(a) The Commissioner of Health is hereby authorized and directed to procure a group insurance policy which shall cover the cost of Professional Liability Insurance for health care providers as defined in section 166(c) of this subchapter. Health care providers who engage in private practice and who participate in the group insurance policy procured by the Commissioner of Health shall reimburse the Government for their premiums, which reimbursement shall be deposited in the General Fund of the Treasury of the Virgin Islands. The Government of the Virgin Islands shall provide financial assistance toward the payment of premiums for health care providers who are employed by government agencies to perform or furnish health care on the following basis:
(1) For said health care providers exclusively employed by the Government of the Virgin Islands on a full-time basis, the entire premium shall be borne by the Government of the Virgin Islands.
(2) For said health care providers who, in addition to their employment with the Government of the Virgin Islands, engage on their own time in a private practice, one-half of the premium shall be paid for by said provider and one-half by the Government of the Virgin Islands.
(b) The coverage provided by the policy procured pursuant to subsection (a) of this section, or the coverage provided by the Self-Insurance Retention Program pursuant to subsection (f) of this section shall provide limits of liability of $250,000 for an injury suffered by a patient as a result of a single occurrence.
(c) The term of the insurance policy procured pursuant to subsection (a) of this section may be for a period of one or more years.
(d) The insurance policy obtained pursuant to this section may be procured by the Commissioner of Health without utilizing the competitive bidding procedures required by Title 31, chapter 23, VIC.
(e) Notwithstanding any other licensing provision of the Virgin Islands Code, a license to provide health care in the territory is effective only after the health care provider is covered by:
(1) the insurance policy procured pursuant to subsection (a) of this section, or
(2) the Self-Insurance Retention Program established pursuant to subsection (f) of this section, or
(3) any other insurance policy providing professional liability coverage of not less than $250,000 for an injury suffered by a patient as a result of a single occurrence.
(f) All health care providers who, in addition to their employment with the Government of the Virgin Islands, engage in a private practice and receive financial assistance toward the payment of their medical malpractice insurance premiums under this section, shall accept Medicare and Medicaid for payment of health care services from patients in their private practice, and in addition must provide medical services to veterans of the United States Military Services that are covered by an insurance carrier. The Commissioner of Health, after notice to the health care provider and opportunity for a hearing, shall fine any health care provider the Commissioner determines to be in violation of this subsection $1,000 for the first violation and for a second violation shall terminate all financial assistance toward the payment of the health care provider’s medical malpractice insurance premiums.
(g) In lieu of the procurement of a group insurance policy as set forth in subsection (a) of this section, the Commissioner of Health is authorized to self-insure health care providers against claims arising out of the rendering of, or failure to render, medical care or services, or against claims for injury or death to patients arising out of the activities of health care providers, upon compliance with the following conditions:
(1) Establishment of a Medical Malpractice Risk Management Trust Fund to provide coverage against professional medical malpractice liability, which Fund shall be managed by a licensed broker or brokerage firm. The investment plan of such firm shall be subject to the approval of the Medical Malpractice Action Review Committee; a maximum of one percent (1%) of the proceeds of such fund may be used by the Territorial Office of Risk Management as defined in subsection (h) of section 166 of this chapter, for administrative purposes. Interest accruing on such fund shall be retained or redeposited into such fund;
(2) Employment of professional consultants for loss prevention and claims management coordination under a risk management program, defense counsel to defend claims in suit and the payment of all legal fees and expenses, court costs, filing and recordation fees, service of process, costs and expenses of experts in connection with their advice and testimony, preparation of photographs, diagrams, chemical and physical analyses and the like, special investigations, costs of depositions, transcripts and copies, and all other reasonable out-of-pocket charges, fees, costs or expenses related or incidental to the defense, investigation, negotiation or settlement of claims for which the Department of Health and the St. Thomas and St. Croix Hospitals have self-insured; and
(3) Adherence to the limits of liability as set forth in subsection (b) of this section.
(h) In support of, or as a supplement to, a program of self-insurance, the Commissioner of Health is authorized to purchase medical malpractice insurance, specific excess insurance, and aggregate excess insurance, up to determined limits, as necessary to provide the insurance coverages authorized by this section, consistent with market availability. The Commissioner of Health is further authorized to procure such risk management services as may be required and to pay claims as may arise under any deductible provisions. In order to comply with this section, the Commissioner of Health shall be excluded from the provisions of Title 31, chapter 23, section 235, Virgin Islands Code.
(i) In fulfilling his duty to obtain insurance coverage for health care providers pursuant to this subchapter, the Commissioner of Health shall use the services of a firm of professional and experienced insurance brokers with expertise in the area of professional medical malpractice insurance in order to assist the Commissioner in designing and marketing the insurance program.