CHARLOTTE, N.C. - (Business Wire) Responding to the escalating risks posed by the growing use of technology, including the transmission, and storing of confidential medical and financial information, Premier Management Services Inc. (PIMS) today announced a new data privacy and network risk liability insurance product for healthcare facilities, available to Premier healthcare alliance members.
Developed exclusively for PIMS’ clients, the new insurance product integrates first- and third-party coverages into a single convenient policy form, essential coverage that is typically excluded by other liability insurance policies. Value enhancing additions include special proactive risk management, crisis management and public relations services.
“PIMS is offering a unique, comprehensive suite of services to respond to data breaches,” said PIMS President Robert Dowdy. “Such problems will only get worse no matter how careful we are or how sophisticated we make our data protection systems. We continue to grow ever more dependent on wireless networks, laptops, the Internet and other Web-based technologies to conduct our business and transmit highly confidential information.”
PIMS is partnering with Media/Professional Insurance of Kansas City, Mo., to offer the new product. Highlights of coverage include crisis management and public relations expense, cost of notifying consumers as required by various state laws, expenses, fines and penalties arising from government and regulatory agency investigations into the handling of personal data.
In addition, the nationally recognized Internet, communications and data protection group of the national law firm Sonnenschein Nath & Rosenthal LLP will provide policyholders with risk management and planning advice, consultation, and education in this highly technical area.
“Cyber security breaches are one of the most serious risks in healthcare data management today and this risk will continue to grow as the industry relies increasingly on sophisticated electronic technology,” said Michael Born, Vice President – Claims, Media/Professional Insurance. “There were more than 65 reported incidences of compromised healthcare information involving over 4 million records just last year. One study has estimated the average cost of a data breach to be nearly $200 per record. This is a serious risk.”
Data security breaches include such problems as lost or stolen laptops, backup tapes lost in transit, hackers, employees stealing information or allowing unauthorized access to it, internal security failures, flawed business practices, viruses, and improper information disposal.
About Premier Insurance Management Services Inc. (PIMS)
Incorporated in 1987, PIMS is an Illinois for-profit corporation wholly owned by Premier Inc. PIMS provides contracted management services for American Excess Insurance Exchange, Risk Retention Group (AEIX), and is attorney-in-fact for Premier Insurance Exchange, Risk Retention Group (PRx). PIMS also serves as program manager offering enhanced sponsored programs with leading commercial insurers through a comprehensive portfolio of property, casualty and employee benefit products. Other services include providing claims and risk management assessments and education offerings regarding medical professional liability for hospitals and their physicians.
About Premier Inc., 2006 Malcolm Baldrige National Quality Award recipient
Serving more than 2,000 U.S. hospitals and 53,000-plus other healthcare sites, the Premier healthcare alliance and its members are transforming healthcare together. Owned by not-for-profit hospitals, Premier operates one of the leading healthcare purchasing networks and the nation's most comprehensive repository of hospital clinical and financial information. A subsidiary operates one of the nation's largest policy-holder owned, hospital professional liability risk-retention groups. A world leader in helping healthcare providers deliver dramatic improvements in care, Premier is working with the United Kingdom's National Health Service North West and the Centers for Medicare & Medicaid Services to improve hospital performance. Headquartered in San Diego, Premier has offices in Charlotte, N.C., Philadelphia and Washington. For more information, visit www.premierinc.com.
Premier Inc.
Henry Bostic, 704-733-5695
Henry_Bostic@Premierinc.com
