Tag: malpractice

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Malpractice Tail Insurance? Pop The Question Before Your Next Job!

malpractice tail insurance

Since most training programs cover their trainees for malpractice insurance, it is probably the last item on your mind. And you already have enough residency and fellowship issues to worry about right now. Nevertheless, as soon as you apply for your first job, all that will change—malpractice insurance costs tens of thousands of dollars. Tail insurance can cost even more than the malpractice insurance itself. And, if you are not aware of this insurance, you can lose a bundle when/if you decide to change jobs. So, what exactly is malpractice insurance tail coverage, and why is it so critical to know how it works before taking that next job?

What Are The Different Types Of Malpractice Insurance?

First, we need to discuss some of the basics of malpractice insurance and the types of insurance policies. The two types of insurance policies you will often hear about are occurrence and claims-made policies. The least common type of malpractice insurance is called an occurrence policy. It covers all claims made before and after you leave a practice. Why is an occurrence policy less common? Simply because it is more expensive than claims-made plans.

On the other hand, a claims-made policy terminates right after you leave your job. So, if you stop working and are sued for a claim after you leave your employment, you will have no coverage. An attorney’s fees can be costly!

Malpractice Tail Insurance- A Gap Filler!

So, what does malpractice tail insurance do? Naturally, it covers any lawsuit claims from your old job after you change positions. The old claims-made policy does not cover these potential suits. This way, you will continue to have malpractice insurance if you leave. 

How Can Practices Weaponize This In A Negotiation?

Knowledge is power when it comes to negotiating a contract. And, frequently, many residents don’t know to ask about malpractice tail insurance. So, when changing jobs, they are stuck dealing with the following practice for malpractice tail insurance coverage as a benefit. This negotiation can potentially decrease the overall compensation package at the new job. In a worst-case scenario, you may have to flip the entire bill out of your pocket. 

And this sum of money is not insignificant. One article quoted the malpractice tail insurance costing 2.5 times the cost of malpractice insurance per year. In radiology malpractice insurance, this can translate into a 40-50 thousand-dollar bill. That money could have gone to paying down debt, buying a new house, or your kid’s college savings. And you could have potentially avoided all this loss by negotiating a tail in your first contract!

The Key To Knowing About Malpractice Tail Insurance!

I want to know what you are getting into before you take your next job. Other parts of the compensation package may be too good to overlook, and a claims-made policy without tail coverage may be relatively insignificant. Or, it can be a deal-breaker. Regardless, don’t let a new practice tell you they have excellent malpractice insurance coverage, only to find that you have an enormous bill to pay when you leave. Pop the question before you take your next radiology job!

 

 

 

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Should I Sell Out To The Legal Profession?

legal

Often radiologists deliberately take advantage of the opportunity to do legal consultation work for a fee. These services include expert witness work and legal brief consultations. Their colleagues deride some of these radiologists. Other physicians call this “selling out” to the lawyers. But is it? Today I will discuss why I think that radiologists who perform legal work provide some benefit not only to their financial well-being but also contribute to their own clinical and professional skills as a radiologist.

Better Understanding Of Radiology Malpractice

Nowadays, in the United States, radiologists encounter so many pitfalls that can potentially envelop them in a lawsuit. Sometimes the only way to avoid one is to observe others’ mistakes. Participating in legal work provides this window to see other radiologists’ errors and to understand how to prevent these hazards. We are only a hair’s width away from being involved in a lawsuit for our actions and vocabulary daily. Why not work to distance yourself from being the next lawsuit victim?

Improved Reports

Contrary to popular belief, involving oneself in legal work improves the readability of most radiologists’ reports instead of detracting from them. Those who do legal work are much less likely to leave grammar errors, typos, and other blunders in their reports. They tend to take the radiology report’s structure and final appearance much more seriously. Since they understand the ramifications of an unclear dictation, they are much less likely to confound their fellow clinicians with poor dictation.

Physicians participating in legal work are also more likely to know the jargon to not place in a report. Sometimes the wrong word choice can increase the chance of a lawsuit. Why not decrease the likelihood of it happening to you?

In addition, these radiologists tend to create differentials that consider the clinical situation because they know that subtleties can vastly change the outcomes of the patient’s management based on the malpractice outcomes of other radiologists. The final impression is more likely to consider these clinical issues, providing more benefit to the ordering clinicians.

More Thorough Documentation

Some radiologists do not take the documentation of conversations with clinicians seriously. Understanding the mechanics of malpractice increases the likelihood that a radiologist will document the critical findings and discussions with other doctors and patients. This information is vital not just for the attorneys but also crucial for the timeline of the medical record to allow for better treatment and an understanding of the events during a patient’s clinical stay.

Improved Communication With Fellow Physicians

Knowing what has happened in other malpractice situations also forces us to be more careful to communicate the results of a report on the phone or “in person” with other clinicians. Those that have completed malpractice work have a much lower threshold to trigger a phone call to their colleagues so that the report and the patient do not “slip through the cracks.” This understanding is only to the final benefit of patient care.

Is Legal Work Selling Out?

Based upon these tangible benefits of malpractice work, I think I make a case that participating in legal consultation is not “selling out.” Of course, some physicians abuse the legal system to make a quick buck and never learn from the mistakes of other radiologists. However, most radiologists that work with attorneys genuinely want to help their radiology colleagues and improve their clinical and professional skills as a radiologist. Maybe we should all consider doing some malpractice work at one time or another!

 

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Malpractice Insurance: What Physicians Need To Know

If you are just starting practice as an employee with a physician group, you may think you don’t really need to know that much about malpractice insurance. Few physicians have the resources available to defend against a malpractice claim when legal services can cost tens of thousands of dollars and damages or settlements can be hundreds of thousands of dollars. When deciding on a malpractice insurance policy, there are two types to take into consideration: a claims-made policy or an occurrence-based policy.

An occurrence-based policy provides insurance against incidents that occurred during the term of the policy regardless of when the claim is made. A claims-made policy covers the insured for any incidents that occur during the policy period, as long as the claim for the incident is also filed during the policy term. Neither of the policies will provide coverage for incidents that occur before the inception date of the policy.

Tail insurance refers to a policy that the insured can purchase when he discontinues his claims-made policy. The tail allows the insured to report claims for incidents that occurred during the time the policy was active (from the retroactive date to the policy expiration date) even though the policy has been terminated. Tail insurance is generally a onetime payment.. If a physician decides to change employment, wants to continue practicing medicine, and requires a new malpractice policy, tail insurance will be required to continue coverage for all incidents that may have occurred under the old policy. Many claims-made policies offer “free” tail coverage for death, disability, or permanent retirement.

Based on this information alone, it would seem logical that an occurrence-based policy is the best option. However, the two types of policies vary greatly. Depending on how mature a policy is, and the specifics of the policy, the sum of all claims-made premiums along with the cost of tail insurance can approach the sum of all occurrence-based premiums over the same period. If it can be determined that a physician will be eligible for free tail coverage (i.e., he is covered by the same policy through retirement), claims-made insurance is usually the most cost effective. If a physician knows there is a high likelihood of changing employment and malpractice insurance, he may want to compare pricing of the two options including the cost of the tail coverage in his calculations. For example, a physician may want to consider an occurrence-based policy if he knows he is going to work at a location for a short amount of time and will not be able to take the coverage with him.

What To Look For In A Carrier:

While premium costs can’t be ignored, a company’s fiscal soundness, claims handling, and sensitivity to policy holders are also important considerations. Ask about the carrier’s A.M. Best rating. Given the current state of the medical malpractice climate, a rating of A minus is good. Your state insurance commissioner’s office can provide information about insurers licensed in your state and may also be permitted to give information about complaints that have been filed against the insurer.