Columbia-based PHT Services, a provider of risk management services to South Carolina’s health care industry, has agreed to merge with The Risk Authority Stanford, a health care risk management consulting firm headquartered in Palo Alto, Calif.
The boards of both firms announced Monday they unanimously agreed to sign a nonbinding letter of intent to which The Risk Authority will acquire all of the assets of PHT Services. The deal is expected to close in the second quarter of 2017.
The Risk Authority Stanford will continue to provide risk management services to the 30 S.C. hospitals now working with PHT Services, according to a news release. The 33 employees of PHT Services in South Carolina, who will join The Risk Authority, will continue to be based in the Aiken Building, at 201 Executive Center Drive. The release added that no layoffs are planned.
“We are looking forward to sharing our expertise and leveraging TRA’s innovative technologies here in the East,” Brian Teusink, president and CEO of PHT Services, said in a statement. “It will be exciting to provide our clients access to the best-in-class and most forward-thinking tools available to improve loss experience and create cost-effective risk management programs.”
The acquisition of PHT Services’ assets and operations will effectively double the staff and client base of The Risk Authority, which has 26 employees, while expanding the organization’s presence to the East Coast, the release stated.
“This acquisition pairs two world-class players in risk management services and sends a loud and clear message that innovation and data-driven techniques are the future of our industry,” said Jeff Driver, CEO of The Risk Authority and chief risk officer of Stanford Health Care and Stanford Children’s Health. “TRA’s prowess in professional liability dovetails nicely with PHTS’ deep experience in both liability and workers’ compensation.”
PHT Services, founded in 1993, provides group self-insurance programs for workers’ compensation, professional & general liability, and medical stop-loss to hospitals. PHT Services also provides solutions for other property and casualty needs, group and voluntary employee benefits, and contract security.
TRA Stanford’s origins are rooted within the Stanford University Medical Network, and it continues to provide all risk management services to the institution and its two captive insurance companies.