Human nature tends to dictate “follow the path of least resistance.” As physicians, we are no different, at least in this regard. During 2002, Arkansas physicians had to endure considerable angst and uncertainty when St Paul pulled out of the medical malpractice insurance market. At that time, most states that did not already have a medical malpractice company domiciled in their own state, established one-usually following the single state mutual model. This was accomplished with the help of their respective Medical Societies. Arkansas, for whatever reason, chose not to establish our own in-state company. We chose to go to out of state companies, and at the time I’m sure that seemed the most logical decision, especially considering what limited options were available at the time. The decision to go with an out of state company has provided Arkansas doctors with excellent malpractice coverage from an excellent company, however, there have been several aspects of this decision that now deserve examination.

Personally, I would like to know someone in the company that is entrusted to provide my malpractice coverage.

First, this decision has come with a cost burden being placed on the Arkansas physician. Arkansas physicians, quite frankly, have been overcharged for a number of years for this necessary expense. This claim is supported by numerous out of state companies entering the Arkansas market for these services during the last three years, and record profits of the insurers that were already in Arkansas. Sadly, guess who pays for those profits? You’re right, the Arkansas doctor!

Secondly, being subservient to out of state companies makes us again vulnerable to abandonment, as did occur when St. Paul left. Those companies can, and will, leave our state if they are not profitably providing coverage in our state. Having our own, in-state company, now eliminates that issue from occurring.

Third, as much as 60 to 70 million dollars has left our state each year for malpractice insurance. This financial shift of dollars out of state weakens our economy, not to mention job loss because of “outsourcing of services.” An example of this would be a family living in Jonesboro, Arkansas going to Memphis for their medical care, automobile maintenance, banking and grocery shopping. Those same services are offered in Jonesboro and are provided just as well there as in Memphis.

Fourth, Arkansas has not been as successful as some other states such as Texas, regarding Tort Reform. One of the reasons for this is that out of state companies have not taken aggressive action to implement tort reform legislation in Arkansas.

Ultimately, a physician’s peace of mind and financial security are at stake.

Fifth, do any of us really know anyone in the corporate offices of these other companies? Probably not. Personally, I would like to know someone in the company that is entrusted to provide my malpractice coverage.

Arkansas physicians are so blessed to have the Arkansas Medical Foundation. This organization supports impaired physicians, providing direction, guidance and rehabilitation, so that physician can get his/her life and practice back. Do these out of state companies support this foundation? Most of them do not. Arkansas Mutual recently gave a $10,000 grant to the Foundation. As we grow, these grant dollars will also be increased.

The last point to be made is that from 2002 until 2006, rates in Arkansas increased rather substantially. In fact, they did not start to decline significantly until 2008. So what changed? In 2008, Arkansas Mutual was established. Some people would argue that this is merely a coincidence but somehow I doubt that is the case.

There are, quite simply, numerous facts to consider when making a decision regarding malpractice insurance. That’s why the natural inclination and human nature would try and dictate the physician taking the path of least resistance and staying with their current provider or simply changing to the carrier that provides the cheapest rate. Cheaper, one year only rates, will often lead to much greater cost in the long run, especially in terms of malpractice insurance. Unfortunately, this aspect of a physician’s practice does not involve direct patient care, but is simply too important to ignore. Ultimately a physician’s peace of mind and financial security are at stake.

Like many of you, I’m a football fan. To be precise, a Razorback fan. I think it goes all the way back to being a six year old and remembering my dad carrying me on his shoulders to the 1969 Arkansas vs. Texas game. Dad was working on his doctorate in education at the University while supporting a family with five children. President Nixon’s helicopter landing next to the stadium was the coolest thing I had ever seen. The walk home was not as fun as the walk to the game but my love for the University was set.

Fast forward forty plus years and I now go to games as an alumnus with my U of A sophomore daughter and soon to be U of A freshman son. Changes have been made in the campus, the stadium, the conference and even the highway traveled to get there but the excitement of game day remains unbeatable. Going to Fayetteville, and occasionally Little Rock, for a Razorback game is always some of the best times of the year.

Okay, what does this have to do with Arkansas Mutual Insurance Company? On the surface not much, but bear with me a little longer and you may see the link. Arkansas Mutual is an Arkansas company founded by Arkansans with the sole purpose of protecting Arkansas physicians. It is 100% owned by Arkansas physicians. 100% of the physicians on the Board of Directors are Arkansas physicians. 100% of the policy-holders are Arkansas physicians. In short, like the name implies, an Arkansas company.

Now back to football. My son, Dylan Little, played football for Pulaski Academy. Last year they lost the last regular season game to Little Rock Christian which featured Arkansas’s all-time leading rusher, Michael Dyer. Recently they lost the 4A state-championship game to Shiloh Christian Academy. Shiloh’s Kiehl Frazier was named the game’s MVP. Now do you see where I’m going with this? For those that don’t, Michael Dyer broke Bo Jackson’s freshmen rushing record at Auburn University. Kiehl Frazier has committed to play football for Auburn. Arkansas boys like Lee Zimba and Cody Burns are also starters for the Auburn Tigers. When asked why he chose Auburn over the University of Arkansas Michael Dyer said it was because of his relationship with offensive coordinator, Gus Malzahn. You guessed it… another Arkansan.

Now I’m sure Auburn is a fine university. I just wish they would stay in Alabama to recruit. Of course if they did it would just make more room for other SEC teams to encroach. I cringe when remembering powerhouse Warren High School losing several future Hogs to Phil Fulmer at Tennessee about a decade ago. Just imagine if these great Arkansas players had stayed in state what a perennial powerhouse the Razorbacks could be. Or think of how we would have been without Arkansan’s Matt Jones, Darren McFadden, Peyton Hills, Brandon Burlsworth, D. J. Williams, etc…

The same is true with your medical malpractice insurance. Over $60,000,000 leaves the state each year for this coverage. This money is used to strengthen other state’s companies or increase stock value. Why not strengthen your own company? The product, which is your policy, has equivalent coverage with nose and tail coverage at no additional cost. Our policy-holders often remark that our service is superior to that of our out of state competition. The value is having your own company that cannot abandon you for sunnier pastures and is here to fight for your needs as well as your protection.

However just as Razorback football is not for every player, Arkansas Mutual is not for every physician. As are all good recruiting coordinators, we are very selective in our application screening. Arkansas Mutual strives to insure the best physicians in the state. We have turned away approximately 20% of our applicants. The reward for our owners is that we are in our third year of providing coverage for Arkansas doctors and have yet to have a paid claim. By combining this patient, strategic growth with our not-for-profit model, the owners of Arkansas Mutual can look forward to the best protection and lowest rates for years to come. Your state, your company, your future.