Physicians Ins. Co. of Ohio v. Grandview Hosp. and Medical Center, 10948
| Decision Date | 19 October 1988 |
| Docket Number | No. 10948,10948 |
| Citation | 44 Ohio App.3d 157,542 N.E.2d 706 |
| Parties | PHYSICIANS INSURANCE COMPANY OF OHIO, Appellant, v. GRANDVIEW HOSPITAL AND MEDICAL CENTER, Appellee. |
| Court | Ohio Court of Appeals |
Syllabus by the Court
"Self-insurance" is not "insurance."
Christopher J. Johnson, for appellant.
Jerome G. Menz, Xenia, for appellee.
On August 1, 1983, the defendant-appellee, Grandview Hospital and Medical Center, entered into a one-year "Resident-Hospital Contract" with Dr. Kedrin Van Steenwyk, D.O. The printed form employment contract spelled out in detail the rights and duties of each party and included the following provision:
"Grandview Hospital provides professional liability coverage through a blanket insurance policy for interns covering their professional activities in the Hospital."
During the contract period alleged medical malpractice occurred at the hospital involving Dr. Van Steenwyk which resulted in a medical malpractice complaint being filed against the resident, the hospital, and another D.O.
When the alleged malpractice occurred Van Steenwyk was covered by an individual professional liability policy issued by plaintiff-appellant, Physicians Insurance Company of Ohio ("PICO"). The PICO policy limited its liability to $200,000 for each medical incident. The policy also contained "other insurance" provisions which in effect reduced PICO's liability by requiring contribution if there was "other insurance" covering the same loss.
After the intern-hospital employment contract had been printed and before Van Steenwyk became a resident, Grandview elected to become what is commonly known as a "self-insurer."
The medical malpractice case was settled for $300,000 by PICO contributing its policy limit and by Grandview contributing $100,000.
While the malpractice case was pending PICO brought this action seeking a declaration that Grandview's above-quoted contractual obligation to its resident was "other insurance" within the meaning of the PICO policy.
PICO has appealed from the final order which in effect declared that the "Resident-Hospital Contract" was not "other insurance."
A New Jersey intermediate appellate court came to the same conclusion in a case involving similar facts in American Nurses Assn. v. Passaic Gen. Hosp. (1984), 192 N.J.Super. 486, 471 A.2d 66. It stated:
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