Most HMO's, non staff model, get sued for medical malpractice via vicarious liability. This means the patient perceives that the HMO employs the doctor or at least vets the doctors they provide. So if something goes wrong the plaintiff's counsel sues the doctor and the HMO since it is perceived that the doctor is an agent of the HMO and therefore the HMO is responsible for the doctor's actions.
1. Do not advertise that this hospital or medical group is a provider of XXX HMO. Also, do not advertise in the doctor's office. The more you advertise that a provider is yours the greater the likelihood the patient will feel the same and sue you and the provider.
2. Make sure that the medical groups and IPA's have adequate Errors and Omissions and Directors and Officers insurance and ask for proof of coverage. If the IPA or medical group gets named with you, you want to make sure that it has real insurance and that you and the HMO are not the only ones with coverage.
3. Make sure your credentialing is very tight and that you get proof of medical malpractice insurance for all MD's that you contract directly with and/ or indirectly via a group or IPA. Make sure that they are insured with $1 mill-$3 mill limits with "A" rated or higher (AM Best) insurers. Some doctors purchase insurance from weak insurers or risk retention groups. If they make an error and you get named with them, again you do not want to be the only one with coverage who responds.
4. Make sure you hold harmless agreements with the providers you contract with, providers and hospitals alike.
5. Educate the public that the providers are independent and not your employees. Put in your provider directories that all providers and hospitals are independent businesses not employed by your HMO.
About HCP National Insurance Services
HCP National provides risk management and insurance to the health care industry and others. We are experts in health care insurance, D&O and E&O insurance, Group Medical Malpractice Insurance, HMO reinsurance, provider stop loss insurance and all other insurance coverages. This is not legal advice. This is only risk management tools. Always review all risk management tactics with your attorney prior to implementation.Come visit our website at HCP National Insurance.
This article is not an insurance policy. All questions of insurance coverage are determined by your insurance policy. We are also not a law firm and we do not offer any legal advice.
