Patient's Compensation Fund Frequently Asked Questions

The first step is to request a medical malpractice medical review panel.
Such a request must be sent to the Division of Administration, NOT the Patient’s Compensation Fund.

Where/How to send Medical Malpractice Review Request

All Medical Malpractice Claims are handled according to Louisiana Revised Statute 40:1231

P.O. Box 3718
Baton Rouge, LA 70821

627 N. 4th St. Ste. 2-300
Baton Rouge, LA 70802

8:00 AM - 4:30 PM Central United States Time Zone

Monday Thru Friday

Ken Schnauder, Executive Director

​to contact Mr. Schnauder, go to PCF's Contact Information

Please be advised that there are certain requirements for being self-insured:

1. Complete a self insured application. (Self-Insured Application)
2. Pay appropriate surcharge as outlined in the PCF rate manual and table.
3. Post security deposit (Certificate of Deposit, Letter of Credit, etc.) in the amount of $125,000.00,which has been deemed acceptable by the PCF Oversight Board.
4. Sign a security pledge agreement (this will be mailed to you upon receipt of the application, surcharge and security).

If previous coverage was claims made, an extended reporting endorsement (tail) would have to be purchased from the primary insurance carrier or you may post a second $125,000.00 security deposit to represent the tail coverage. The extended reporting endorsement (tail) for the Fund may be deferred until within 30 days of the date on which the self insurance coverage is terminated with the Fund. However, please be advised that the deferment must be requested in writing addressed to Mr. Ken H. Schnauder, Executive Director. Please note that if a tail surcharge is required at the time of termination that the quote will be based on the current rate package. If you do not wish to ask for the deferment of the PCF tail, you may go ahead and purchase the tail coverage.

Please note that the securities posted will have to remain on file with the PCF for a minimum of 3 years, or as long as there are pending claims against it, following the cancellation of the self insured policy.

Self insurance coverage through the Fund will start the date that the Fund has in its possession the application, the applicable surcharge and the security deposit. For further information, refer to our rules and regulations. (Paragraph 507)

PDF --  Conversion of Coverage to Self Insurance Process

Wire transfers are accepted.  Please follow the instructions in the linked pdf.

PDF --  Wire Surcharge Instructions

If you have further questions about a Surcharge Wire.
Contact:  Normeca Smith
              email: normeca.smith@la.gov
              phone: 225-342-5432 

Most ancillary health care providers, such as nurses, LPNs, lab techs, x-ray techs, physical therapist, etc who are employees of a hospital or clinic or group do not need to be individually enrolled in the PCF for coverage. It is part of the coverage provided by the hospital's coverage. However, there are  some  providers that will need to be individually enrolled in the PCF to obtain coverage. This would include pharmacists, advanced practice nurses, EMTs associated with an ambulance service, Locum Tenen physicians. If there is a question, please contact the office to ensure you are properly covered.

An occurrence policy is the same as what most people have on their cars and homes. It provides coverage for incidents that OCCUR during the life of the policy. If you cancel the policy and a claim comes in that occurred during the policy period, the claim should be covered. If the incident occurred before the effective date or after the termination date, it would not be covered. A claims made policy requires that the claim must have occurred during the policy period AND the policy must still be in place at the time a claim is filed. If a policy is not continued, the coverage is not continued for any claims that are received after the termination date of the policy, regardless of the fact that the incident occurred during the life of the prior policy. Claims made coverage is normally used for a new healthcare provider that is establishing a practice. The rates are lower and grow over a five year period. They never equal what an occurrence form of coverage would cost, but have the provision that the policy must be renewed for coverage to be continued.

This is an extended reporting endorsement that is necessary when a health care provider moves from a Claims Made form of coverage to an occurrence form or stops coverage all together and the health care provider had claims made coverage. This ensures that claims that are received or filed after the termination of the claims made coverage will be considered covered and the provider will be considered a qualified health care provider and eligible for the cap on damages and the personal protection afforded under the
medical malpractice act.

For new enrollees, the application and surcharge payment must be received on or before the date coverage is to be effective. For those providers with underlying insurance coverage, we will need a copy of a Certificate of Insurance.

Any licensed or certified health care provider is eligible. The definition per the statute is:

(10)  "Health care provider" means a person, partnership, limited liability partnership, limited  liability company, corporation, facility, or institution licensed or certified by this state to provide health care or professional services as a physician, hospital, nursing home, community blood center, tissue bank, dentist, registered or licensed practical nurse or certified nurse assistant, offshore health service provider, ambulance service under circumstances in which the provisions of R.S. 40:1299.39 are not applicable, certified registered nurse anesthetist, nurse midwife, licensed midwife, pharmacist, optometrist, podiatrist, chiropractor, physical therapist, occupational therapist, psychologist, social worker, licensed professional counselor, licensed perfusionist, or any nonprofit facility considered tax- exempt under Section 501(c)(3), Internal Revenue Code, pursuant to 26 U.S.C. 501(c)(3), for the diagnosis and treatment of cancer or cancer-related diseases, whether or not such a facility  is required to be licensed by this state, or any professional corporation a health care provider is authorized to form under the provisions of Title 12 of the Louisiana Revised Statutes of 1950, or any partnership, limited liability partnership, limited liability company, management company, or corporation whose business is conducted principally by health care providers, or an officer, employee, partner, member, shareholder, or agent thereof acting in the course and scope of his employment.

No it is not, at least not by any law. It may be required by a health care provider's underlying professional liability insurer since enrollment in the PCF may play a factor in the type of policy they write and the coverage they provide. It may also be required by a hospital or health insurance plans.

A health care provider who has an underlying insurance policy must provide proof of financial responsibility in the form of a Certificate of Insurance from the insurer evidencing, at a minimum, coverage limits of $100,000/$300,000. The health care provider must then pay the appropriate surcharge based on specialty/class as found in the PCF rate manual. If a provider wishes to be self-insured, a completed self- insured application, approved form of security in the amount of $125,000.00 (Letter of Credit, Certificate of Deposit, Bond, etc.), and pledge agreement is needed. If a new enrollee with underlying insurance coverage, either the insurance company/agent or the PCF must have the Certificate of Insurance and PCF surcharge payment on or before the effective date of coverage. A new self-insured enrollee, the completed application and security must be in our office on or before the effective date of coverage. All necessary forms and rates can be found on the web site. If the insurer has a standard Certificate of Insurance that contains all the necessary information as outlined on the PCF form, it can be substituted for the PCF form.

For physicians the PCF surcharge rate is based on the specialty, from which a class number is assigned and the type of coverage. If a facility, it will be based on your licensure, class and type of coverage. There is a list of specialties and their associated classes found in the rate manual. Once the class is determined it is used to find the PCF surcharge rate from our rate chart. The rate charts also show surcharge rates for hospitals, nursing homes, ambulatory surgical centers, dialysis centers, dentists, CRNA's, and the advanced practice nurses. The rate manual contains some additional surcharge rates for other health care providers not listed on the charts and some exceptions.

The PCF does allow discounts for working part time. These can be found in the rate manual.
They are based on a 40 hour work week and are as follows:
      35 hours of practice a month or less = 75% credit
      65 hours of practice a month or less = 50% credit
      85 hours of practice a month or less = 25% credit
      More than 85 hours a month = No credit

The PCF surcharge payment must be received by your insurance company/agent NO LATER than 30 days after the expiration of the PCF coverage and underlying policy, which should match. The insurer or agent will then forward payment along with your Certificate of Insurance to our office. Failure to pay the PCF surcharge timely could result in a gap in PCF coverage, even though there may not be a gap in the underlying policy. If your insurer or agent does not collect the PCF surcharge and forward it to the PCF, then the health care provider will be responsible for ensuring the check is received timely and a copy of the Certificate of Insurance submitted with the check. Specific questions or problems along these lines need to be addressed with the PCF surcharge staff. The PCF does send out reminder notices and expired coverage notices.

PCF invoices are sent 65 and 15 days prior to the expiration of the self-insured coverage. Proof that the security in the amount of $125,000.00 is still valid, the front page of the PCF application with the top portion completed (if nothing has changed within the practice) and the appropriate surcharge payment must be received by the PCF on or before the effective date. However, if more time is needed, please contact the staff of the surcharge section.

If PCF coverage is desired for the corporation (LLC,  AMPC,  Inc.)  or partnership,  then the answer  is  yes. All eligible owners and employees must be verified by our office. This is also important for a "doing business as" trade name. Such documentation ensures our records are complete and there can be a decision made regarding coverage and qualification should a claim be received. It also provides proof of PCF coverage for court proceedings.

Yes, the PCF surcharge can be pro-rated; however, when there is underlying insurance coverage, the effective dates nay not match as the effective date for PCF coverage will be determined by the date of payment of the PCF surcharge. The termination dates should match so the renewal dates match.

If the initial pro-rated time period is less than 8 months, the PCF will allow a provider to remain at 1^st year claims made; however, if the pro-rated period is 8 months or more, the provider must pay the 2^nd year claims made rate at the time of the PCF renewal.

Yes, upon request a pro-rated refund will be issued to the payee of the surcharge unless otherwise notified. Keep in mind that if Claims Made coverage is involved, an extended endorsement may be necessary for continued coverage and the refund can be applied towards that surcharge.

Providers have 45 days from the date of termination of their claims made policy to pay the PCF tail surcharge either directly to the PCF or the underlying insurer to forward to the PCF. In order to have PCF tail coverage, there must also be tail coverage with the underlying insurer, prior acts coverage with a new insurer or a self-insured security in the amount of $125,000 in place specifically for tail coverage. Tail coverage is not needed for providers with occurrence type of coverage. There are some exceptions regarding tail coverage and these can be found in the rate manual.

No, per the Medical Malpractice Act payment of the PCF surcharge is remitted on an annual basis and it must be paid in full for PCF coverage. It can be financed through a bank or finance company, but full payment must be made to the PCF.

PCF payment must be made to an insurer or agent on or before the effective date of coverage for new PCF enrollees and within 30 days of the expiration of the prior PCF coverage for renewals and to avoid gaps in PCF coverage. Insurers and agents then have 30 days from the date of receipt of the provider's payment to remit it to the PCF to avoid penalties for late remittance.

PDF --  Rules and Regulations.