With this weekly column, Elite Healthcare provides readers with insight related to the legal implications of healthcare – offering practical guidance on scenarios that should be avoidable and providing suggested courses of action when appropriate. The examples provided here are those that all providers should be aware of, but many aren’t or are negligent despite their awareness. Don’t let your practice be compromised.
Lesson 3: Liability & Malpractice Insurance for Providers & Practices
Many professionals own their own practices, corporations, or businesses of some kin. Many of these same individuals are likely to have liability/malpractice insurance for themselves. But do they also have it in place for their corporation or business? This is an important question to ask and an essential question in which to be able to answer “yes.” The insurance is easy enough to obtain. Some liability insurance companies will give the corporate coverage gratis while others may charge a rate of only about 10% of the premium to add each corporate entity. If the provider is sued, typically, the corporation will also get sued. If the corporate name is not on the “face page” of the policy, the corporation is probably not covered. In many states, a corporation cannot be defended by the owner; it requires obtaining an attorney to defend the corporation. This can be expensive. Those providers who own their own business should ensure that is covered under their professional liability policy. If it is not, seek legal counsel.
References
- Dowell D, Haegerich TM, Chou R. CDC guideline for prescribing opioids for chronic pain — United States, 2016. CDC. 2016. Accessed online: www.cdc.gov/mmwr/volumes/65/rr/rr6501e1.htm
- What is GRADE? 2019. Accessed online: www.gradeworkinggroup.org
- Checklist for prescribing opioids for chronic pain. CDC. 2016. Accessed online: http://stacks.cdc.gov/view/cdc/380254.
Authors:
Joe Darrah is a freelance author based in the Philadelphia region who has been covering the healthcare field since 2004. He may be reached at [email protected]
Lawrence F. Kobak is senior counsel in the healthcare department at Frier Levitt, a national boutique healthcare law firm based in Uniondale, NY, that provides comprehensive regulatory, transactional, and litigation counsel to the healthcare and life sciences industries. He may be reached at [email protected]
