OB Gyn’s High Cost of Malpractice Insurance Premium – Ideas to reduce the cost.

November 22, 2011

OBGyn’s still pay amongst the highest premiums of any specialty.

The conventional wisdom for years has been that their frequency of medical malpractice insurance claims reporting was significantly higher than other specialties, and the amount that is paid by Ob/Gyn’s per claim (even if the case does not go to court), these claims are still higher than other specialties.

The Doctors’ Company is aware that physicians are subjected to many patients, especially OB who present in the emergency departments with no prenatal, they may have no insurance, no option other than to go through  the pregnancy sort of ‘online’, googling and interpreting their own answers to their questions and incidents.

The Doctors’ Company is aware that physicians reimbursements are being reduced by Medicare and California Medicaid; and, at the same time, the federal government and private payers are beginning to look for some of their reimbursements back. Fraud investigations, which are becoming routine enough to remove the suggestion of impropriety, they are routine and routinely expensive for the physicians.

The Doctors’ Company includes mediguard to pay for each physician’s exposure to these billing inquiries, which helps provide representation, shadow audits, and paying some fees in the event of either administrative or billing related fees, fines and penalties.

Additionally, Ob/Gyns can ‘buy up’ the amount of this insurance so that a discounted amount of billing insurance sits right on top of the $ 25,000 which is included with each policyholder’s insurance.  The ‘buy up’ provides peace of mind insurance so that when the RAC letter is received, (Which is the almost inevitable letter from the Recovery Audit Contractors), the physician makes one phone call, and knows that there is plenty of money available to defend and indemnify against the common billing audit and inquiry.

ObGyn’s can ensure that all of their practice is insured, including all ancillaries, facilities and medical entities, they may also  reduce their medical malpractice insurance --  by talking to our agency about their practice.  We might be able to present a part time premium to cover those Ob/Gyn’s who are not able to commit full time to the practice,  we may have to look into the RVU’s in order to place more than one on one limit;  Perhaps, we can help the Ob/Gyn group develop and introduce a laborist program, where the premiums are lowered to match the lower exposure of fewer RVU’s.

Many Hospitals are working with The Doctors’ Insurance Agency to help implement premiums which negate the need to pay tail when recruiting or even when losing a physician.  This exorbitant cost can prevent OB Groups from recruiting the right and available candidate, losing them to the closed panel medical group with no requirement to pay tail either coming in or leaving.

Our RVU, or per encounter policies designed for Ob Gyn groups and other specialties are another example of The Doctors’ Company innovating to help group’s save money and match the risk accordingly.

Additionally, physicians and medical groups may sign up to study how to reduce their chances of being named in a perinatal delivery claim.

The perinatal bundle discount program is a series of online courses  that our OB’s can participate in to lower their premium. Our patient safety representatives have to approve of the course implementation, completion and delivery of the discounts.  Our fantastic Patient Safety team is ready and waiting for our Ob/Gyn’s to work with them, to learn, improve their practice knowledge and skill.  The discount is 10 % of the annual premium, this combined with the claims free discount for those who qualify can have a big impact on the annual rate paid by our Ob/Gyns.

And, if you are looking into a Laborist program, or an Ob/Gyn Hospitalist program, it may be best to rate it by the services provided, RVU’s generated, the on call  hours, or something insightful into the practice profile which merits consideration.

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