Working in the health care
industry can be challenging as well as rewarding. Doctors get the opportunity
and the privilege to positively impact the lives of patients and their families
– helping them live healthier and perhaps happier lives.
However, when a patient suffers
an injury or a loss caused by the failure of the health care provider to ensure
the quality of care as required by law, medical malpractice or medical
negligence claims can be brought against the doctor or the entity that is
responsible.
A quick review of some medical malpractice facts and statistics and the
risk of malpractice litigation.
- A recent study released by the John Hopkins
University claims that more than 250,000 patients die from medical mistakes in
the United States each year, making medical malpractice or medical negligence
the third leading cause of preventable death in the US!
- Rand Corporation’s data on medical practice
lawsuits indicate that the average doctor spends over ten percent of his or her
career dealing with malpractice disputes and litigation.
- With an increase in severity and frequency of
medical malpractice claims in recent years, average costs involved in handling
these claims has risen by more than 50% since 2009.
- Payouts have also increased dramatically since 2015.
Multi-million-dollar medical malpractice verdicts in 2019, saw courts in
several states award significantly higher recoveries to plaintiffs injured by
medical negligence.
The Impact of Medical Malpractice lawsuits and the need for Doctors Medical Malpractice Insurance.
A fact that cannot be disputed is
that no medical specialty is safe from claims or lawsuits!
Negative consequences that come with
medical malpractice claims and lawsuits can affect both patients as well as health
care professionals.
- When claims occur, doctors are forced to divert
their time, finances and attention to legal matters. Loss of time from work can further impact
revenue.
- Being sued can be a life-changing event. Besides having to endure emotional, personal
and family distress, lawsuits can be expensive.
Without the right type and amount
of professional liability insurance, doctors risk losing their personal assets
– including their practices in a malpractice action.
What is Doctors Medical Malpractice Insurance?
Doctors Medical Malpractice
Insurance is Specialized Professional
Liability Insurance required in almost all states and a requirement by all
medical professionals who practice in the healthcare industry.
One of the most important
decisions that health care providers must make, is to purchase the right type
and amount of professional liability coverage, that financially protects
medical facilities, doctors and other medical workers in the event that a court
awards financial damages to a patient in a medical malpractice lawsuit.
Who needs Medical Malpractice Insurance?
Medical professionals who need
this coverage besides doctors and physicians, are dentists, dental hygienists,
pharmacists, pharmacy techs, optometrists, chiropractors, podiatrists,
osteopathic physicians, nurses, nurse-midwives, nurse practitioners, clinical
psychologists, physical and occupational therapists, speech therapists, social
workers and counselors.
- Most hospitals and medical facilities provide
medical malpractice coverage to their staff as part of an employment benefit. While these policies protect the organization,
doctors may consider buying additional medical malpractice insurance
independently, to protect themselves, especially when they are individually
named in a lawsuit or are independent contractor physicians. In such cases
medical professionals may be liable for part of the damages that the court
awards to the plaintiff.
- Self-employed Medical Professionals who have
their own practices, must perform due diligence to ensure that they have all
bases covered. After all, Medical
Malpractice Insurance could be one of the biggest expenses that contribute to
the overhead costs of running independent medical clinics and practices.
So what does a Doctors Malpractice Policy Cover?
Medical Malpractice Claims or
lawsuits could arise due to:
Professional Negligence
Even the best doctors can make
mistakes in the span of their careers.
While they may not necessarily be held responsible for a bad medical
outcome, they will however be held liable if reasonable care was not exercised in treating a patient.
Oversights and Errors
Diagnostic, Surgical and Medication
errors can lead to harmful and irreversible conditions that could cause serious
injury, disability and sometimes death.
Incomplete Services and Treatments
Incomplete and inaccurate
documentation and patient records can affect a patient’s treatment and
interfere in the continuum of care.
Faulty or Poor Services
It’s a well- known fact in the
medical and healthcare industry that it is easier to disappoint a patient than
to satisfy one!
Poor or faulty services can be
bad for business when bad patient reviews result in lost business or damaged
reputation.
But when patients suffer injuries
or die due to unsafe or poor quality healthcare, claims and lawsuits are likely
to follow.
Misrepresenting Services
False and deceptive advertising,
falsifying patient treatment plans or medical records could lead to allegations
of health care fraud.
Doctors Medical Malpractice Insurance
has more to offer than just providing:
·
Financial protection to cover the cost of legal
representation
·
Indemnity coverage for payouts that could arise due
to an adverse judgement in a professional liability claim.
In-fact, doctors can rely on the
mature and objective skills and expert advice of claim managers as well as the
guidance of experienced malpractice defense attorneys, to ensure quick and
successful resolution of claims.
Types of Medical Malpractice Insurance
Medical Malpractice Coverage is
basically of two types:
Occurrence Policy
Often, medical malpractice claims
arise months or even years after the actual treatment.
This type of policy provides
coverage for incidents that occur during a policy term, even if the claim is
filed after the policy lapses or is cancelled.
Being ‘long tailed’ policies,
they provide life-term coverage for both the patient and the doctor. This is very essential when doctors change
jobs, medical facilities close down or when doctors retire.
“Claims-made” policy
A ‘claims made’ policy is the
most common type of medical malpractice insurance and provides coverage as long
as the insurance premium is being paid.
Insureds will benefit from this
policy only when both the incident and malpractice claim are reported to the
insurer while the policy is active or ‘in-force’.
Malpractice Tail Coverage
Tail Coverage is required when a
claims made policy is cancelled or terminated.
In essence, it converts a claims-made policy to an occurrence policy and
provides protection from future claims based on past incidents.
Recent trends indicate that the medical malpractice segment is transitioning back to a hard market.
According to the Medical
Liability Monitor Annual Rate Survey, more than 25% of medical professional
liability (MPL) insurance premium rates increased in 2019 – the first time
that’s happened since 2006!