Crain’s: Buffett Ready to Defend NY Docs From Malpractice

Crain’s New York Business published an article on Berkshire Hathaway’s recent acquisition of malpractice insurer MLMIC. Berkshire Hathaway subsidiary National Indemnity Co. closed its $2.5 billion purchase of MLMIC on Oct. 1.

On Wednesday, Oct. 17, Berkshire Hathaway Chairman and CEO Warren Buffett appeared in a livestream video with MLMIC Chairman James Reed, M.D., who is also the President and CEO of St. Peter’s Health Partners. The two discussed the transaction and the health care industry.

From the article:

Buffet said he views medical malpractice coverage as particularly important because, unlike home or auto coverage, the insurer is defending a physician’s reputation.

“We’re going to defend the physicians,” he said, “even if sometimes it makes sense to settle and pay the lawyer’s fees and move on.”

Reed, who is also CEO of the nonprofit St. Peter’s Health Partners system in Albany, said changes in the health care industry, including the consolidation of medical practices and hospitals, have stoked fear among physicians.

“There’s a lot of uncertainty in New York state,” he said. “What we want to do is take this uncertainty off the table.”

To read the full article, click here.