Medical Directors generally are involved in credentialing, ensuring regulatory compliance, developing protocol and procedures, supervising ancillary personnel, coordinating medical care, providing patient care oversight, chart review, and other administrative duties. In this role, a physician takes on a great deal of responsibility; a Medical Director has greater risk of liability than one might realize which leads to the need of medical liability insurance.
Often physicians are asked to serve as Medical Director of various medical facilities, such as:
- Nursing Homes
- Surgery Centers
- Hospitals
- Medical Spas (or Medi-spas)
- Weight Loss Centers
- Chiropractic Clinics
- Or, in some states, clinics that are owned and operated by a Nurse Practitioner in solo practice.
Most importantly, a Medical Director faces a much different risk than in his/her medical practice. Medical liability insurance policies (also known as medical professional liability insurance or medical malpractice insurance) generally answer claims arising from clinical incidents resulting from direct patient care provided, but will exclude the acts associated with the Medical Director’s acts, duties, or decisions.
Since most Medical Directors duties do not include direct patient care the liability risk stems mostly from errors and omissions rather than medical care negligence. Because of this, it is absolutely necessary to maintain a separate medical liability insurance policy that is designed specifically for Medical Directors and the risks faced while occupying this role.
How to Ensure You Are Properly Insured for a Medical Director Role
- Check with your current medical liability insurance company, agent, or broker to determine if your insurance policy does in fact exclude Medical Directorships.
- Inquire the facility for which the Medical Director services are requested; most facility/clinic policies include a clause to answer claims made against the named Medical Director.
- One must be named on the policy as Medical Director for this coverage to be activated.
Final Conclusion
Finally, several medical liability insurance companies have developed policies in response to the tremendous increase in the number of active or planned Medical Directorships within the United States. These policies are comprehensive and provide adequate coverage for the unique liability risks associated with healthcare professionals working as Medical Directors. eQuoteMD representatives are definitely able to assist in the search for the appropriate medical liability insurance for Medical Directorships.
