Page 4 - SFHNMay2020finalUF.qxp_SFHN 0608 Friday 5.0

How the COVID-19 Crisis Is

Affecting Malpractice Insurance

BY VANESSA ORR Can Premiums be
Reduced?
The spread of the According to Gracey,
coronavirus has affected many clients have been ask-
every aspect of health- ing about decreased premi-
care, and that includes ums since the volume of
malpractice insurance. patients has dropped so
While some physicians dramatically. “Well patients
are on the front lines, aren’t coming out of their
others are experiencing homes, and elective surger-
a slowdown in business ies have stopped,” said
- and both have con- Gracey. “Doctors who are
cerns. not on the front lines may
“We are seeing a lot of Matt Gracey not be busy at all; in fact,
activity from clients we’re even seeing physicians
who have questions about what to do suspending their practices until this is
during this time,” said Matt Gracey, over.”
medical malpractice insurance specialist While some companies are giving pre-
at Danna-Gracey, the largest independ- mium adjustments for downtime because
ent medical malpractice insurance the risk is less, and others are allowing
agency in Florida. “What’s interesting is payment deferrals from 30 to 120 days,
that doctors seem to be in two camps - other companies are holding the line.
they are either busier than ever, or not “From the insurance companies’ view-
busy at all. point, actuarily they have a hard time giv-
“Those who are very busy are con- ing too much credit on premiums
cerned about making sure that their mal- because claims-made policies have a
practice insurance covers a number of retroactive coverage component that
services, including telehealth,” he said. most often goes back to the beginning of
“While it does, physicians need to let a physician’s practice, or the physician
their insurers know that they are provid- being hired into a new group,” said
ing telehealth services, and make sure Gracey. “Under the Florida statute of
that they’re following state guidelines.” limitations, the statute of repose extends
According to Gracey, each state has the liability window to the end of four
different telehealth rules, and while years, except for children; then it goes
some states have loosened restrictions until the child’s eighth birthday.
on telemedicine during this time, other “Even if a physician is not practicing
states haven’t. full-time for two or three months, their
“For example, a doctor might treat exposure is still covered for any past
patients in Florida, but then a patient procedures,” he added.
travels out of state, perhaps to a second Gracey noted that as the economy
home, and calls in for a telemedicine shifts, doctors may need more protec-
visit,” explained Gracey. “Physicians tion than ever.
need to be very careful about licensure “Studies show that during a recession,
issues in this situation.” people sue doctors more often, so we
Gracey says that doctors are also counsel them that they may actually
pushing to be exempt from liability for need more coverage and higher limits,”
coronavirus issues, and in fact, the he said.
American Medical Association (AMA) “Not only do those on the front line
and the Florida Medical Association need to be concerned about the liability
(FMA), as well as a number of other of treating COVID patients themselves,
societies and medical organizations, but there may also be indirect claims
have petitioned the state and federal resulting from other patients experienc-
government for immunity for liability ing a delay of diagnosis, or the delay of
from coronavirus patients. essential surgeries that were deemed as
In February, U.S. Health & Human non-essential,” he added.
Services Secretary Alex Azar did extend “There are a lot of things that can go
liability protection to a wide range of wrong when a healthcare system is put
healthcare providers, suppliers, drug under this amount of stress, and I
makers and other entities, making them believe that we’ll see many more law-
immune from any claim related to the suits as a result of the crisis.”
manufacture, distribution, administra-
tion, or use of medical countermeasures, For more information, contact Matt
except for claims involving willful mis- Gracey or Tom Murphy at
conduct. (800) 966-2120 or visit
www.dannagracey.com.

Visit us on the web at

www.southfloridahospitalnews.com
www.southfloridahospitalnews.com

4 May 2020 southfloridahospitalnews.com South Florida Hospital News