The Combined Organization will continue to provide primary liability, excess liability and workers’ compensation coverages to the healthcare industry.
ALAMO, Calif.--(BUSINESS WIRE)--In response to the growing tide of consolidation in healthcare as well as cyclical market conditions, the Boards of ALPHA Fund, a California joint powers authority and self-insured workers’ compensation program (“ALPHA”) and BETA Healthcare Group Risk Management Authority, a California joint powers authority and self-insured healthcare professional liability program (“BETARMA”) have approved a merger that would combine ALPHA and BETARMA into a single entity. The surviving entity would continue to be called BETA Risk Management Authority, or BETARMA. Upon approval of the merger by a majority of the members of both organizations, the merger is expected to close in early January, 2017. In the meantime, both organizations will continue to provide the high quality of insurance, risk management and loss prevention products and services they have provided their members for more than 35 years.
“As we look at the changing landscape of healthcare, the consolidation of providers and insurers, and the struggles facing local community and rural hospitals and clinics, ALPHA and BETARMA believe they are stronger together serving the insurance and risk management needs of the healthcare industry,” said Dave McGhee, CEO of ALPHA.
Significant Advantages are to be Gained by this Merger.
With a broader membership base, the consolidated organization will be better positioned to serve its members despite the mergers and consolidations occurring in the healthcare industry that are shrinking the pool of prospective members. Members’ premiums will support overhead for one consolidated organization instead of two, avoiding duplicate expense while providing valuable economies of scale. One consolidated organization with multiple lines of coverage and products, combined with a commitment to adequate rates and reserves will reduce the risk to cyclical market conditions.
“The proposed merger is a win-win for both organizations, their members and employees. Our two organizations have similar organizational structures and philosophies, as well as common members and brokers. By combining the two organizations, we are strengthening our position in the market and giving our members the ability to place their liability and workers’ compensation risks with one organization,” said Tom Wander, CEO of BETARMA.
About ALPHA Fund
ALPHA Fund is California’s premier self-insured workers’ compensation Participant group serving public and non-profit healthcare organizations of all sizes. For 40 years, ALPHA Fund has provided a broad range of innovative safety and savings programs to diverse healthcare communities throughout California. ALPHA Fund’s professional staff provides a unique understanding of the workplace risks and needs of today’s healthcare workers. This expertise leads to a record of proven performance as ALPHA Fund remains the market leader in minimizing the personal, business and financial costs related to workplace injuries in healthcare environments. As true partners in employee safety, success is shared and made possible by the value driven ALPHA Fund programs and the outstanding commitment of our Participants. For more information, please visit www.alphafund.org.
About BETA Healthcare Group
BETA Healthcare Group is the largest professional liability insurer of hospitals in California, providing coverage to more than 200 hospitals and healthcare facilities. BETA also has a long-established commitment to physicians which continues to grow with BETA covering nearly 6,000 physicians and more than 50 medical groups. In addition to primary liability coverage, BETA provides an entire suite of alternative risk and insurance services, including excess liability coverage, third-party claims administration services, risk management consulting services and claims management consulting services. Whether with 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.