How to save $$ on medical malpractice insurance
Surgery associations offer discount programs
Are you spending too much for malpractice insurance? Same-day surgery associations are trying to find ways to help you save.
The cost of malpractice insurance varies greatly around the country, largely due to factors outside your control, such as how litigious your region is. For example, Florida and Southern California have high rates because lawsuits are more prevalent there, says Brad Shannon, vice president of James G. Parker Insurance Associates in Fresno, CA, which specializes in malpractice insurance.
But in many other areas, a program sponsored by the Alexandria, VA-based Federated Ambulatory Surgery Association (FASA) can offer substantial cost savings. In the program, FASA members receive a 15% discount off the base rate of Reliance Insurance Co. of New York City. James G. Parker Insurance Associates manages the program. While prices vary widely, an average malpractice insurance policy may cost a surgery center $15,000 a year, which would mean a possible savings of $2,250.
"This program provides purchasing power [for ambulatory surgery centers]," says Allen Hecht, executive vice president of SunSurgery Corp. in West Hartford, CT, and chairman of FASA's malpractice insurance committee. FASA organized the program as a service to its members and receives no compensation, he says.
The agency will check prices with various insurers to determine the lowest possible price, Shannon says. "[The Reliance rates] can't be competitive in all parts of the country," he says.
The Illinois Freestanding Surgery Association in St. Charles has negotiated a 20% discount for its members through the Physicians Insurance Company of Illinois in Oakbrook, IL. "We tried to tailor the program to better meet the needs of surgery centers," says Mark Mayo, executive director of the surgery association.
For example, the policies include coverage for directors and officers and for staff members and physicians who serve on the quality assurance and credentialing committees. Physicians affiliated with the center also may receive the 20% discount on medical malpractice insurance, he says.
Both programs have requirements for participation, in addition to association membership. In the FASA program, facilities must be accredited by the Skokie, IL-based Accreditation Association for Ambulatory Health Care .
The Illinois association has added some criteria that help lower the price of coverage. For example, nurse anesthetists must be under the direct supervision of an anesthesiologist, a policy that reduces liability risk and thus insurance costs, says Mayo.
The insurer also will provide free risk-management advice, including a site survey, Mayo says. "Malpractice insurance is an expensive item in anyone's budget," he says. "If there are ways to work with an insurance company to reduce your premium or next year's increase in premium, it's to your advantage to do so."
Mayo offers these other tips:
* Talk to insurance underwriters.
Make sure you understand how they determine your rates and judge your risks. You may be able to convince them to make a change that will save you money. For example, you may be entitled to a discount related to a low claims rate.
* Read your policy and riders.
Make sure changes don't adversely affect your coverage. For example, a language change may mean only physicians are covered as a part of your quality assurance committee, but your committee may include staff members who need to be covered as well.
* Check your classification.
If a surgery center is erroneously classified as a hospital, the cost of insurance could be too high. *
For more information about the FASA program, contact:
* Tina Pierce, Marketing Manager, James G.Parker
Insurance Associates, PO Box 3947, 5377 N. Fresno
St., Suite 101, Fresno, CA 93710. Telephone: (209)
222-7722. Fax: (209) 222-1724.
For more information on the Illinois program, contact:
* Mark Mayo, Executive Director, Illinois Freestanding
Surgery Association, 2210 Dean St., St. Charles, IL 60175. Telephone: (708) 584-9801. Fax: (708) 584-9805.
You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
- Award-winning Medical Content
- Latest Advances & Development in Medicine
- Unbiased Content