Steward Health Care insurance mess leaves doctors liable for settlements

Steward Health Care’s in-house malpractice insurer arrangements have prompted a troubling pattern of doctors being held personally liable for settlement agreements, according to a DataBreaches[.]Net summary published on 28 December 2025. The article notes that in recent weeks, Superior Court judges in two counties have ruled that former Steward medical professionals must personally cover settlements, only for the insurer, Tailored Risk Assurance Co., or TRACO, to fail to cut the settlement checks.

In one case, defence counsel sought to withdraw after TRACO allegedly did not pay legal fees or defence costs. In another, plaintiffs sought disclosure of the defendant’s insurance coverage, saying they had “more than reasonable suspicion” that the doctor was being defended by an insurer whose policies are not real. Read more at Massachusetts Lawyers Weekly.