BETA Healthcare Group Returns Dividends Reducing Premiums by 30%-Plus for California-Based Healthcare Facilities

State’s Largest Hospital Liability Insurer Exemplifies Industry Best Practices; Delivers Unprecedented Dividends To Members Over Past Two Decades

ALAMO, Calif.--(BUSINESS WIRE)-- BETA Healthcare Group (BETA), the top provider of hospital professional liability coverage to California hospitals, healthcare facilities and medical groups, announced it will return $16 million in 2012 to BETA Risk Management Authority (BETARMA) members, reducing next year’s annual premiums by 32% on average.

BETARMA has paid dividends to members for 20 consecutive years totaling nearly $77 million—a move unsurpassed by any hospital professional liability (HPL) company in California, the nation’s largest healthcare market. This year’s $16 million dividend comes on the heels of $15.6 million in member dividends returned in 2011.

“In an environment of escalating healthcare costs, BETA’s focus on promoting value through service and price positions us as a true partner to our members,” said Tom Wander, CEO of BETA. “Our goal is to provide our members with pro-active education and support services that help their teams deliver optimal care while mitigating risk. Based on our strong financial performance, our focus and commitment are delivering exceptional results.”

BETARMA will return dividends totaling $6.3 million to its hospital and healthcare facility members as part of the July 1st renewals. It will also provide a special dividend—an additional $9.7 million—in August and has set aside an additional $40 million for future dividends. This year’s strong financial performance was driven, in large part, by a substantial reduction in claims costs, which resulted in a reserve release totaling $41.7 million

In the year ending 2011, BETA reported revenues of $86.4 million, with a net operating income of $33.4 million. From that, $11 million was allocated to BETARMA member dividends, $10 million to future dividends and $12.4 million to fund balance. Total assets for the organization grew 2% to $495.5 million, with cash and investments representing 85% of the total. Fund balance ended the year at $202.9 million of which $40 million is designated for future member dividends, which BETARMA expects to return to members over the next several years, keeping premiums close to current levels.

About BETA Healthcare Group

BETA Healthcare Group provides healthcare professional liability coverage to more than 150 hospitals and healthcare facilities in California. As the leading choice of liability insurers for California hospitals, BETA’s long-established commitment to California physicians continues to grow with more than 5,000 insured physicians and over 70 medical groups. Whether its hospitals, medical groups, clinics or hospices, BETA has earned a reputation for financial strength, rate stability, quality service and breadth of coverage that is unparalleled in the industry. For more information, please visit www.betahg.com.

BETA Healthcare GroupVicky Fanelli, 925-838-6070
[email protected]

Source: BETA Healthcare Group