DATE: June 22, 2021
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Medical Malpractice MOU with PRISM
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Memorandum of Understanding - Medical Malpractice Program with PRISM (Public Risk Innovation, Solutions, and Management), effective July 1, 2021, which will allow for the purchase of Supplemental Medical Malpractice insurance for the County of Fresno.
REPORT
There is no increase in Net County Cost associated with the recommended action. Insurance coverage for the medical providers at the County of Fresno is currently provided through self-insurance by the County. Adoption by your Board of the PRISM MOU will provide Medical Malpractice coverage by a program that combines self-insurance and excess insurance.
Each occurrence under this program is self-insured for the first $1 million with the excess insurance provided through PRISM. For calculation of loss distribution, losses are capped at $1 million per claim. Claims will be administered by the Human Resources Department, Risk Management Division. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board could choose not to approve the Department of Human Resources' recommendation and remain fully self-insured for this exposure. This is not recommended.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The 2021-22 annual premium for Pooled and Excess Insurance coverage through PRISM's Medical Malpractice Insurance program based upon the recommended $1 million Self-Insured Retention (SIR) per medical event is $275,836. The payment of premiums is charged to the Department of Human Resources, Risk Management Internal Services Fund, Org 8925. The Fund is supported by annual budgetary contributions based upon actuarial projections for the self-insured layer and excess coverage provided by PRISM.
DISCUSSION:
The County of Fresno is a long-tim...
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