To say that
there is a crisis in medical malpractice insurance has
become almost a cliche.
Premiums are rising in every part of the country and, in
some areas, the costs of malpractice insurance has skyrocketed
to the point where doctors have staged "work slowdowns." Many
are closing their practices. This concerns not only hospitals,
but everyone else, since access to basic medical services
is jeopardized.
Quite often, physicians facing sudden and significant increases
in their insurance premiums have turned to hospitals for
financial assistance. Hospitals generally would like to help,
but often feel constrained by government regulations. Fortunately,
the Office of Inspector General recently issued informal
guidance suggesting that, in appropriate circumstances, such
assistance may not trigger enforcement actions under the
anti-kickback statute.
Henry Casale and Dan Mulholland,
partners of Horty, Springer & Mattern,
analyze the OIG's guidance on this subject and discuss other
legal and practical issues relating to how hospitals can
help physicians deal with the current malpractice insurance
crisis.
Topics covered include:
* Legal issues to consider, including the anti-kickback
statute, Stark law and tax-exempt organization rules.
* How far can the hospital go in providing financial assistance to physicians
to cover malpractice insurance premiums?
* Discussion of model contract provisions for malpractice insurance assistance.
* What can the hospital get in return?
* Does the hospital have to help everyone?
* Tips for helping doctors find insurance when they can't get it.
* What happens if a group can't get insurance?
* Beyond financial assistance: should the hospital and its physicians self-insure?
