Business Services Industry
Captives catching attention of the managed care industry.
Business Insurance, February, 1998 by Ceniceros, Roberto
LIHUE, Hawaii - Captive insurers can help health care companies better cope with the rapid change in the managed care industry, a risk manager says. However, health care companies initially should use captives only to cover risks they understand and can estimate accurately, said Mike Evans, vp and risk manager for Sutter Health.
Sutter Health owns and operates a wide variety of health care-related businesses, including hospitals, clinics and ancillary service companies. A captive is particularly important to Sutter - and possibly other health care companies - because capitated managed care contracts have left it little flexibility. Capitated contracts mean Sutter's revenue stream is fixed, and it can no longer stand market vagaries such as fluctuating insurance...
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