HEALTHCARE SURETY
Surety Bonds / Healthcare Surety
Healthcare organizations have unique surety bond needs. Competition and additional capacity have created a commercial surety marketplace that is hungry for strong, stable accounts such as those provided by healthcare systems, hospitals, and health plans. Significant savings can be found by replacing letters of credit and/or testing the marketplace on existing programs.
CONNECT WITH OUR TEAM
Types of Healthcare Bonds
Healthcare-Specific Bonds
- Patient Trust/Long-term Care
- Nursing Registry License
- Pharmaceutical Wholesale License
- Third-Party Administrator License
- Medicare DMEPOS
- Service Contract Performance
- State-Specific Medicaid Provider
- Medicare ACO Performance
- Medicaid Vendor Performance (MCO)
Other Common Bonds
- Notary/Notary E&O
- Higher Education/Degree Granting License
- Hazardous/Radioactive Material License
- Utility Payment Guarantee
- Subdivision/Construction
- Appeal/Other Judicial Bonds
- Unemployment Tax/Compensation
- Self-Insured Work Comp/PFML
- Insurance Deductible
Replacing Letters of Credit
There are many types of obligations which healthcare organizations secure with letters of credit during the course of regular business. Many of these obligations can be replaced with bonds. Our team has been able to achieve consistent savings over letter of credit pricing for our clients; sometimes as much as 50%. Other advantages to using surety bonds include:
- Surety bonds have no impact on credit capacity – put your line of credit to better use!
- Surety bonds are considered off-balance sheet obligations
- Surety bonds typically require proof of default instead of payment on demand
EPIC Healthcare Surety Experience
- Healthcare clients comprise over one-quarter of EPIC’s core commercial surety portfolio
- Place over $5 million premium annually for healthcare organizations; and
- Have over $600MM in outstanding liability for health plans and ACOs
- Negotiated with FL Medicaid for annually renewable bonds that limited liability to each region
- Negotiated bond forms with CMS for ACOs to allow for annual billing on multi-term obligations
- Wrote the approved language changes for AZ Medicaid’s performance bond form that restricted stacking liability
and allowed for annual billing - Negotiated the use of a surety bond with the State of Colorado for professional liability self-insurance
EPIC Healthcare Surety Team
EPIC is the only national broker to maintain personnel dedicated to the healthcare industry.
Tim Bowen places the surety business for all healthcare program accounts, regardless of location. As a result, he has an extensive knowledge base as well as a sizable book of healthcare clients that garners respect and drives results for our clients. Tim is an active member of the National Association of Surety Bond Producers, where he holds the position of Vice Chair of the 5-15 professionals group. He also serves on the Commercial Surety, Government Relations and Automation and Technology committees.
