The University of Vermont Health Network is set to relocate its captive insurance company from Bermuda to Vermont.
The move comes as a result of a unanimous decision by the board of directors of VMC Indemnity Company, the health network subsidiary, which provides medical malpractice insurance coverage for its medical providers.
As a consequence of the decision, a non-profit corporation will be established to become the UVM Health Network’s captive insurer.
The approval process it seeks from the Internal Revenue Service to operate as a tax-exempt organisation could take up to a year.
The redomestication will have no impact on the providers insured by the plan, or on healthcare cost in Vermont.
John Brumsted, president and CEO of the UVM Health Network and VMC Indemnity Company board member, said: “It is clear we can continue to provide low-cost, predictable insurance coverage to our providers if the company is located in Vermont.”
He added: “We strongly believe in doing business locally whenever possible, so we’re happy that being in Vermont is the best business decision in this case.”
Governor Phil Scott stated: “We’re pleased the UVM Health Network is moving their captive insurance plan home to Vermont, and hope this sends the message loud and clear to more organisations that this is a great place to do business and the best place to domicile captives.”