Captive Insurance Company
The Captive Insurance Company was developed by SHO in 2006 to ensure access, stability and affordability to medical and general liability insurance for hospitals and their employed physicians.
The Captive is owned and controlled by SHO for the benefit of five of its current Hospital members: Hendricks Regional Health, Henry County Hospital, Witham Health Services, Hancock Regional Hospital and Westview Medical Campus.
Unlike traditional insurance, the premiums paid belong to the hospitals.
Assuming good loss history, profits stay in the pool, rather than distributed to the shareholders of an insurance company. Ownership also allows the hospitals to control critical business decisions such as whether to fight or settle a claim. It also allows them the opportunity to identify best practices around risk management and quality improvement.
Long-term Captive benefits include:
- Usually less costly than insurance obtained in standard market
- Substantially lower expenses than insurance companies
- Created to operate at a break even
- Investment income generated while premiums remain in Captive
- Provides owners with much higher level of premium predictability
- Built around a solid group risk management program to reduce the losses
Hospital Services 