How medical misconduct insurance can save your practice

How medical misconduct insurance can save your practice

Most medical professionals were unable to survive a misconduct lawsuit. Health insurance enables medical professionals to continue their careers even if they are held liable for misconduct.

How many doctors could financially afford to pay the costs of a lawsuit? The answer would be anywhere between one and five percent of all healthcare professionals. This suggests that 95 percent of all healthcare providers would not be able to maintain their practice or institution if they were held liable in a lawsuit. Professional liability insurance not only pays the insured person’s legal fees, but also pays the premium amount up to the coverage limit acquired by the insured person.

The high cost of defending a lawsuit

Defense costs in these lawsuits rose from $ 15,000 per medical claim in 1991 to $ 29,500 in 2001. Defense costs for paid medical misconduct claims were more than, and almost, from $ 21,000 in 1991 to $ 44,000 in 2003 from $ 12,000 to $ 23,500 for no payment claims. This trend has continued in recent years. Research shows that the average cost of defending a lawsuit is $ 45,500 and the total liability cost related to the lawsuit is approximately $ 115,000 with the average payout for each plaintiff’s judgment averaging around half a million dollars.

Protect your employees and yourself from financial ruin

Most doctors will face at least one lawsuit in their professional careers. The best way to do this is to buy medical misconduct insurance from a reliable carrier. With the purchase of this insurance cover you transfer your defense costs and the obligation to pay to the health insurance company.

Keep the doors open after a suit

Without insuring yourself in today’s disputed environment, it would be almost impossible to keep a practice open. Based on the available statistical data, defense costs are prohibitively high for a lawsuit alone. If additional payouts, such as B. premiums are added to the compilation, most medical practices would be forced to close their doors. The medical professional liability insurance transfers the financial and legal burden to the carrier, so that the practice can be continued without additional legal and financial burden.

Special covers for practices (accounting errors & omissions, etc.)

Good, solid coverage isn’t just a proven way to protect yourself and your employees from complaints that cause harm. It is also a good idea for doctors and surgeries who do their own billing. It is also advisable to have sufficient protection to cover claims, double billing errors, billing for non-provided or unnecessary services that do not conform to standard nursing practices, and billing for residents’ surveillance . Even if it may seem trivial, these small costs can lead to big headaches. By including billing errors and omissions in your insurance package savers, you protect your practice from processing errors that could reduce your overhead.