Medical Trust

Trust vs Company

The South Pinellas Medical Trust is not an insurance company and is assessable.  There are many reasons, however, why member physicians should not be overly concerned about an assessment, and should value that the Trust is not operated as a company:

If we were a company, the Trust would have to make greater payments to the guaranty fund of the State of Florida. This fund bails out insurance companies with financial problems, such as those that suffered tremendous losses in the hurricane. Additionally we would be under dramatically increased regulation if we were a company.  The increased accounting costs alone would increase our expenses tremendously.


The longer a physician belongs to the Trust, the less likely he or she is to be assessed.  This is because we apply surpluses in past years to any deficits in later years.  Here's how it works:


Each year, the actuarial firm of Madison Consulting reviews the Trust's rates to make sure they are adequate to meet anticipated claims. The actuaries take into account our low expense costs and pass these along to member physicians. Additionally, since we are not seeking a profit, we do not need to add in a profit margin.

Stock and Mutual Companies vs. Medical Trust

Insurance companies can be structured in many different ways to mitigate the cost of policyholders' claims in a way that allows for company profit. Mutual and Trust companies are owned by their policyholders and use their profits to the policyholders' advantage. Mutual companies can be for profit or non-profit. The Trust returns all profits back to its members


Stock and Mutual Companies

The first type is called a stock company. When a stock company forms, it sells stock to stockholders to raise the money necessary to operate the business. Stockholders are not necessarily insured by the company, and insured’s do not necessarily own stock in the company. The company is in the business of selling insurance. Profits are returned as dividends to the stockholders, not the insured’s

Stock insurance companies, and some mutual insurance companies, need to pay overheads for their staff members and want to cut benefits and costs to make profits for investors and policyholders.

•              Insurance companies main concern is increasing the value of stock for its stock holders


Medical Trust

Medical Trust, although not as common as stock or mutual insurers, coverage is also provided by the medical trust. A member of a medical trust agrees to share the insurance responsibilities with all other members of the unincorporated group. In a sense, all members insure each other and share the losses with each other. A medical trust is managed by an attorney-in-fact who is empowered to handle all of the business of the trust

Medical Trust can be comprised of individuals or organizations, and their main goal is to reduce the overall insurance costs.

Medical Trust appoints a board made up of local doctors and surgeons along with an local attorney and an onsite medical malpractice specialist

In past years South Pinellas Medical Trust returned $Millions to its members.

Medical Trust main concern is their fellow members reputation and keeping cost low

Where would you like to have your Medical Malpractice Insurance needs?