Reducing Risk

We understand that an important component of running a successful practice is minimizing and containing the many different risks inherent in providing healthcare services. Experienced physicians know that their medical malpractice insurance coverage is only the beginning of dealing with the risks of their business. We provide comprehensive legal representation and risk management services to clients throughout Arizona in the healthcare industry so that they can focus on providing exceptional medical care to their patients.

Practice Risk Auditing & Containment Issues Include:

Proper use of Limited Liability Entity:

Is the practice being conducted from a properly structured limited liability entity? Is it in good standing under applicable law? Have material agreements (including personal guaranties or indemnifications) been undertaken outside of this entity? Who has authority to enter into contracts or otherwise bind the practice entity?

Insurance for anticipated risks:

Do the licensed professionals in the practice have appropriate levels of professional liability coverage in place? Does the practice entity need protection against vicarious liability? Are appropriate levels of property and general liability insurance in place? Should the practice or individual owners consider “umbrella” insurance coverage? Would “key practitioner” insurance be appropriate in connection with long term financing risks or co-owner “buy-sell” obligations?

Internal procedures and training for clinical risk management:

What are the manageable clinical risks involved in the practice? What policies and procedures has the practice established to monitor and contain those risks? How are these policies and procedures administered? What periodic training and certification is required to maintain staff competency? How does the practice monitor and influence professional practice patterns?


What policy has the practice established regarding giving or requiring indemnification? What indemnification obligations currently bind the practice entity or individual practitioners? Are there coverage exceptions or limitations in relevant insurance policies that apply to obligations incurred under indemnification agreements?

Personal guaranties:

What policy has the practice established regarding giving or requiring personal guaranties of facility lease, equipment lease, and other financing obligations? Is that policy in alignment with the long-term goals of the practice owners?

Business risks:

Are there payer plans or referral sources which provide a dominant percentage of the practice’s workflow? Are the incentives of wage and salary employees aligned with the business needs and objectives of the practice? How does the practice determine the competence and trustworthiness of its staff hires? Of its professional hires?

Financial risks:

What fixed payment obligations have the practice and its principals undertaken? Can these obligations be reliably met if collections decline?

The risk of medical malpractice lawsuits is great and malpractice insurance costs are continually increasing. Managing risk is more important than ever.