Alternative Risk Financing Consulting

Financing is the act or process of obtaining the funds required to carry out an organization’s mission. Risk financing focuses solely on raising or providing funds to pay for claims (both expenses and indemnity). Historically, the most popular choice for financing claims has been commercial insurance. Insurance works well when the losses to be incurred by the insured group as a whole are relatively predictable and when the losses sustained by any one entity are rare and random. Unfortunately, the reality of medical malpractice is that many organizations sustain losses and the ability to predict the losses of the group as a whole is diminishing as the size and types of claims escalate. Further, the structure of the insurance industry itself promotes wild swings in the pricing and availability of insurance. Alternative risk financing is simply the use of various methods to raise cash to pay for claims, other than just commercial insurance.

Fee based risk financing consulting (custom priced per project) services include:

  • Education and strategy sessions
  • Feasibility studies
  • Design services
  • Business Planning
  • Implementation
  • Vendor selection
  • Document preparation (policies, allocation models, etc.)
  • Ongoing consulting and analysis

Alternative risk financing solutions are usually undertaken by larger, more sophisticated healthcare providers. So, how large or sophisticated do you need to be? It’s hard to say for sure, but as a general rule of thumb you should be paying at least $1 million per year in premiums and have someone in the organization capable of and willing to become well versed in the alternative solutions being studied. In the initial interview process, we look for indicators as to if it would be a good idea to begin a project in the first place. Listed below are some of the indicators we typically look for here at Oros Risk Solutions:

  • Affordability of insurance issues
  • Availability of insurance issues
  • Desire to gain control
  • Need for flexibility
  • Being grossly overcharged for insurance
  • Your business being misunderstood by underwriters
  • Desire for access to reinsurance markets
  • Disgust with insurance companies
  • Negotiating tool in getting fair pricing from commercial insurers

An alternative risk financing consulting project done correctly would include a truly customized feasibility study tailored to your organization’s needs, an independently conducted actuarial study produced by a member in good standing of the Casualty Actuarial Society, and the advice of an independent knowledgeable tax and regulatory attorney. You can expect the representative from Oros Risk Solutions to begin with a full day strategy session with the senior management team of your organization. The goals will be to truly learn about your operation, what your problems are, and to offer you an in-depth overview of alternative risk financing methods.

The alternative risk financing experience, in general, should be one of self-discovery for an organization. You should feel that the solution was tailored to your specific needs, that it focused on the long-term cost of risk, and that it put you in “the driver’s seat” in controlling your future. You can rely on the professionals at Oros Risk Solutions to work with you as your trusted advisor to realize an efficient alternative risk financing solution.

Fill out and submit the contact form on this page, or call Oros Risk Solutions today at 1-866-596-3859 to arrange to speak with one of our knowledgeable specialists about Alternative Risk Financing Consulting.