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 theprovider's officers, agents, and employees while acting in the courseand scope of their employment with the health care provider may beestablished under subdivision (1), (2), or (3):
(1) By the health care provider's insurance carrier filing with thecommissioner proof that the health care provider is insured bya policy of malpractice liability insurance in the amount of atleast two hundred fifty thousand dollars ($250,000) peroccurrence 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 thisarticle, the minimum annual aggregate insurance amount isas 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 maintenanceorganization (as defined in IC 27-13-1-19) or a limitedservice health maintenance organization (as defined inIC 27-13-34-4), the minimum annual aggregate insuranceamount is one million seven hundred fifty thousand dollars($1,750,000).
(C) If the health care provider is a health facility, theminimum 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 orsurety bond approved by the commissioner in the amounts setforth in subdivision (1).
(3) If the health care provider is a hospital or a psychiatrichospital, by submitting annually a verified financial statementthat, in the discretion of the commissioner, adequatelydemonstrates that the current and future financial responsibilityof the health care provider is sufficient to satisfy all potentialmalpractice claims incurred by the provider or the provider'sofficers, agents, and employees while acting in the course andscope of their employment up to a total of two hundred fiftythousand dollars ($250,000) per occurrence and annualaggregates 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 assurecontinued 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 maybe held in any manner mutually agreeable to the commissioner andthe health care provider. The agreement must provide that theprincipal may not be withdrawn before receiving the writtenpermission of the commissioner. However, any interest earned maybe 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 sizeof a hospital shall be considered to be the bed size publishedannually 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 professionalcorporation must establish financial responsibility separate from thepartnership or professional corporation, as well as pay the surchargerequired under IC 34-18-5. However, this section does not require ahealth care provider to qualify under this article.
As added by P.L.1-1998, SEC.13.