Risk Retention Group

The Risk Retention Group was developed by SHO in 2006 to ensure access, stability, and affordability to medical and general liability insurance for hospitals and their employed physicians. Since then insurance coverage for medical stop loss, workers compensation, and property has been added.

The Risk Retention Group is owned and controlled by SHO for the benefit of eight of its current Hospital members: Goshen Health, Hancock Health, Hendricks Regional Health, Henry Community Health, Johnson Memorial Health, Margaret Mary Health, Rush Memorial Hospital, and Witham Health Services.

Unlike traditional insurance, the premiums paid belong to the hospitals. Assuming good loss history, profits stay in the pool, rather than distributed to the shareholders of an insurance company. Ownership also allows the hospitals to control critical business decisions such as whether to fight or settle a claim. It also allows them the opportunity to identify best practices around risk management and quality improvement.

Long-term Risk Retention Group benefits include:

• Usually less costly than insurance obtained in standard market
• Substantially lower expenses than insurance companies
• Investment income generated while premiums remain in Risk Retention Group
• Provides owners with much higher level of premium predictability
• Built around a solid group risk management program to reduce the losses