AHA Selects Vertical Claims Management to Address the Health Care Liability Insurance Crisis.

Business Editors/Health/Medical Writers

WASHINGTON--(BUSINESS WIRE)--Jan. 27, 2004

Program improves administration of medical malpractice claims and

management of litigation 

Spiraling medical liability insurance premiums are forcing many hospitals to consider difficult decisions--from cutting services or closing facilities to being forced outside the traditional market to find liability coverage. The creation of an alternative insurance program can impose overwhelming responsibilities and tasks on a health care provider. AHA Financial Solutions, Inc., a subsidiary of the American Hospital Association (AHA), has awarded AHA's exclusive endorsement to Vertical Claims Management's (VCM) Vertical Advantage Program designed to assist health care entities in managing their liability insurance claims and potential litigation.

"Today's health care organizations are already stretched thin--both financially and in human resources. Those organizations that have selected alternative insurance solutions don't have the luxury of adding staff to manage the process," said Tony Spohn, vice president of member relations for AHA Financial Solutions. "VCM's Vertical Advantage Program can provide that needed assistance and deliver peace of mind that they are getting real expertise in a critical area of importance. As an added benefit, AHA has negotiated discounted pricing for our member organizations."

VCM's flexibility and plan customization allows facilities to have sound working relationships with any medical liability insurance broker and state regulatory agencies. When hospitals self-insure or assume alternate coverage, facilities can find themselves responsible for coverage reviews, compiling data for risk management, loss runs and managing claims and litigation. VCM provides hospitals a personalized claims administration plan, designates what information is needed for loss runs and risk management and prepares filings required by state insurance departments.

"We are extremely pleased to be entering into this alliance with the AHA to provide independent claims management services to its member organizations," said Clare Bello, president and chief operating officer of Vertical Claims Management, LLC. "We believe that we can offer crucial support services to health care facilities facing a difficult medical liability market. Through our claims management product, the Vertical Advantage, VCM offers the highest quality, most complete and most efficient claims management services to our customers. With our depth of experience in this area, we look forward to playing a part in creating solutions that the health care marketplace seeks in response to the current medical malpractice insurance crisis."

Through a partnership with Visibility, Inc.--an enterprise software and technical services company--VCM provides a premier collaborative litigation management solution. The customization and flexibility of Visibility's claims and litigation management system, in conjunction with VCM's exemplary medical liability claims management services, meet a vital need in the health care field. VCM has also partnered with Princeton Insurance Company to handle a portion of medical liability runoff claims in Western Pennsylvania.

The AHA VCM program will initially be offered to health care facilities in eighteen states that have been identified by AHA as those most severely effected by the medical liability insurance crisis. Those states are: Arkansas, Connecticut, Florida, Georgia, Illinois, Kentucky, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Washington and West Virginia. VCM will expand its offerings to other states as need demands. For additional information on the Vertical Advantage Program, contact Tony Spohn at 800-242-4677 or [e-mail].

About the AHA

The American Hospital Association is a not-for-profit association of health care provider organizations and individuals committed to health improvement of their communities. The AHA is the national advocate for its members, which includes 4,800 hospitals, health care systems, networks, and other providers of care, and 27,000 individuals. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA web site at www.aha.org.

About AHA Financial Solutions, Inc.

AHA Financial Solutions, Inc. (AHA-FSI) is the subsidiary of the American Hospital Association that collaborates with companies to create strategic financial, technology, regulatory, employee benefits and insurance products and services for health care professionals. It functions as a resource agency to AHA-member hospitals and other health care organizations. For more information, contact AHA-FSI at [phone] or visit the Web site at www.ahafinancialsolutions.com.

About Vertical Claims Management

Vertical Claims Management, LLC is an independent claims management company specifically designed to assist healthcare entities in the alternative insurance market manage their claims and direct litigation. VCM specializes in the management of medical professional liability and general liability claims for healthcare captives, risk retention groups, self-insured entities, as well as management of self-insured retentions in commercial programs. Because of our specialty in medical malpractice, VCM offers the highest quality of claims management to the health care entities entering the alternative insurance market.