Page 6 - South Florida Hospital News July 2021

Steps From Holy Cross Hospital Malpractice Insurance

EXPERT ADVICE
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Med Mal Purchasing Groups Lower

Premiums, Provide Transparency

BY VANESSA ORR discuss claims openly,
though anonymously, of
Malpractice insurance course,” said Gracey. “In
is one of the largest a vendor/buyer relation-
x &Žƌ >ĞĂƐĞ expense items that health ship, you have no idea
what the insurance com-
care professionals have,
x ŵƉůĞ ŽŶ-ƐŝƚĞ ƉĂƌŬŝŶŐ Mink Mink ,QF so it’s important to find pany’s profit margin is;
&
you don’t know what’s
ways to save money while
x &ƌĞĞƐƚĂŶĚŝŶŐ ǀĂĐĂŶƚ ďƵŝůĚŝŶŐ still receiving the proper behind that curtain.”
Pur chasing
coverage.
Doctors who do have
͘<͘ DŝŶŬ͕ Z͘W͘ ͘ groups, in which a group claims are sheltered from
x ŽŶĞĚ -ϭ >/ E^ Z > ^d d of doctors buy insurance high rate increases as
ZK< Z together, have numerous part of an RPG; while
x ϱ͕ϱϬϬ ƐĨ нͬ- benefits in addition to Matt Gracey they may not pay the
same rate as doctors
decreasing premiums.
“We’ve found purchas- without claims, they are
ing groups to be one way that doctors can still paying less than they would if rates
gain as much control as possible with their weren’t being buffered by a larger group.
malpractice insurance,” explained Matt Fraser Cobbe, executive director of the
Gracey, medical malpractice insurance Florida Society of Nephrology and the
ϯϬϴϭ ͘ KDD Z / > >s ͘ ηϭϬϱ specialist at Danna-Gracey, the largest Florida Society of Orthopedics, manages
purchase groups for both organizations.
independent medical malpractice insur-
^hEEzs > h/> /E' ance agency in Florida. “Power purchasing “From an association standpoint, pur-
&d͘ > h Z > ͕ &> ϯϯϯϬϴ really does work—just like any other thing chase groups allow us to provide sustain-
W, ϵϱϰ-ϳϳϭ-ϭϳϭϳ &y ϵϱϰ-ϳϳϮ-Ϭϵϲϱ you buy, if you have negotiating power, able membership benefits that encourage
ǁǁǁ͘ŵŝŶŬĂŶĚŵŝŶŬ͘ĐŽŵ you can get it less expensively.” doctors to belong to our organizations,”
he said. “We already bring physicians
According to Gracey, purchasing
group members can save anywhere from together to advocate for issues and for
d,/^ K&& Z/E' ^h : d dK ZZKZ^͕ KD/^^/KE^͕ 5 to 35 percent, depending on how big the profession, and bringing them
WZ/KZ ^ > KZ t/d, Z t > t/d,Khd EKd/ ͘ the group is. together to purchase an insurance prod-
One of the only forms of unification uct they need fits within our mission.”
that doctors are allowed to do by federal “In addition to the premium decreases
mandate, membership in purchasing that members get by purchasing in vol-
groups is still underused. “A federal ume, it also enables doctors to have a
statute allows for the creation of risk pur- more substantial relationship with their
chasing groups (RPGs) in the same insurance carrier,” he added. “It allows
statute that allows for risk retention us to dive deeper into risk management
groups (RRGs), which are basically small issues; see what is creating claims against
insurance companies,” said Gracey, our surgeons and track trends in practice
adding that RRGs are more complex, and documentation.
much more regulated and require an “We can sit down with the carrier and
investment of capital to create. get tips on how to avoid situations that
“The beauty of an RPG is that there’s will result in liability claims against our
no upfront capital needed so there’s no members, which improves doctors’ risk
barrier to entry,” he added. “If a doctor profiles, which means lower premiums,”
wants to move his or her coverage from he added. “We avoid claims and provide
an RPG, there’s no barrier to exit either. better care from a patient perspective. It’s
It’s a very simple mechanism of unity for a win/win situation for everyone.”
doctors to gain purchasing power.” By joining professional associations,
There are other advantages to RPG members can take part in these purchas-
membership as well. ing groups, which can be a very wise
“We work very hard to improve the investment. “Our membership dues are
claims profiles of our members within $275 a year, and this past year, our mem-
the RPG, which is the key to long-term bers saved $8,000 off their premiums,”
stability,” said Gracey. “If you have said Cobbe. “It proves our value to them
claims-ridden and challenged doctors in every year.”
your group, you won’t get good rates and So why doesn’t every doctor join a pur-
the group won’t last long. The key is to chasing group?
be selective about bringing in doctors “While there are good companies out
with fairly good claims histories and there that welcome the opportunity to
working with each member to make sure partner with physicians, many brokers
that they have as few claims as possible.” and insurance companies don’t want
In an RPG, the relationship between doctors to unify because it gives more
the insurance carrier and the doctors power to the purchasers,” said Gracey.
changes as well. Instead of being in a “This is why getting good guidance from
vendor/buyer relationship, physicians RPG facilitators is so important.”
become partners with the insurance
companies to lower the possibility of For more information, contact Matt
claims being filed against them. Gracey at (800) 966-2120 or visit
“There is an element of transparency www.dannagracey.com.
within RPGs; insurance companies share
their level of losses and loss ratio and

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6 July 2021 southfloridahospitalnews.com South Florida Hospital News