• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

ABOUT US RESOURCES TESTIMONIALS BLOG CONTACT US

  • Home
  • About Us
  • Find Your State
  • Find Your Specialty
  • Choose a Facility
  • Resources
  • Testimonials
  • Blog
  • Contact Us
  • Request A Quote
Request A Quote

Don’t Sign That Contract

October 6, 2011

The number of physicians giving up their private practices and going to work for hospitals and healthcare systems is alarming.  The truth is that many of these physicians make the decision without consulting their medical malpractice insurance broker.  Before signing anything, a doctor should read all the fine print, speak to their broker, and get their attorney involved.  As the move toward employment continues to grow physicians need to be aware of a few important issues.

The trend is certainly not confined to any specific geographic area.  It’s happening on the West Coast, all over the Midwest, and in the Eastern U.S.  A recent article highlights the trend in the Southeast, specifically Florida.  In Jacksonville, one area hospital has become the 5th largest employer in the region.  The hospital stepped up its acquisitions of private practices in 2006.  So many doctors are leaving private practice to join hospitals in the area that it has healthcare advocates concerned there won’t be enough access to care in the future.  Adding to the concern is the millions of new, formerly uninsured patients that will be entering the U.S. healthcare system in the next several years.

Educate Yourself.  Weigh the Options.

It may turn out that becoming an employee of a system or hospital is the right move, but don’t do it without knowing the pros and cons.  Safety is the number one reason physicians give for moving out of private practice.  There are many unknowns in the future of healthcare, and with patient numbers down, Medicare and insurance reimbursements decreasing, and expenses on the rise, it’s no wonder doctors would rather find some protection in the shelter of a large employer.  Bring on the employment benefits like health insurance and retirement plans; say goodbye to risk, employee evaluations, and accounts receivables.  Sounds pretty good doesn’t it?

What Else Changes When a Physician Becomes Employed?

The first things to go are control and choice of a medical malpractice insurance policy.  Unless negotiated ahead of time, when a physician becomes an employee he is covered by the hospital’s malpractice insurance or a self-insured trust.  These plans don’t normally cover Prior Acts, which means the doctor will have to buy a tail (Extended Reporting Endorsement) to cover the exposure back to his Retroactive Date.

Tails are costly:  Premiums are 2 – 3 times the premium of the medical malpractice policy at the time of cancellation.  Some physicians end up spending $20,000 — $30,000 or more to purchase a tail.  This expense can be avoided by negotiating to keep an individual medical malpractice policy, or by requiring that the hospital pay the premium for the Tail.

Why Keep Your Own Malpractice Insurance Policy?

Physicians should negotiate to keep their own individual medical malpractice insurance policies for other reasons too.  When you have your own policy you know you have the right coverage.  Most doctors have no idea what the hospital’s insurance looks like.

  • What are the limits?
  • Do I have a “Consent to Settle Clause?”
  • Also, if you keep your own policy, you have an insurance company that has your best interest in mind (not the hospitals).
  • What if there’s a malpractice claim involving the doctor and the hospital?
  • Are there conflicts of interest?
  • Will you get the best defense possible?
  • Is the hospital going to deflect blame?

Final Conclusion

Another good reason to keep your own policy is that in most cases you pay lower premiums than what may be deducted from your paycheck for the hospital’s plan.  Don’t think their coverage is included free!  Somebody’s paying for it one way or another.  Lastly, you have access to a broker for help with questions.  You need an advocate.  Find a broker you can trust and keep your own medical malpractice insurance policy.  These are important issues if you are considering selling your practice and becoming employed, so don’t sign that contract without consulting your broker.

Filed Under: Uncategorized

Primary Sidebar

Categories

  • Ask eQuoteMD
  • Dental
  • Family Practice Physicians
  • General
  • insurance market
  • Malpractice Insurance
  • Malpractice Insurance Coverage
  • Medical Liability Insurance
  • Medical Liability Insurance Cost
  • Medical Malpractice
  • medical malpractice insurance
  • medical malpractice lawsuit
  • Neurosurgeon
  • OB/GYN
  • Physician Liability Insurance
  • Physician Liability Quotes
  • Plastic Surgeons
  • tail coverage
  • Telehealth
  • Uncategorized

Tags

Affordable Medical Malpractice Insurance best malpractice insurance Best Malpractice Insurance Near Me best medical malpractice insurance company best medical malpractice insurance near me claims made coverage damage caps defensive medicine dental malpractice insurance near me equotemd group medical malpractice insurance hipaa individual medical malpractice insurance kansas city medical malpractice insurance legal legislation liability malpractice insurance Malpractice Insurance Coverage malpractice insurance for doctors Malpractice Insurance near me malpractice insurance quote medical liability insurance Medical Liability Insurance near me medical malpractice medical malpractice coverage medical malpractice insurance medical malpractice insurance broker medical malpractice insurance companies medical malpractice insurance company Medical Malpractice Insurance for Family Medicine medical malpractice insurance near me Medical Malpractice Insurance provider medical malpractice insurance providers medical malpractice lawsuit medical professional liability insurance non-economic damages professional medical liability insurance research tail technology telehealth malpractice insurance telehealth malpractice insurance broker telemedicine malpractice insurance

Footer

eQuoteMD

BLOG

Concept of Malpractice Text written in paper

Medical practitioners dedicate their lives to providing the best care possible. However, no matter READ MORE

Medical law concept

As a healthcare professional, safeguarding your practice and career is crucial. Medical malpractice READ MORE

Medical malpractice book

Medical liability insurance, commonly known as medical malpractice insurance, is vital for READ MORE

FIND YOUR STATE FIND YOUR SPECIALTY CHOOSE A FACILITY

ABOUT US RESOURCES TESTIMONIALS BLOG CONTACT US

HOME ADA DISCLAIMER PRIVACY POLICY SITEMAP

Copyright © 2025 · eQuoteMD · All Rights Reserved

iHealthspot Medical Website Design and Medical Marketing by iHealthSpot.com

eQuoteMD provides medical malpractice insurance services in all states for all specialties.