Eager to save money, Prospect Medical promised to “self-insure” malpractice claims brought against its doctors and hospitals. The chain’s bankruptcy now threatens to leave hundreds of patients whose claims are pending with no recourse.
  • Left Out: The failure of a hospital chain that provided its own malpractice insurance threatens to leave injured patients with no recourse.
  • Absent Oversight: States give little scrutiny to “self-insuring” health care companies. Agency officials say laws allow them to dodge normal safeguards.
  • Physician, Pay for Thyself: Doctors promised malpractice insurance have discovered they have no coverage for defense expenses and claims. One met with a bankruptcy lawyer.