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By Dr. David Edward Marcinko MBA MEd
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In today’s healthcare landscape, small medical practices face a dual threat: the emotional toll of provider burnout and the growing risk of cyberattacks. While these challenges may seem unrelated, both can have devastating financial and operational consequences. Fortunately, the right insurance coverage can serve as a critical safety net, helping practices stay resilient in the face of adversity.
1. Prioritize Cyber Liability Insurance
Cyberattacks on healthcare providers are on the rise, with small practices often being prime targets due to limited IT resources. A single ransomware attack or data breach can lead to HIPAA violations, patient trust erosion, and costly legal battles. Cyber liability insurance is no longer optional—it’s essential. This coverage typically includes data breach response, legal fees, notification costs, and even ransom payments. When selecting a policy, ensure it covers both first-party (your practice’s losses) and third-party (claims from affected patients or partners) liabilities.
2. Consider Employment Practices Liability Insurance (EPLI)
Burnout can lead to high staff turnover, workplace tension, and even wrongful termination claims. EPLI protects your practice from lawsuits related to employment issues such as discrimination, harassment, and retaliation. As burnout increases the likelihood of HR-related disputes, having EPLI in place can prevent a bad situation from becoming financially catastrophic.
3. Review Malpractice and Professional Liability Policies
While malpractice insurance is a given, it’s crucial to review your policy regularly. Burnout can increase the risk of medical errors, and some policies may have exclusions or limitations that leave your practice vulnerable. Ensure your coverage limits are adequate and that your policy includes tail coverage if you’re planning to retire or close your practice.
4. Invest in Business Interruption Insurance
Cyberattacks and burnout-related staffing shortages can disrupt operations. Business interruption insurance helps cover lost income and operating expenses during downtime. This can be a lifeline if your electronic health records system is compromised or if you need to temporarily close due to staff burnout or illness.
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5. Bundle Policies for Better Rates and Coverage
Many insurers offer bundled packages tailored to healthcare providers. These may include general liability, property, malpractice, and cyber coverage under one umbrella. Bundling not only simplifies management but can also lead to cost savings and fewer coverage gaps.
6. Work with a Healthcare-Savvy Insurance Broker
Navigating the insurance landscape can be complex. Partnering with a broker who specializes in healthcare ensures your policy is tailored to your unique risks. They can help you identify coverage gaps, negotiate better terms, and stay compliant with evolving regulations.
Conclusion
Small practices are the backbone of community healthcare, but they face mounting pressures from both internal and external threats. By proactively investing in comprehensive insurance coverage—especially cyber liability and employment practices liability—practices can protect their financial health and focus on what matters most: delivering quality patient care. In an era where burnout and cybercrime are increasingly common, insurance isn’t just a safety net—it’s a strategic asset.
COMMENTS APPRECIATED
SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com
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