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cost-effective medical malpractice insurance coverage that they need. Please visit our medical malpractice insurance blog for further reading.
Innovative Option Now Available For Ob-Gyn Group Medical Malpractice Insurance
Diederich Healthcare is proud to present an innovative and cost-effective option now available to Obstetrics/Gynecology groups for their medical professional liability insurance. Working with a National “A-Rated Insurance Carrier—participating groups can save 25% or more on their malpractice insurance premiums.
The program includes the following activities and resources:
- In-depth Medical Practice Site Survey by a Risk Management Consultant
- Hospital Ob-Focused Risk Mapping (with hospital consent)
- Patient Safety Information Survey
- Basic Ob Tool Kit (including prenatal & postpartum documentation forms, diagnostic test & referral tracking form, office & after hors telephone documentations form, procedure-specific consent forms, screening tool for postpartum depression, & MUCH more!)
- Patient Education Materials & Pamphlets (nutrition, bleeding, smoking cessation, etc.)
- Practice Management Tools
- Ob Risk Management Guidelines
- Risk Resource Phone Consultations
- Future Activities and Resources
Contact a Diederich Healthcare professional today at 800-457-7790 or complete our quick and easy quote form for further information about this exciting program!
2012 Medical Malpractice Payout Analysis Infographic Released
With the emergence of the National Practitioner Data Bank’s fourth quarter, 2011 which was released earlier this month (March, 2012), Diederich Healthcare has provided an insightful and informative Medical Malpractice Payout Analysis in the form of an infographic that will interest physicians nation-wide. By taking the raw, public data made available by the NPDB about medical malpractice payouts from 1992-2011, Diederich has created an easy to read graphic that will detail some interesting information gleaned by thorough analysis. The analysis takes a hard look at 2011’s medical malpractice payouts and charts that data in the form of bar graphs, pie charts and even a word cloud that creates an information-intense and visually appealing statistical representation. The analysis also compares 2011’s med-mal payouts with prior years. The infographic can be found on Diederich Healthcare’s web site at http://www.diederichhealthcare.com/medical-malpractice-insurance/2012-medical-malpractice-payout-analysis/.
Congress OKs Measure Averting 27.4% Physician Pay Cut
The US Senate and House approved a payroll tax package which includes a provision to stave off a 27.4% cut in physician Medicare payments that was scheduled to be effective tomorrow—March 1,2012. The bill also freezes physicians Medicare payment rates at their existing level until December 31, 2012.
To learn more, click here.
New York Medical Malpractice Insurance Environment Stabilizes
After the onslaught of activity, ignited by the injection of risk retention groups (RRGs) entering the New York Medical Malpractice Insurance market, it appears the “inventiveness” of the RRGs entrance has become yesterdays news. Once the talk of New York State, RRGs are now commonplace in the malpractice insurance arena. This leads to the question, “what lies in store for the medical community and citizens of New York?”.
Even though RRGs have been operating in New York for quite some time, they did not play a major role in the medical malpractice insurance market until 2007. In 2007 the premium crises occurring in New York created a void which was filled by the emergence of financially stable RRGs such Oceanus, RRG and Applied Medico Solutions, RRG. Initially the physicians unfairly placed in the New York Medical Malpractice Pool (MMIP) made the first leap of faith. Of these physicians placed in the Medical Malpractice Pool, many were prominent physicians in positions of power and influence such as department chairs at prestigious hospitals. Upset with the premiums required to provide their services to the hospitals, the influential physicians used their power and influence, along with the assistance of Jason Fuller, Vice President of the North Eastern Regional Office for Diederich Healthcare, to persuade hospital administration to review and finally accept certain RRGs such as Oceanus, RRG and Applied Medico Solutions, RRG.
The acceptance of risk retention groups in New York by prominent hospitals altered the career path of numerous physicians. Prior to 2007 the physicians with the ability to relocate had already moved. However, the physicians planning on making a move out of New York in the near future or considering early retirement due to the crises changed direction and/or stayed in New York and delayed retirement.
This directional change came about when two of the largest hospitals systems in New York opened their doors to physicians insured with RRGs. Once the doors were opened the word spread instantly. Soon Diederich Healthcare and the few brokers with access to risk retention groups were inundated with submissions from physicians for potential RRG placement. In addition, Mr. Fuller of Diederich Healthcare has continued his crusade with the prominent physicians to further broaden the acceptance of RRGs to hospitals throughout the state. And, this crusade continues today even with the substantial hospital acceptance and market stabilization.
Fast forward to 2012. Most all of the major hospitals are accepting RRGs and feel very secure with the physicians placing coverage with RRGs. The physician population is also comfortable with the new vehicle for medical malpractice protection. More importantly, the entire medical community as well as the New York general population is grateful for the benefit RRGs provide New York; the retention of the New York physician population. Thus the golden question is, “what lies in store for the medical community and citizens of New York?”. The answer is, “pay special attention to the upcoming presidential election”.
Cyber Liability Insurance Coverage
Are your computer records and patient information protected? A recent survey by research group Advisen found that despite increasing instances of cyber attacks, only about a third of companies that need cyber liability insurance coverage are protected. Most companies need cyber insurance but don’t realize they don’t have it until after a lawsuit is filed and it’s too late. It is estimated that more companies will purchase cyber liability policies in the near future due to new SEC requirements that publicly traded companies disclose a “description of relevant insurance coverage” to their shareholders.
Cyber liability protection is just as crucial for independent medical practices. If you maintain computerized patient information then you have the responsibility to protect those records. Any unauthorized release of information or outside cyber attack could violate patient privacy laws and expose you and/or your medical practice to a lawsuit. Diederich Healthcare is cognizant of your cyber liability and can advise and direct you to the proper coverage.
It is becoming more and more common for Medical Malpractice Insurance Carriers to include some form of Cyber Liability coverage in their basic policy form; however, coverage can vary from company to company. It is important to understand the depth of the coverage included to insure that coverage is in place to cover your company for potential indemnity regarding breach of privacy as well as attorney fees and costs to notify patients that their information was stolen.
Insurance against cyber attacks is certainly becoming a necessity, but varying policy coverage can make it difficult to fully understand the true protection provided. Contact a specialist at Diederich Healthcare for guidance with your Medical Malpractice and Cyber Liability Insurance coverage.
Risk Retention Groups and their impact in New York
The State with the largest demand for medical malpractice insurance alternatives has been New York. The New York medical malpractice insurance market has long been considered overburdened with high claims severity and overregulated by a Department of Insurance that has virtually taken control over the pricing of policies for traditional carriers. New York implemented a series of significant rate increases from 2003-2007 to correct artificially low rates and dwindling reserves from existing carriers. However, in the absence of significant reform, New York physicians are faced with the choice to pay higher premiums with traditional carriers or seek more competitive rates with alternatives such as Risk Retention Groups.
In 1986, Congress passed the Federal Risk Retention Act which provides a mechanism, for a Risk Retention Group (RRG) to operate in multiple states under one license. The Act states that an RRG must form as a liability insurance company under the laws of at least one state which is considered its state of domicile. Once domiciled in one state the RRG must be accepted by all other states, but the RRG must register in each state it wishes to write business. This RRG structure has become widely used as an alternative insurance option for healthcare providers that have difficulty affording or even finding coverage in traditional markets, such as New York.
Risk Retention Groups have several distinct advantages over a traditional insurance carrier including reduced licensing requirements, ability to market and operate nation-wide, and increased control. All these factors typically result in more competitive premiums than larger traditional carriers. However, because RRG’s are “non-admitted” companies that do not participate in New York’s Guarantee Fund (PLIGA) which provides coverage if an “admitted” carrier goes insolvent, physicians who join an RRG are not protected in the event of insolvency. Hospital privileges are another concern when considering coverage with an RRG. Since some hospitals and their bylaws will not accept coverage from certain RRG’s, physicians should inquire about this prior to joining.
Many physicians are faced with financial pressures, but lack the guidance and knowledge to properly evaluate the risk and benefits of an RRG. Diederich Healthcare’s experienced professionals can help New York physicians obtain quotes with traditional carriers and RRG’s, as well as weigh the benefits and disadvantages of the coverage.
-About Diederich Healthcare-
Diederich Healthcare provides comprehensive medical malpractice insurance and consulting services to over 13,000 healthcare providers throughout the United States, Guam, and Puerto Rico. Through Diederich’s seven (7) U.S. regional offices and multiple sales and service centers the company strives to provide superior client services. Physicians using us as a single source eliminate many of their hassles. As a leader in the industry for over 40 years, our goal is to deliver cost-effective quality insurance to our physician clients.
Diederich Healthcare is a nationally recognized insurance agency and can assist physicians with transferring their current coverage to a more cost-effective and comprehensive policy. Diederich also specializes in assisting group’s of five (5) physicians or more by creating a policy designed to meet the specific needs of the group.
Contact Diederich Healthcare to obtain a no-obligation free quote for your professional medical liability insurance. Diederich Healthcare understands the need to reduce a practice’s overhead expense and shopping for a new medical malpractice insurance carrier is one of the easiest ways to cut out unnecessary costs. Contact an agent at Diederich Healthcare today to see how today’s rates compare with your current policy. For more information on medical malpractice in new york click here.
Save Money on Tail Coverage
Physicians across the country are now able to secure affordable stand-alone tail coverage. In an effort to contain the costs of tail coverage for physicians, Diederich has taken the steps necessary in order to be able to provide cost-effective stand-alone tail coverage for physicians.
More frequent than ever, physicians have begun closing their private practices to seek stability as an employed medical provider with a large integrated health system. Many medical experts consider this “an evolutionary step in the healthcare industry,” while others believe that this is only a cyclical trend that is linked to the weakened economic environment within the United States. This trend has remained stable over the past year and many medical practitioners have chosen to relinquish their independence to seek shelter under the umbrella of a hospital or integrative medical program.
As one prepares to consolidate their practice, an important detail must be evaluated for those canceling a claims-made medical liability insurance policy. An extended reporting endorsement or “Tail Coverage” must be secured prior to cancelling a malpractice insurance policy to ensure that past patient exposure is still protected. One of the largest misconceptions with tail coverage is that “physicians are GUARANTEED free tail coverage if they are insured with a carrier for five (5) years or more.” This is a very inaccurate assumption that can either leave a physician with an unexpected last minute overhead expense or a gap in their professional medical liability insurance coverage.
The majority of state admitted medical malpractice insurance carriers only provide free tail coverage if a physician retires completely from the field of medicine after five (5) years of continuous coverage. Therefore, physicians moving to integrated health programs are left with the daunting task of purchasing their own extended reporting endorsement. As a rule of thumb, most tail policies will cost a physician 200% of the current annual premium. Therefore, a doctor is spending $20,000 annually on medical liability insurance coverage, can assume tail coverage to be about $40,000 upon the cancellation of their current policy. This is a large overhead expense and the agents at Diederich Healthcare understand the need for physicians to cut excessive overhead expenses during these trying times. Diederich Healthcare, one of the nation’s largest medical malpractice insurance agencies serving over 13,000 physician clients, can assist physicians by finding a more cost effective extended reporting endorsement or “Stand-Alone Tail Coverage”.
Paying 200% of a current policy’s premium to lock in tail coverage is not the only option and Diederich Healthcare is able to assist physicians by finding stand-alone tail policies for less than half the cost of a tail policy offered by the physician’s current insurance carrier. Extended reporting endorsements can be secured through nationally recognized insurance carriers rated “A (Excellent)” by A.M. Best Financial Stability Ratings and ensure physicians the highest level of coverage protection. Available coverage meets credentialing requirements and medical providers can be assured that the strength of the policy is not sacrificed for a competitive price.
-About Diederich Healthcare-
Diederich Healthcare provides comprehensive medical malpractice insurance and consulting services to over 13,000 healthcare providers throughout the United States, Guam, and Puerto Rico. Through Diederich’s seven (7) U.S. regional offices and multiple sales and service centers the company strives to provide superior client services. Physicians using us as a single source eliminate many of their hassles. As a leader in the industry for over 40 years, our goal is to deliver cost-effective quality insurance to our physician clients.
Diederich Healthcare is a nationally recognized insurance agency and can assist physicians with transferring their current coverage to a more cost-effective and comprehensive policy. Diederich also specializes in assisting group’s of five (5) physicians or more by creating a policy designed to meet the specific needs of the group.
Contact Diederich Healthcare to obtain a no-obligation free quote for your professional medical liability insurance. Diederich Healthcare understands the need to reduce a practice’s overhead expense and shopping for a new medical malpractice insurance carrier is one of the easiest ways to cut out unnecessary costs. Contact an agent at Diederich Healthcare today to see how today’s rates compare with your current policy. Additional information regarding tail coverage is available from the links below:
- Florida Stand-Alone Tail Coverage
- Georgia Stand-Alone Tail Coverage
- Kentucky Stand-Alone Tail Coverage
- Illinois Stand-Alone Tail Coverage
- Maryland Stand-Alone Tail Coverage
- New York Stand-Alone Tail Coverage
- North Carolina Stand-Alone Tail Coverage
- Ohio Stand-Alone Tail Coverage
- Pennsylvania Stand-Alone Tail Coverage
- South Carolina Stand-Alone Tail Coverage
- Washington Stand-Alone Tail Coverage
Moving from Private Practice to a Hospital or Regional Healthcare System
Giving up or selling your private practice to a hospital or regional healthcare system can involve unexpected expense and exposure. This alarming nationwide trend is luring private practice physicians with the expectation of a perceived safe-haven by being employed with an organization that “provides” the benefits of health and medical malpractice insurance, retirement benefits and an atmosphere free from the worries of employer related expenses, patient/government/insurance reimbursement collections and employee issues. For some physicians, and for a good number of reasons, this move can be the best decision; however, it could greatly benefit individual physicians both personally and financially to consult with a Medical Malpractice Insurance Professional/Agent before and during the negotiation process.
Physicians tend to assume that their only option for Medical Professional Liability Insurance will be the new organization’s group malpractice insurance or “self-insured” policy, and that this coverage will provide the same or better protection at a lower cost than their own personal policy. In many cases, the coverage available with the new group will differ with respect to the protection (Liability Limits, Tail Coverage, Consent to Settle) and choices (Availability to choose Legal Counsel, Insurance Company and use of a Qualified Malpractice Insurance Agent) of the individual physician, taking into account the best interests of the “organization” over the physician. Additionally, many transitional agreements from private practice to a hospital or medical system will not provide for the physician’s prior acts to be covered. This will result in the need for the individual physician to purchase an expensive extended reporting endorsement (Tail Coverage) in to address past exposure. This unexpected expense for Tail Coverage will normally cost 2 – 2 ½ times the premium of the expiring coverage already in place.
For the same reason that a physician would seek the expertise of an auto mechanic for a problem with their car, doctors should always consult with an insurance specialist/broker regarding the coverage for their professional exposure. A Medical Malpractice Insurance Broker will analyze the coverage offered and can assist in negotiating to keep a physician’s own individual malpractice insurance policy making certain that important details are maintained by the physician and unnecessary costs are avoided.
- Are prior acts covered?
- Do I need to purchase Tail Coverage?
- How do the limits of liability compare?
- Will the hospital/group settle a claim without my consent?
- Can I choose my own legal counsel?
- May I keep my own coverage?
To consult with a Medical Malpractice Insurance Specialist concerning your coverage, contact Diederich Healthcare at (800) 457-7790 or complete our free, no-obligation medical malpractice insurance quote form.
Tail Coverage for your Medical Malpractice Insurance Policy
The following post was written by one of our Medical Malpractice Insurance experts. If you are interested in seeing what Diederich Healthcare can do for you, please complete our quick and easy quote form now! Excellent, cost-effective Med-Mal coverage is only a click away.
Professional liability insurance should extend beyond the last date of the policy period of a policy on a “claims-made” basis. Claims can be made long after the medical treatment or occurrence that caused the injury. Most medical malpractice insurance policies are written on a claims-made basis, which means the insurance company pays only claims that are received during the policy period. In that case, a doctor needs tail coverage to protect against claims that are not known about at the end of the policy period. If a doctor retires, allows his malpractice insurance policy to lapse, and a claim comes in 2 years later, the physician will have to hire his own attorney to defend him against a claim or suit. He will also be responsible for any indemnity payment that is awarded to the patient or patient’s family.
In order to protect himself from the nightmare, the doctor purchases tail coverage. Tail coverage will extend the policy that covers the physician even after he is no longer practicing medicine. Policies can range from 1 year to an indefinite time period. For more information about tail coverage, please contact one of our professional liability specialists to guide you on this very important aspect of your medical malpractice insurance policy.
What about physicians who are difficult to insure?
The following post was written by one of our Medical Malpractice Insurance experts. If you are interested in seeing what Diederich Healthcare can do for you, please complete our quick and easy quote form now! Excellent, cost-effective Med-Mal coverage is only a click away.
I recently assisted a local OB/Gyn with obtaining high quality, affordable medical malpractice insurance coverage with an “A-rated” carrier when she believed that no standard, admitted carrier would be willing to cover her.
Until her one-and-only claim was settled for $750,000, this physician had been practicing obstetrics and gynecology for 20 years without ever having a malpractice insurance claim filed against her. In fact—her record was spotless for those 20 years.
While she had done nothing wrong—the situation was that the patient was a child who simply experienced a rare but known risk “bad outcome.” This physician settled the claim last summer to avoid the risk of a jury verdict which could possibly have exceeded her policy’s limits.
The Medical Protective Company then decided to non-renew this physician’s policy.
I worked with her and presented her case to the other carriers as an excellent physician with one unfortunate “shock claim” in an otherwise impeccable 20-year medical career. Several carriers agreed with us.
We replaced this physician’s MedPro policy with coverage from ProAssurance at approximately the same premium. We provided her with full prior acts coverage so she did not need to purchase expensive “tail” coverage from Medical Protective.
Note, that no matter how dire you believe your circumstances are—we at Diederich Healthcare can and will help you.
The following post was written by one of our Medical Malpractice Insurance experts. If you are interested in seeing what Diederich Healthcare can do for you, please complete our quick and easy quote form now! Excellent, cost-effective Med-Mal coverage is only a click away.
I recently assisted a local OB/Gyn with obtaining high quality, affordable medical malpractice insurance coverage with an “A-rated” carrier when she believed that no standard, admitted carrier would be willing to cover her.
Until her one-and-only claim was settled for $750,000, this physician had been practicing obstetrics and gynecology for 20 years without ever having a malpractice insurance claim filed against her. In fact—her record was spotless for those 20 years.
While she had done nothing wrong—the situation was that the patient was a child who simply experienced a rare but known risk “bad outcome.” This physician settled the claim last summer to avoid the risk of a jury verdict which could possibly have exceeded her policy’s limits.
The Medical Protective Company then decided to non-renew this physician’s policy.
I worked with her and presented her case to the other carriers as an excellent physician with one unfortunate “shock claim” in an otherwise impeccable 20-year medical career. Several carriers agreed with us.
We replaced this physician’s MedPro policy with coverage from ProAssurance at approximately the same premium. We provided her with full prior acts coverage so she did not need to purchase expensive “tail” coverage from Medical Protective.
Note, that no matter how dire you believe your circumstances are—we at Diederich Healthcare can and will help you.
