The Cooperative of American Physicians, Inc.-Mutual Protection Trust (CAP-MPT), a California provider of medical professional liability coverage, recently registered its 7,000th member in the course of setting records for membership growth in recent years.
Despite an uncertain climate in the medical liability industry, CAP-MPT set a record for membership growth in 2002 with a 17.2 percent net increase in membership. That surpassed the company’s previous high of 12 percent net growth, which was set the year before. Based on first quarter 2003 results, the company projects 13.8 percent growth this year.
Net membership growth is based on the total number of new members minus the number of members terminating. CAP-MPT’s net membership growth was achieved despite stricter underwriting standards in 2002, which saw a record number of applications declined.
“In a hardening market it is clear that CAP-MPT’s disciplines in underwriting, claims and risk management help us to become a very attractive alternative for California’s best physicians,” said James L. Weidner, CAP-MPT chief executive officer. “By concentrating our membership efforts on preferred physicians we are able to control the amount of money charged to our doctors for excellent medical professional liability coverage.”
Earlier this year CAP-MPT had announced a net overall rate increase of only two percent for 2003, resulting from a general rate increase of five percent, combined with a three percent credit for positive organizational performance. That compares with other providers’ rate increases, which generally run in the double digits.
Established in 1977, CAP-MPT today provides liability protection for the medical practices of more than 7,000 California physicians. Rated A (Excellent) by the A.M. Best Co., CAP-MPT is among the most successful physician-owned medical liability companies in the U.S.
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