Insurance Risks (Tables)

12 Months Ended

Dec. 31, 2015

The provision for loss for insurance risks, including the cost of coverage maintained with unaffiliated commercial reinsurance and insurance carriers, follows (in thousands):

	Year ended December 31,
	2015			2014		2013
Professional liability:
Continuing operations	$	70,695		$	59,190	$	53,564
Discontinued operations		(4,053	)		8,073		31,061
Workers compensation:
Continuing operations	$	51,191		$	36,152	$	37,369
Discontinued operations		(3,695	)		2,110		11,976

Changes in Allowance for Professional Liability Risks and Workers Compensation Risks

Changes in the allowance for professional liability risks and workers compensation risks for the years ended December 31 follow (including discontinued operations) (in thousands):

	2015									2014
	Professional liability			Workers compensation			Total			Professional liability			Workers compensation			Total
Allowance for insurance risks at beginning of year	$	307,751		$	189,259		$	497,010		$	307,223		$	187,637		$	494,860
Provision for loss for retained insurance risks:
Current year		55,498			55,172			110,670			55,419			42,724			98,143
Prior years		(1,173	)		(18,151	)		(19,324	)		291			(12,438	)		(12,147	)
		54,325			37,021			91,346			55,710			30,286			85,996
Provision for reinsurance and insurance, administrative and overhead costs		12,317			10,475			22,792			11,553			7,976			19,529
Discount accretion		1,190			−			1,190			1,409			−			1,409
Contributions from managed facilities		220			344			564			300			254			554
Acquisitions		13,948			64,223			78,171			−			−			−
Payments for insurance risks:
Current year		(6,158	)		(11,483	)		(17,641	)		(7,539	)		(9,412	)		(16,951	)
Prior years		(68,611	)		(36,842	)		(105,453	)		(70,526	)		(24,594	)		(95,120	)
		(74,769	)		(48,325	)		(123,094	)		(78,065	)		(34,006	)		(112,071	)
Payments for reinsurance and insurance, administrative and overhead costs		(12,317	)		(10,475	)		(22,792	)		(11,553	)		(7,976	)		(19,529	)
Change in reinsurance and other recoverables		24,707			12,327			37,034			21,174			5,088			26,262
Allowance for insurance risks at end of year	$	327,372		$	254,849		$	582,221		$	307,751		$	189,259		$	497,010

	2013
	Professional liability			Workers compensation			Total
Allowance for insurance risks at beginning of year	$	290,718		$	193,361		$	484,079
Provision for loss for retained insurance risks:
Current year		68,631			51,136			119,767
Prior years		3,386			(7,378	)		(3,992	)
		72,017			43,758			115,775
Provision for reinsurance and insurance, administrative and overhead costs		12,608			5,587			18,195
Discount accretion		1,490			−			1,490
Contributions from managed facilities		250			250			500
Acquisitions		60			528			588
Payments for insurance risks:
Current year		(4,092	)		(10,651	)		(14,743	)
Prior years		(77,717	)		(31,441	)		(109,158	)
		(81,809	)		(42,092	)		(123,901	)
Payments for reinsurance and insurance, administrative and overhead costs		(12,608	)		(5,587	)		(18,195	)
Change in reinsurance and other recoverables		24,497			(8,168	)		16,329
Allowance for insurance risks at end of year	$	307,223		$	187,637		$	494,860

Assets and Liabilities Related to Insurance Risks

A summary of the assets and liabilities related to insurance risks included in the accompanying consolidated balance sheet at December 31 follows (in thousands):

	2015						2014
	Professional liability		Workers compensation		Total		Professional liability		Workers compensation		Total
Assets:
Current:
Insurance subsidiary investments	$	61,889	$	44,749	$	106,638	$	63,183	$	36,768	$	99,951
Reinsurance recoverables		9,282		1,020		10,302		7,376		−		7,376
Other		−		100		100		−		100		100
		71,171		45,869		117,040		70,559		36,868		107,427
Non-current:
Insurance subsidiary investments		82,207		122,291		204,498		84,210		81,835		166,045
Reinsurance and other recoverables		90,387		86,943		177,330		81,722		73,714		155,436
Deposits		3,980		4,337		8,317		3,879		1,428		5,307
Other		−		38		38		−		38		38
		176,574		213,609		390,183		169,811		157,015		326,826
	$	247,745	$	259,478	$	507,223	$	240,370	$	193,883	$	434,253
Liabilities:
Allowance for insurance risks:
Current	$	64,099	$	48,770	$	112,869	$	64,137	$	39,802	$	103,939
Non-current		263,273		206,079		469,352		243,614		149,457		393,071
	$	327,372	$	254,849	$	582,221	$	307,751	$	189,259	$	497,010