Also called "excess recovery funds," are state-operated programs that
afford excess insurance coverage for healthcare providers, including doctors,
hospitals, dentists, and some allied healthcare professionals. Such programs
cap a defendant healthcare provider's per claim exposure at an amount
specified in the state's statute. The fund pays any amount of a claim
exceeding this threshold. Patient's compensation funds are paid for by an
annual surcharge against healthcare providers, generally a percentage of the
provider's annual liability premium. Participating healthcare providers are
required to maintain liability limits in an amount no less than the threshold
at which the excess coverage applies.