Dive Brief:
- To help hire the volume of doctors needed to meet upcoming demand under the ACA, or acquire their practices, some healthcare organizations are offering to pay for "tail coverage" -- malpractice insurance that covers doctors' acts prior to employment.
- Tail coverage is particularly expensive for some higher-risk specialties, such as OB-GYN, which can cost $100,000 or more.
- Hospitals generally keep tail coverage in place for five years once they've brought doctors into the fold.
Dive Insight:
Hospitals were already acquiring practices at a brisk clip, but the ACA has made the matter more urgent, as hospitals may see a flood of newly insured patients. Offering doctors insurance which brings them peace of mind seems like a good idea, assuming the expense isn't too great to bear. It's worth noting, though, that once they're on board, it's just as important to give doctors a seat at the table when important decisions are made. Physicians who give up private practice still want to be acknowledged and appreciated. Hospitals that forget this may be wasting their money on the insurance, as their relationship with doctors just may not work.