MMA Blog

Medical malpractice: How to control cost in a hard market

The hard market is here for medical malpractice insurance. Nuclear judgements against medical groups are happening with more frequency, and underwriters are responding to the rise in losses and their severity.

 

The reality

Recently, medical malpractice insurance costs have spiraled out of control for some medical groups. Some are experiencing 100 – 300% rate hikes, reduced limits or carriers pulling coverage altogether. For these groups, the market can feel particularly hostile. Even more frustrating, to compensate for adverse claims some carriers are also increasing premiums on groups that have a clean, profitable and quality record.

What can help ease cost woes in this unfavorable environment? Practices must be prepared and control the controllables.

 

The controllables

The foundation for controlling your medical malpractice insurance costs begins with strategic planning, active communication with your insurance agent/broker and the insurance carrier, and proactive implementation of risk management best practices. It’s never too early to be thinking about and planning for the renewal period ahead.

With a solid foundation in place, here are six measures that may help control costs and improve your practice management in the long run. If you’ve already implemented these recommendations, it’s important to communicate your efforts with your insurance broker and carrier.

  1. Ramp up the culture of safety: Claims are inevitable, but they can be curtailed with a renewed culture of safety that brings your whole team on board. Your patients will notice your commitment to safety as well.
  2. Document: Most practices are already doing most things right. Now is the time to start documenting it all including:
    1. Patient communications
    2. Safety reporting and accountability that encourages and doesn't penalize employees
    3. Proactive spotting of potential safety issues
    4. Tracking and addressing safety issues to learn and prevent
  3. Optimize risk management: Utilize the carrier’s risk management resources, welcome in-person site visits and be open to learning and implementing recommended safety protocols.
  4. Be prepared to share: Now is not the time to be humble. Share with your insurance broker and carrier your implemented safety and documented strategies. And discuss your practice’s approach to retaining staff to mitigate staffing challenges and shortages.
  5. Understand the competition: Learning how similar medical groups in your area are performing may help your practice know where to focus on training and process improvements.
  6. Build the client-broker relationship: An insurance broker can help evaluate how your practice is performing compared to peers and navigate the market and carrier landscape. Your broker is the practice’s advocate with the carrier. Welcome meetings with your broker to ask questions and report progress. The more they fully understand your practice, the better they can tell your safety story and help curb extreme premium hikes.

Even in a hard market, there are opportunities to ease the burden of rate hikes. By planning and building a foundation of best practices, you can get back in the driver seat, control costs and ultimately build a better practice.

 

 

Andy Tucknott and Travis Davis offer their professional consultation services to practice managers and owners throughout Oregon.

Serving the Northwest, MMA Insurance’s Healthcare Practice offers its expertise to medical practice managers and owners. Brokers guide clients in choosing the carrier that will work best for the practice’s goals and provide the best value, and our partnership goes far beyond that. We consult with clients on the implementation of risk management strategies and advocate on behalf of clients with carriers to help them understand the practice and its performance. MMA’s claims advocacy services support clients experiencing a loss and assist in obtaining fair resolution. Prior to renewal and as a practice changes, we ensure that the best solutions are in place and adjust strategies as needed.

Keep Up To Date

Subscribe to our blog for all the latest news, updates, and events from MMA and our partners

Subscribe

Tell us what you need. We’ll take it from there.

Get a Quote


    YesNo











        First, tell us about you:






        EmailPhone


        Next, tell us about your business:





        Now tell us about the coverage or coverages you need:


        Commercial InsuranceEmployee BenefitsHealth InsuranceSuretyOther



        NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

        You are ready to submit the form:

          First, tell us about you:






          EmailPhone





          Next, tell us about the coverage or coverages you need:


          AutoHomeIndividual HealthUmbrellaRecreationalWatercraftRenter’s InsuranceLife InsuranceWedding Insurance



          NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

          Now you are ready to submit the form:

            First, tell us about you:






            EmailPhone





            Next, tell us about the coverage or coverages you need:


            AutoHomeIndividual HealthUmbrellaRecreationalWatercraftRenter’s InsuranceLife InsuranceWedding Insurance



            NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

            Now you are ready to submit the form:

              First, tell us about you:






              EmailPhone


              Next, tell us about your business:





              Now tell us about the coverage or coverages you need:


              Commercial InsuranceEmployee BenefitsHealth InsuranceSuretyOther



              NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

              You are ready to submit the form:

                First, tell us about you:






                EmailPhone






                Next, tell us about the coverage or coverages you need:


                AutoHomeIndividual HealthUmbrellaRecreationalWatercraftRenter’s InsuranceLife InsuranceWedding Insurance


                Commercial InsuranceEmployee BenefitsEmployee Health InsuranceSurety



                NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                Now you are ready to submit the form:




                    First, tell us about you:






                    EmailPhone





                    Step 1 of 2Next

                    Next, tell us about the coverage or coverages you need:


                    AutoHomeIndividual HealthUmbrellaRecreational

                     

                    WatercraftRenter’s InsuranceLife InsuranceWedding Insurance



                    NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                    Now you are ready to submit the form:

                      First, tell us about you:






                      EmailPhone


                      Step 1 of 3Next

                      Next, tell us about your business:





                      Step 2 of 3Next

                      Now tell us about the coverage or coverages you need:


                      Commercial InsuranceEmployee BenefitsHealth InsuranceSuretyOther



                      NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                      You are ready to submit the form:

                        First, tell us about you:






                        EmailPhone





                        Step 1 of 2Next



                        NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                        Now you are ready to submit the form:

                          Thank you for your feedback and support

                          Please complete the following form to let us know your thoughts:







                            First, tell us about you:






                            EmailPhone







                            NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                            Now you are ready to submit the form:

                              First, tell us about you:






                              EmailPhone





                              Next, tell us about your claim:






                              NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                              Now you are ready to submit the form:

                                First, tell us about you and your business:







                                EmailPhone


                                Next, tell us about the surety bond you need:







                                NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                                Now you are ready to submit the form:

                                  First, tell us about you:






                                  EmailPhone


                                  Next, tell us about your business:





                                  Now tell us about the coverage or coverages you need:


                                  Commercial InsuranceEmployee BenefitsHealth InsuranceSuretyOther



                                  NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                                  You are ready to submit the form:

                                    First, tell us about you:






                                    EmailPhone





                                    Next, tell us about the coverage or coverages you need:


                                    AutoHomeIndividual HealthUmbrellaRecreationalWatercraftRenter’s InsuranceLife InsuranceWedding Insurance



                                    NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                                    Now you are ready to submit the form:

                                      First, tell us about you:






                                      EmailPhone






                                      Do you have insurance with us already?



                                      Tell us what you need:




                                      NOTE: Before becoming effective, all changes, bind orders, or claim notifications must be confirmed by a MMA Insurance representative advising that your request has been processed.

                                      Now you are ready to submit the form:

                                      cross linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram