Insurance
Commercial crime policy

Funds of staff physicians are not property "owned" by the hospital within the meaning of a commercial crime policy.

"[T]he fact that a hospital is required by law to maintain a medical staff does not necessarily make the funds of staff physicians the property of the hospital. We agree.

Moreover, for the following reasons, we conclude that Meriter did not exercise possession or control over the account. In particular, Meriter did not have signatory authority or the ability to withdraw from the account. It did not deposit money into the account and did not decide how the money in the account was to be spent. In addition, Meriter did not report or pay taxes on the interest earned by the account and did not exercise any internal controls of the account or subject it to an internal or external audit. Based on these undisputed facts, we conclude that Meriter did not own the account. Accordingly, we conclude that the commercial crime policy does not cover the loss to the Medical Staff bank account under the ownership provision."

Affirmed.

Recommended for publication in the official reports.

2007AP1983 Meriter Health Services, Inc., v. Travelers Casualty & Surety Co. of America

Dist. IV, Dane County, Foust, J., Bridge, J.

Attorneys: For Appellant: Kurtz, Arthur E., Madison; Olson, Mitchell R., Madison; For Respondent: Klug, Thomas N., Milwaukee; Silver, Patryk , Madison

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