A Guide to Health Care Insurance: Part 2

This post is part of a series sponsored by PCF Insurance Services.

In Part 1 of our series, we unpacked the complexities of medical malpractice insurance for individual healthcare providers. Now, let's focus on an equally important aspect: health center insurance.

In my role as a PCF Healthcare Practice leader, I have seen how important this insurance is, not only in helping to protect the physical facilities where healthcare is delivered, but also in helping to protect the professionals who work within those walls. This insurance is the backbone that supports all health center operations, from small clinics to large hospitals. It's about more than just reducing financial risk—it's about helping to maintain continuity of care, patient trust, and raising the standards of health care services.

In this section, we will consider the key elements recommended for health care facilities, explain why each part is important and how together they can form a shield that helps protect the heart of our health care system.

Comprehensive Coverage: The Basics of Health Care Facility Insurance

In the field of health care insurance, the first rule is to include everyone. It is not just about covering the facility or its employees but ensuring that both are fully covered under the medical malpractice policy. We have seen cases where the center is left out or only the center is covered, excluding individual doctors. Such gaps can leave serious risks for all parties.

Another important aspect that is often overlooked is internet liability insurance. Given that healthcare data is a prime target for cyber attacks, and considering strict regulations such as HIPAA, the cost of a data breach in the healthcare industry can be astronomical. In fact, healthcare records are considered nine times more important to hackers than other industries, highlighting the critical importance of strong cyber security measures. It is surprising how many healthcare facilities do not have adequate insurance against such cyber risks, which can expose them to crippling financial losses.

Additionally, it is wise for health care facilities to have both medical malpractice and general liability insurance provided by the same carrier. This approach helps reduce disputes about coverage obligations, which can arise from incidents that fall into the gray areas between the two types of coverage.

Finally, liability insurance plays an important role. This coverage is important to help protect against lawsuits from employees, vendors, and even non-employees who may claim discrimination for various reasons. In cases where the company itself cannot defend the case, this insurance becomes very important in protecting the people involved. Additionally, a comprehensive management liability plan can protect the personal assets of directors, officers and owners against lawsuits. This protection applies if the business they own or work for cannot pay or defend them due to financial difficulties or certain details of the claim.

Choosing the Right Insurance: A Guiding Hand

When it comes to choosing health center insurance, I resist going directly to the insurance carrier. Instead, a broker can act as a valuable consultant, offering insurance solutions that are tailored and fully sourced to match your specific needs. In addition, sellers are backed by errors and omissions insurance, which adds an extra layer of protection against potential defaults.

The details and specifications of insurances are very important. For example, we helped a doctor, who for years, worked only in his area and not as a single doctor. Such situations emphasize the importance of transparency in insurance policies, which helps ensure full coverage.

Insurance as a Risk Management Strategy

More than just a safety net, insurance is a strategic tool for managing risks and uncertainties. This is especially true in health care facilities, where the concept of total cost of loss is part of longevity. Insurance allows institutions to anticipate and help control unmanageable costs in their budgets, as well as profit and loss statements. This foresight can turn unknown potential costs into known values, facilitating more accurate planning and financial management.

In the event of a lawsuit, a strong insurance policy can free the agency from handling litigation independently. Insurance companies often negotiate rates with attorneys, resulting in lower defense costs and saving the agency time and resources. In fact, insurance can relieve major financial and administrative burdens, making the process more cost-effective and efficient.

Next Steps: Navigating Legal Space Bill 35

As we conclude our discussion on health facility insurance, it is evident that choosing the right insurance combination is essential for the effective operation and potential protection of health facilities. Looking ahead to the third installment of our series, we will shift our focus to the broader legal landscape surrounding health care insurance. In particular, we will explore the nuances and implications of Assembly Bill 35 and how it affects health care providers and services.

Understanding legislation like Assembly Bill 35 is important for health care professionals and facility managers, as it directly influences insurance policies and practices. We'll break down what this bill entails, its importance to the health care sector, and how it applies to insurance needs and strategies for health care facilities.

Stay tuned for this critical discussion, where we aim to provide clarity and guidance at the intersection of healthcare, insurance and law.

Is your health facility adequately protected? Contact a PCF Healthcare insurance specialist to explore your insurance options and help keep your property financially secure.