Advocate MD enters Mississippi market through acquisition
Austin Business Journal
http://www.bizjournals.com
Advocate MD Insurance of the Southwest Inc. has acquired a Mississippi medical liability insurance carrier.
Austin-based Advocate MD bought Mississippi Medical Malpractice Availability Plan, a group with $25 million in assets.
The Mississippi Insurance Department recently expedited the application process and licensed Advocate MD as a fully admitted medical liability insurance carrier. The ability to expedite resulted from Mississippi’s success in tort reform several years ago.Â
“This move is seen as a step toward alleviating the critical shortage of experienced doctors and specialists within the state of Mississippi,” says Dr. Randy Easterling, chairman of the Mississippi Medical Association.
As a result of tort reform, the Mississippi Legislature created the Mississippi Medical Malpractice Availability Plan in 2003, which is available to most Mississippi-licensed health care providers and facilities. When the Legislature passed the bill creating MMAP, it was designed to be a five-year temporary plan. Tort reform has essentially allowed the state to successfully exit the medical liability business.
Advocate MD acquired MMAP as a launch pad for entering the Mississippi standard market. The company gained $25 million in assets by succeeding in a state-orchestrated competitive bidding process against two other national carriers to become one of the largest medical liability insurance providers in Mississippi.
“We are excited about expanding our business into Mississippi as it is a natural fit for us and is another step toward our national expansion goals,” says Advocate MD President and CEO Mark Adams. “We feel confident that we can draw more doctors and specialists back to Mississippi.”
Since its launch in July 2003, Advocate MD has grown to be the fourth largest underwriter of medical professional liability in Texas and continues to expand its reach.
