 
  25-30 hrs. 25%  10860.00  0.00      25-30 hrs. 25%  16893.75  0.00      25-30 hrs. 25%  20514.00  0.00 
  Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60        Fellowship  See 760 IAC 1-60   
    Total  0.00        Total  0.00        Total  0.00 
                           
                    Subtotal (B)  0.00 

Posted: 01/28/2009 by Legislative Services Agency

DIN: 20090128-IR-760090046NRA
Composed: Apr 29,2024 10:38:43AM EDT
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