CHAPTER 4. ESTABLISHMENT OF FINANCIAL RESPONSIBILITY
IC 34-18-4
Chapter 4. Establishment of Financial Responsibility
IC 34-18-4-1
Establishment of financial responsibility
Sec. 1. Financial responsibility of a health care provider and the
provider's officers, agents, and employees while acting in the course
and scope of their employment with the health care provider may be
established under subdivision (1), (2), or (3):
(1) By the health care provider's insurance carrier filing with the
commissioner proof that the health care provider is insured by
a policy of malpractice liability insurance in the amount of at
least two hundred fifty thousand dollars ($250,000) per
occurrence and seven hundred fifty thousand dollars ($750,000)
in the annual aggregate, except for the following:
(A) If the health care provider is a hospital, as defined in this
article, the minimum annual aggregate insurance amount is
as follows:
(i) For hospitals of not more than one hundred (100) beds,
five million dollars ($5,000,000).
(ii) For hospitals of more than one hundred (100) beds,
seven million five hundred thousand dollars ($7,500,000).
(B) If the health care provider is a health maintenance
organization (as defined in IC 27-13-1-19) or a limited
service health maintenance organization (as defined in
IC 27-13-34-4), the minimum annual aggregate insurance
amount is one million seven hundred fifty thousand dollars
($1,750,000).
(C) If the health care provider is a health facility, the
minimum annual aggregate insurance amount is as follows:
(i) For health facilities with not more than one hundred
(100) beds, seven hundred fifty thousand dollars
($750,000).
(ii) For health facilities with more than one hundred (100)
beds, one million two hundred fifty thousand dollars
($1,250,000).
(2) By filing and maintaining with the commissioner cash or
surety bond approved by the commissioner in the amounts set
forth in subdivision (1).
(3) If the health care provider is a hospital or a psychiatric
hospital, by submitting annually a verified financial statement
that, in the discretion of the commissioner, adequately
demonstrates that the current and future financial responsibility
of the health care provider is sufficient to satisfy all potential
malpractice claims incurred by the provider or the provider's
officers, agents, and employees while acting in the course and
scope of their employment up to a total of two hundred fifty
thousand dollars ($250,000) per occurrence and annual
aggregates as follows:
(A) For hospitals of not more than one hundred (100) beds,
five million dollars ($5,000,000).
(B) For hospitals of more than one hundred (100) beds,
seven million five hundred thousand dollars ($7,500,000).
The commissioner may require the deposit of security to assure
continued financial responsibility.
As added by P.L.1-1998, SEC.13. Amended by P.L.111-1998, SEC.6.
IC 34-18-4-2
Security; manner of holding; withdrawal
Sec. 2. Security provided under section 1(2) of this chapter may
be held in any manner mutually agreeable to the commissioner and
the health care provider. The agreement must provide that the
principal may not be withdrawn before receiving the written
permission of the commissioner. However, any interest earned may
be withdrawn at any time by the health care provider.
As added by P.L.1-1998, SEC.13.
IC 34-18-4-3
Hospital bed size determined by health department
Sec. 3. For the purposes of section 1 of this chapter, the bed size
of a hospital shall be considered to be the bed size published
annually by the state department of health.
As added by P.L.1-1998, SEC.13.
IC 34-18-4-4
Partners and members of professional corporations
Sec. 4. To establish financial responsibility under this chapter,
each individual who is a member of a partnership or professional
corporation must establish financial responsibility separate from the
partnership or professional corporation, as well as pay the surcharge
required under IC 34-18-5. However, this section does not require a
health care provider to qualify under this article.
As added by P.L.1-1998, SEC.13.