Medical professional liability insurance, or known to the public as medical malpractice insurance, is a type of insurance that is offered to health care providers to guarantee them protection.
This insurance protects the professional liability of the health care professional from liabilities linked to medical expenses, wrong procedures that end up with bodily injuries, etc.
Nowadays, no business can find a shortcut when it comes to costs, and no business can skip the part where money must be paid. A manager that will keep the costs at their lowest point is a manager that everyone would appreciate and is worth keeping.
But no matter how well your manager can coordinate the cost-benefit factor, you i.e. your business, are obliged to pay. Let’s take a look at the healthcare department.
Medical malpractice insurance is one of the most expensive costs. Chiefs or administrators of the practice are in a constant battle to manage the costs that they are faced with on a daily basis. It is easy to deal with costs like office supplies, pharmaceuticals, medical supplies, etc. when compared to medical malpractice insurance costs.
Let’s have a moderate economy class. Fixed costs are costs that remain stable during different months. Fixed costs, for example, include regular personnel payment and space rent. But one of the major fixed cost that comes with running a healthcare practice is professional liability insurance or medical malpractice insurance.
When it comes to this cost, the price is pretty high. The key to running a successful practice is to find the best combination of dedicated professionals, who are willing to put you in the first place.
Here are a few tips on how to cut cost on medical malpractice insurance:
1. Be Informed
First of all, you need to know that there are more options available. Since we live in the 21st century and there is a remarkable development in every field of work, you must be aware that the market for malpractice insurance has developed too.
When it comes to price, make sure the price is not your only priority when choosing a malpractice insurance company. Keep in mind that because the supply of malpractice insurance is big; the demand will live its benefits i.e. lower costs.
There are numerous types of malpractice insurance companies that you can choose from: Mutual, Stock, Exchange, and risk retention groups. Because of the competition in the field of insurance companies that we mentioned before, it came to the point where previously highly priced companies with high rates are now on the same level as the companies who were once considered as an alternative.
2. Understand The Insurance Offers
Discounts and credits can lower the costs of insurance policy. While you are considering your options on what insurance company to choose, maybe add the premium discounts and credits that the company offers as a pro or a con to your list.
Most of the insurance services provide some benefit over another insurance service. These benefits may include claim free premium discounts and credits, part-time working hours, etc. To choose the best offering, your must accept all the factors that come with it. Combine rule number one (Be informed) with rule number two and the results should be satisfying.
3. Location Is Everything
Costs linked to malpractice insurance are directly related to the location of the physician’s practice. Anyhow, many don’t understand that location plays a big role in insurance costs.
To be more specific, the state of the practice is of significant meaning when it comes to malpractice insurance costs. There are more examples of physicians that switched location only for the purpose to save money. Make sure you choose the location that can fit your bills.
4. Payment Method Is In Your Hands
Even thought paying when you have the money seems like a wonderful idea, it is not how reality works. Most insurance companies that cover medical malpractice allow you to choose from annual, quarterly or monthly payments.
What you need to take care of, is the fact whether or not there are more charges involved in the monthly or quarterly payment plans. Good budget planning will result in avoiding many work related surprises. Statistics suggest that a significant number of practice managers and administrators prefer to pay for malpractice insurance on an annual basis to prevent additional charges.
5. Review Medical Malpractice Policies
Medical malpractice policies are updated almost every year, and since old habits die hard, many physicians will randomly sign the deal they have with their insurer at the moment.
This little journey of exploration may cost you and your practice a lot of money! You need to see what the market of insurance policies offers and choose the one policy that works best for you.