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A program in which a hospital and its affiliated physicians (i.e., physicians employed by the hospital and independent contractor physicians who have admitting privileges) are insured under a master medical malpractice policy issued by one insurer. Depending on the type of channeling program, the hospital and the physicians may or may not share limits of liability. The two advantages of channeling programs are cost effectiveness and a common defense team, which reduces the adversarial relationship when hospitals and physicians are named in the same malpractice suit. One downside of such arrangements is that they give the hospital considerable power over the claims administration process, so that physicians in a channeling program rarely have the authority to object to the settlement of a claim.

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