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Malpractice Tail Responsibility

  • 1.  Malpractice Tail Responsibility

    Posted 04-16-2018 14:37

    How do you handle the responsibility for payment for a malpractice tail when a partner leaves (not retires)?

    ·         Does the Practice pay?

    ·         Does the Radiologist pay?

    ·         Is it based on years of service?

     

    Your feedback is appreciated.

     

    Thank you.

     

    Keith Indeck

    Practice Administrator

    Radiologic Associates of Middletown

    Guilford Radiology

    Middletown Vein & Aesthetics

    860-346-8481 (Middletown)

    203-453-5123 (Guilford)

     

     



  • 2.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 14:40

    If we are terminating the physician, we pay the tail. If they are leaving to go to another group without retiring, they pay the tail.

     

    Thank you,

     

    Carol Hamilton, MBA, FRBMA, FACMPE, SHRM-SCP

    Chief Administrative Officer

    West County Radiological Group, Inc.

     

    West County Radiology Group was a 2016 and 2017 Top Workplaces in St. Louis Winner!

     

     

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  • 3.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 14:53
    We have a vesting schedule of five years. If they leave after five year we pay 100% of tail. If they leave after 4 years we pay 80%, and so on.

    --
    James Hamilton MHA, FRBMA, CMM
    Chief Administrative Officer
    Medical Imaging Physician, Inc.
    2591 Miamisburg Centerville Rd. Suite  302
    Dayton, Ohio 45459
    937-433-7622 x 108
    937-626-3043 cell
    jhamilton@mipimaging.com


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  • 4.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 15:46

    If employee is terminated (partner or non-partner), the group pays the tail.

     

    If employee leaves, they pay the tail.


    If employee retires, the malpractice carrier waives the tail.

     

    Ty Weber

    Chief Administrative Officer

    Northwest Imaging

    Kalispell, MT

    406-751-7545

     


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  • 5.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 16:03
    Any one who leaves pays their own tail unless retiring and the malpractice carrier provides free tail.


    Trusted to provide expert and caring radiology service for over 50 years

    Wayne Baldwin
    CEO
    (805) 879-7577

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  • 6.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 15:54

    This our practice as well.

    j






  • 7.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 14:47

    Clarification:  The Radiologist is leaving of his own volition.

     

    Thank you.

     

    Keith Indeck

    Practice Administrator

    Radiologic Associates of Middletown

    Guilford Radiology

    Middletown Vein & Aesthetics

    860-346-8481 (Middletown)

    203-453-5123 (Guilford)

     

     






  • 8.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 14:47

    We have a formula for shared tail (i.e. for every five years of service, the company pays an additional 25%).  Thus, if less than five years of service the employee pays, between 5 years and 20 years it is a shared responsibility and if over 20 years the company pays in full.

     

    Thanks,

    Mike Madler

    Newport Harbor Radiology

     






  • 9.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 14:52

    We have a clause that non-shareholders pay the tail if they voluntarily leave before 2 years of employment.  Otherwise, practice pays for everyone.

     

    Darlene Molenaar, COO

    Colorado Imaging Associates, P.C.

    Healthcare Business Services, LLC

    1819 Denver West Drive

    Building 26; Suite 101

    Lakewood, CO 80401

    Office:  303-416-1360

    Cell:  860-989-6008

    Fax:  303-416-1058

     






  • 10.  RE: Malpractice Tail Responsibility

    Posted 04-16-2018 17:04
    Keith,

    If anyone leaves our practice, they pay the tail.  However, if the radiologist retires completely from the practice of medicine and have been insured for at least 5 years with our malpractice company and are over 50 or 55 yo (  would need to double check), Pro Assurance will provide a free tail.  If the retiring doctor decides to practice again, he or she needs to repay the tail amount to Pro Assurance. 
     
    Please contact me via email or at 417-894-0878 if you have any questions. Thanks and have a wonderful day. 

    Jay Smith, CPA, MBA 
    Business Manager
    Litton & Giddings Radiological Associates, P.C. 
    1550 East Republic Road 
    Springfield, MO 65804 

    All information contained in this email is confidential (and may include Protected Health Information - PHI), belonging to the sender who is legally and/or medically privileged. The information is intended only for the use of the recipient named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or taking of any action based on the contents of this email is strictly prohibited. If you have received this email in error, please notify us and destroy the document immediately.





  • 11.  RE: Malpractice Tail Responsibility

    Posted 04-17-2018 13:05

    For us, the Physician pays for any termination event, including without cause.  Our Med Mal Insurer waives the tail for permanent retirement if covered under the policy for at least 1 year.

     

    Edwin W. Swager

    Radiologic Associates of Fredericksburg, CEO

    Virginia Medical Imaging, CEO

    540-361-1000

    10401 Spotsylvania Ave Suite 200

    Fredericksburg VA, 22408

    image001.png@01D1850C.226E49D0

     






  • 12.  RE: Malpractice Tail Responsibility

    Posted 04-17-2018 16:08
      |   view attached
    There was a Hot Topics poll on this subject about four years ago.  I'm not sure if the results would still be the same if the question were asked today, but there are 31 responses, so it's probably worth a look.  See the attached poll report.

    Please let me know if you have any questions (and if you'd like us to re-run the poll).

    Cynthia

    ------------------------------
    Cynthia Vervena
    Assoc Dir Data & Survey Research
    RBMA
    Fairfax VA
    (703) 621-3357
    ------------------------------

    Attachment(s)



  • 13.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 10:24
    Question for the practices who require the physician to purchase his or her own tail:  How do you enforce this policy to ensure your practice isn't left exposed without coverage (in the event the physician does not purchase tail)? If the physician doesn't purchase this tail coverage, technically, your group is on the hook, correct?

    ------------------------------
    Scott Fortson
    Practice Administrator
    Radiology Associates of Clearwater
    Clearwater FL
    (727) 441-3711
    ------------------------------



  • 14.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 10:31
    Scott,

    Here is the language from our employment agreement:

    1. Upon termination of employment with Corporation, for any reason, Employee shall obtain tail coverage or continuation policies covering Employee's and Corporation's liability for Employee's actions in the same amounts as those provided by Corporation as of termination, and Employee shall provide proof of same to Corporation at least thirty (30) days prior to termination of Employee's employment hereunder. In the event Employee fails to do so,  Corporation shall purchase such coverage on Employee's behalf and may offset its payment for said tail coverage against any sums which it might owe Employee, including but not limited to payments for salary, accounts receivable and/or under the Buy-Sell Agreement; provided, however, that any offset to deferred compensation subject to the provisions of Section 32 shall be limited in accordance with that Section.


    ------------------------------
    Jay Smith CPA, MBA
    Business Manager
    Litton & Giddings Rad. Assoc. PC
    Springfield MO
    (417) 894-0878
    ------------------------------



  • 15.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 10:39

    Our group is only on the hook for the corporate coverage for that physician. The other portion is individual coverage, so the physician is putting themselves at risk for having no insurance for priors.

     

    Like Jay's group, we have offered payment plans for the physician and deducted it from any earned year-end bonus amounts. Some groups take on physicians with prior acts coverage, so there is no need for the physician to purchase a tail in that case.

     

    Thank you,

     

    Carol Hamilton, MBA, FRBMA, FACMPE, SHRM-SCP

    Chief Administrative Officer

    West County Radiological Group, Inc.

    11475 Olde Cabin Road, Suite 200

    St. Louis, MO 63141

    P: 314-991-8201

    F: 314-991-8282

    C: 314-307-2518

     

    West County Radiology Group was a 2016 and 2017 Top Workplaces in St. Louis Winner!

     

     

    DISCLOSURE:

    This message is intended only for the use of the individual(s) to whom it is addressed and contains information that is privileged, confidential and exempt from disclosure under applicable law. Any further dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify me immediately by telephone or email.

     



    Disclaimer

    The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.

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  • 16.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 10:43
    Thanks Jay and Carol!

    ------------------------------
    Scott Fortson
    Practice Administrator
    Radiology Associates of Clearwater
    Clearwater FL
    (727) 441-3711
    ------------------------------



  • 17.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 11:14

    Your point is the reason why we decided to pay the tail in nearly all cases.  So far, we have not had to enforce the exception, which is someone leaving voluntarily in first 2 years of employment.  However, I think that most would be relying on the Radiologist's desire not to have that exposure, or they negotiate with their new employer to either cover the tail in the previous employer or provide "nose" coverage.  Some employers would want proof that new physician employee has coverage for prior acts.  If push came to shove, the group would pay the tail just to prevent the issue you describe. 

     

    Darlene Molenaar, COO

    Colorado Imaging Associates, P.C.

    Healthcare Business Services, LLC

    1819 Denver West Drive

    Building 26; Suite 101

    Lakewood, CO 80401

    Office:  303-416-1360

    Cell:  860-989-6008

    Fax:  303-416-1058

     






  • 18.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 11:33

    Our group places the sole responsibility of medical malpractice prior acts coverage, on the individual physician.  Our language is very similar to that provided by Jay.

    Many large insurers provide "free tails" for longevity tied to retirement from medicine fully.  If a physician is moving to another practice, their negotiation should probably include prior acts insurance, in my opinion.

    -Tom

     

    Thomas C. Dickerson, Ed.D, FACHE 

    Chief Executive Officer

    Clinical Radiologists, S.C. 

     

    Offices:

    3800 East Lake Centre Dr., Suite 100 Quincy, IL.62305

    3050 Montvale Dr. Suite A-Springfield, IL 62704

    o: (217) 222.9302 • m: (217) 257.1902 • f: (217) 222.9305 • e: dickersont@clinicalradiologist.com






  • 19.  RE: Malpractice Tail Responsibility

    Posted 04-30-2018 11:36

    This mirrors our practice as well.

    Tx-j






  • 20.  RE: Malpractice Tail Responsibility

    Posted 05-01-2018 12:21
    If your actions as an employee on behalf of your employer result in civil legal action, you would not normally expect to have to personally pay for your defense. Corporate law commonly provides that the actions of an employee must be indemnified by the employer unless there is willful negligence or criminal wrongdoing. 
    Does your state have a specific exemption for professionals?  If not, consider why the practice (if legally an employer) is not similarly obligated. (And just to address the most likely rationale, "We've always done it that way" carries very little weight!)

    ------------------------------
    Gregory M. Kusiak MBA, FRBMA
    Gregory M. Kusiak Consulting
    Oceanside, California
    (818) 424-0067
    ------------------------------