Our History
Founded in response to the medical malpractice crisis of the late 1980s, KAMMCO has set itself apart in the medical professional liability insurance industry for its commitment to the success of its members.
In 1989, KAMMCO was established for a fundemental purpose—to build a better future for Kansas physicians and their patients. KAMMCO has worked diligently to construct a provider and patient friendly environment, uniting and strenthening the healthcare community.
Tumultuous Times
To understand why KAMMCO was formed, we must look back to a tumultuous time for healthcare in Kansas. In the mid-1970s, Kansas healthcare providers were feeling the effects of a professional liability insurance crisis. Medical malpractice lawsuits were on the rise, and malpractice insurance rates were skyrocketing. Physicians and others were finding it difficult to obtain and afford coverage.
By 1988, faced with annual rate increases as high as 60 percent and the settling of non-meritorious lawsuits spiraling out of control, relief was desperately needed. Upon the recommendation of the KMS Executive Committee, the KMS House of Delegates endorsed the foundation of a mutual insurance company, and, as a result, KAMMCO was incorporated on March 20, 1989.
To address these concerns, the Kansas Medical Society (KMS) took the lead and successfully lobbied the state legislature in 197 for the creation of the Health Care Stabilization Fund (Fund). The purpose of the Fund was to provide access to adequate medical malpractice coverage.
The Fund allowed physicians and other healthcare professionals to obtain the coverage they needed. But as the frequency and severity of malpractice lawsuits continued to rise throughout the 1980s, it became clear the Fund was not enough. The medical malpractice climate had deteriorated into a system that readily rewarded plaintiffs' attorneys for filing frivolous claims. Rates were again soaring, and the number of companies offering coverage in Kansas had decreased.
KAMMCO's Commitment
From the outset, KAMMCO's leaders wanted to make the company different from the others offering professional liability coverage. Owwned and operated by members, KAMMCO guaranteed availability and affordability of coverage, as well as accountability where previously there had been none. KAMMCO's mission was to set the standard for prfessional liability insurance, including personal attention, innoviation, and financial responsibility. The professsional liability system needed to change, and KAMMCO was breaking new ground.
Building KAMMCO
KAMMCO issued its first policy in June 1989. Insurance companies that previously would not accept new applications were vigouroulsy competing for business. The first commercial medical professional liability insurance rate reduction in 10 years occurred within days of KAMMCO entering the market. Further rate reductions soon followed.
Tough on Defense
The protection of members is the foundation upon which KAMMCO was constructed. So, in 1992, KAMMCO stepped up its defense of non-meritorious claims with an increased emphasis on early reporting and member support and involvement during the claims process. Additional Medical Liability Analysts were hired to investigate claims and provide physicians with personal, one-on-one claims support.
Plaintiffs' attorneys learned that KAMMCO members were willing to stand up for themselves. One judge threatened to hold the Claims staff in contempt of court after KAMMCO refused to offer a settlement when it was clear the insured had not deviated from the accepted standard of care. The judge eventually sided with KAMMCO, although an insurance company had never taken such a stance before. The aggressive, "tough on defense" philosophy was paying off.
KAMMCO Today and Into the Future
KAMMCO is proud of the organization it has become—a member-owned mutual insurance company providing liability insurance protection to physicians, hospitals, dentists, medical groups, professional associations, and other healthcare professionals in Kansas and the surrounding region. Becoming the best professional liability insurance carrier and member advocate in the industry was part of the plan originally outlined by KAMMCO's founding members. KAMMCO is committed to fulfilling this vision while building a better future for all healthcare providers.
