A different vision
Costante launched New Jersey insurance company that plays other roles
Patricia Costante is not one to shy away from difficult jobs. In fact, she’s made a career out of it. She founded MDAdvantage Insurance Company of New Jersey in 2002 even as other malpractice insurers serving the state failed, including the one where she worked. Costante was given the job of CEO of MIIX Group in 2001, specifically to wind down the company’s medical malpractice business, which insured 37% of New Jersey’s physicians. At the company’s height, it sold insurance in 26 states.
Costante believed that the root of MIIX Group’s problems was her predecessors’ decision to expand into states outside of New Jersey. Her vision for MDAdvantage—where she is board chair and CEO—is different, and includes three key tenets:
Insure only physicians and only in New Jersey.
Be 100% physician-owned with each insured physician owning one share. Costante and other executives don’t own shares in the company.
Provide educational programs, a peerreviewed journal, group discounts on products and other means to help physicians practice high-quality medicine and, thus, avoid lawsuits.
“I feel very strongly that we are a healthcare company, which is different than being just an insurance company,” Costante says. “So we provide a lot of resources to physicians, our insureds, as well as the general healthcare community.”
For her accomplishments, Costante, 53, has been chosen as the 2011 Trustee of the Year representing a for-profit healthcare company.
Launching MDAdvantage, based in Lawrenceville, N.J., wasn’t easy. New Jersey’s Department of Banking and Insurance granted Costante permission to open MDAdvantage in May 2002. But the department’s blessing