Anclote Psychiatric Center, Inc. - Page 13

                                                - 13 -                                                   

            Compensation Fund (FPCF) to provide liability coverage in excess                             
            of basic policy limits for its participant members.  Each                                    
            hospital was required to pay a yearly fee and assessments.                                   
                  Petitioner first became a participant in FPCF sometime                                 
            during the fund year 1977-78.  Pursuant to the FPCF statute, as                              
            in effect in the 1977-78 time frame, petitioner was self-insured                             
            for the first $100,000 per claim of liability and any excess                                 
            liability was to be paid by FPCF.  As of November 30, 1979,                                  
            petitioner had established a reserve fund of $345,000 for this                               
            purpose.  Subsequent to June 30, 1982, petitioner was insured for                            
            medical malpractice with a commercial insurance carrier, and the                             
            reserve fund reverted to working capital.                                                    
                  FPCF made a series of assessments against its members to                               
            cover the deficits arising from the costs of the claims exceeding                            
            the membership fees it had collected with respect to a fund year.                            
            These assessments represented a proration of the fund deficits                               
            among the members based on a formula composed of factors such as                             
            type of provider, net fees, and number of providers in each                                  
            class.  As of September 30, 1982, petitioner had been assessed                               
            $58,594 for coverage provided for the fund years 1977-78, 1978-                              
            79, and 1981-82, and $56,221 for the fund year 1979-80, for a                                
            total of $114,815.                                                                           
                  Member hospitals, including petitioner, filed a law suit                               
            against the State of Florida Department of Insurance and FPCF in                             





Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011