Tennessee officials last week took control of two struggling malpractice insurers, following a similar takeover by Virginia authorities of the carrier's parent company in that state.
The Tennessee Department of Commerce says the action involves Doctors Insurance Reciprocal, which covers about 50 to 60 physicians in the state, and Reciprocal Alliance, which covers some hospitals. Both companies are based in Tennessee, with operations in several southern states.
The companies' parent, Reciprocal of America, based in Virginia, was taken over by Virginia authorities last week after it failed to collect as much as $70 million last month from insured members to cover its losses.
Meanwhile, the Alabama Hospital Association reports that 46 hospitals and 800 physicians in Alabama are insured by Reciprocal and its subsidiaries and probably will have to look for new insurance.
Mississippi authorities report that Reciprocal insures more than 500 doctors and 44 hospitals in that state.