You are the Manager/CEO of a hospital and you just hired a new OB/GYN physician/surgeon. Your facility may need to provide malpractice insurance for this doctor with MD credentials. Obtain two quotes from two different malpractice insurance companies specializing in physician malpractice policies for a ten year practicing OB/GYN physician/ surgeon with delivery privileges. The insurance coverage quoted must be documented as either an occurrence or a claims made policy.
Please describe the financial impact of the cost of the malpractice insurance for the OB/GYN physician/surgeon on the hospital. Can the hospital legally provide this policy for the doctor? What means does the hospital have or what budgetary adjustments must be made to afford this policy? How will this additional cost require the hospital to set parameters on the productivity of this physician and the established charges for OB/GYN services? What other legal and ethical impacts will there be to the hospital and community?
1. Describe the financial impact of the cost of the malpractice insurance for the OB/GYN physician/surgeon on the hospital.
Soaring malpractice insurance premiums are forcing doctors to scale back their practices. According to the American Medical Association, 24% of specialists have stopped providing some high-risk services--like delivering babies. A 2002 survey by the American College of Obstetricians and Gynecologists found that 73% of OB/GYN specialists had been forced to retire, relocate or modify their practice.
The level of risk associated with a particular discipline determines the amount of malpractice insurance paid by the physician. Not surprisingly, the higher the risk the higher the cost. One reason rates are so high for OB/GYNs is that doctors get sued after difficult births leave babies with permanent disabilities.
2. Can the hospital legally provide this policy for the doctor?
Physicians usually buy their insurance from a commercial company or a physician-owned mutual company, either individually or through a group practice. Hospitals and other health care facilities purchase their own insurance, and hospitals that directly employ physicians typically buy ...
The solution examines legal and ethical impacts in hospitals and communities by providing malpractice insurance.