Public Medical Malpractice Insurance: An Analysis of State-Operated Patient Compensation Funds

During the past three decades, medical malpractice insurance has experienced periodic crises of lack of available coverage and/or increased price of coverage.1 One solution in some states has been the implementation of public medical malpractice insurance plans, the most common type being Patient Compensation Funds (PCFs).2 By definition, PCFs offer insurance for medical malpractice liability that exceeds the specified threshold amounts covered by the insured provider’s primary insurance policy or qualified self-insured plan.3 The underlying rationale for public provision or reliance on private insurers other than stock companies is that the for-profit sector is an unreliable source of medical malpractice liability coverage. Faced with a few high loss claims, it is difficult for insurers to know whether