Reducing Risk

How to Protect Your Medical Practice From The Hidden Risks Your Malpractice Insurance Will Not Cover

Your medical malpractice insurance is a vital shield. But experienced physicians know it is only the beginning of protecting your practice, your partners, and your personal assets from the immense risks inherent in modern healthcare.

Our firm provides comprehensive legal representation and risk management services for healthcare clients throughout Arizona. We manage the complex legal and business risks of your practice so that you can concentrate on what you do best—providing exceptional care to your patients.

A Meticulous Audit of Your Practice’s Legal Health

The threat of a lawsuit is not the only risk that can undermine a successful practice. Operational, financial, and contractual risks can be just as damaging. We conduct a thorough audit of your practice to identify and contain these issues before they become critical problems. Consider these seven areas of exposure.

1. Your Corporate Structure

Is your practice operating from a properly formed and maintained limited liability entity? Is that entity in good standing with the state of Arizona? A mistake here could expose your personal assets to business liabilities. We examine your structure, your material agreements, and who has the authority to bind your practice to a contract.

2. Insurance for All Anticipated Risks

Your professional liability policy is essential, but is it sufficient? We analyze your full insurance portfolio. Does the practice entity have protection from vicarious liability? Are your property and general liability coverage levels appropriate? Should you consider umbrella coverage, or key practitioner insurance to secure financing? We help you answer these questions with certainty.

3. Clinical Risk Management and Training

The best way to win a lawsuit is to prevent it from ever being filed. What are the specific clinical risks in your specialty? What policies has your practice established to contain them? We help you develop and implement the internal procedures, staff training, and monitoring that reduce clinical errors and strengthen your legal position.

4. The Dangers of Indemnification Agreements

Have you been asked to indemnify another party, or have you asked for indemnification? These contractual clauses can create massive, uninsured liabilities. We review your existing indemnification obligations and establish a clear policy for future agreements to ensure they do not conflict with your insurance coverage or your best interests.

5. The Perils of Personal Guaranties

A personal guaranty on a facility or equipment lease can bypass your corporate protections entirely. We review your practice’s policy on giving and requiring personal guaranties, ensuring it aligns with the long term financial goals of the owners.

6. Critical Business and Staffing Risks

Is your practice overly dependent on a single insurance plan or referral source? Are your employee incentives aligned with your business objectives? How do you verify the competence and trustworthiness of new hires? A weakness in your business fundamentals is a significant risk, and we can help you fortify it.

7. Your Practice’s Financial Stability

What are the fixed payment obligations of your practice? Can these debts be serviced reliably if patient volume or collections decline? We assess your financial vulnerabilities to help you build a more resilient and durable practice.

Take Control of Your Risk Today

The cost of malpractice insurance continues to rise, and the legal landscape for physicians becomes more complex each year. Proactive risk management is no longer an option; it is a necessity.

To secure the future of your practice and gain peace of mind, contact our firm for a confidential consultation.