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One of the most important aspects of a physician's employment agreement, and also one of the most frequently overlooked, is the section on medical malpractice coverage. After all, who wants to think about getting sued before they've even started a job? And if you have never been sued, to many, it seems like such an abstract idea that much attention is not often paid to the details. However, as any physician who has been sued will tell you, hardly any provision in your employment agreement is more important than this one. It's one of those things you don't really appreciate until you really need it. And then once you have needed it, you're overly appreciative if the coverage was sufficient.
So what type of coverage is "good enough"? Of course the answer to that question hinges on the specifics of the practice you will have, and sometimes, it depends on what state you're in. For instance, most physicians have heard that some med mal policies are "claims made" policies and others are "occurrence-based" policies. Claims-made policies typically cover any claims brought against the physician during the term of his or her employment. Since this type of policy only covers claims brought during employment, most physicians will want to also have provisions for a tail coverage policy to also be purchased following the end of the employment. On the other hand, occurance-based policies cover any claims brought at any time for acts or omissions occurring during the term of the employment.
Not only is the type of policy offered important, but the amounts of coverage offered are also important. Whether a coverage amount is sufficient will not only depend on the type of physician, but also, sometimes it depends on what state you're practicing in. Some states have patient compensation funds that kick in and cover some amount of the damages awarded to patients in medical malpractice suits. In those states, there are often minimum medical malpractice coverage requirements physicians must meet in order to qualify for participation in the funds. Obviously, whether your medical malpractice coverage terms are sufficient depends on many factors, not to mention how the actual language is written. So it's hugely important to have this part of your physician employment contract (and every other part of it) reviewed by your lawyer.
For more information on physician contract legal reviews, contact Leigh Ann O'Neill at 317-989-4833 or loneill@lauthoneill.com.
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