Is Your Private Medical Practice Legally Protected?

Last Updated: 

May 15, 2024

When it comes to running any business, regardless of what responsibilities you have, there’s going to be a lot of things that you’ll need to juggle. You have to juggle happy customers while at the same time making sure that hackers don’t come after your business, and then there are the employees, finances, and the list, which could go on and on.

But it doesn’t really stop there. You need to protect your business from hackers or bad reviews, and there’s the whole legality of it, too, that needs to be focused on. So, in what ways do you need to protect your business legally? Well, here’s exactly what you need to know! 

Key Takeaways on Protecting Your Medical Practice

  1. Malpractice Insurance: Essential for protecting against financial liabilities from patient claims of negligence, allowing healthcare providers to focus on quality care.
  2. Indemnity Insurance: Provides broader coverage against various liabilities, safeguarding both practice and personal assets.
  3. Employment Policies: Clear employment policies and procedures help mitigate risks of employment disputes in medical practices.
  4. Risk Management Plan: Crucial for addressing clinical and non-clinical risks, including data breaches, natural disasters, and economic downturns.
  5. Regular Contract Updates: Ensuring contracts are up-to-date with current laws prevents misunderstandings and disputes.
  6. Legal Counsel: Seeking legal advice helps navigate complex legal requirements and maintain compliance in all aspects of the practice.
  7. Proactive Planning: Preparing for unforeseen challenges, such as pandemics or economic recessions, is vital for business continuity and resilience.
Discover Real-World Success Stories

Do You Have Malpractice Insurance?

Alright, so this might be a little too obvious because every single private practice can’t even start without it, but it should still be highlighted. Pretty much malpractice insurance is a critical component of legal protection for any medical practice. So, if you’re thinking (or dreaming) of starting a practice, why is this type of insurance so important? 

Well, it provides coverage in case a patient claims that they were harmed due to a negligent act or omission by a healthcare professional. Without malpractice insurance, you could be personally liable for significant financial damages. As you can guess, having to deal with this type of situation is just beyond being a nightmare, truly, and it’s a business-killer, too. So, this insurance helps cover legal fees, settlements, and any judgments against you, allowing you to focus on providing quality care without the constant fear of litigation.

Do You Have Indemnity Insurance?

So this is just as important as malpractice insurance, it’s basically just as important if not more. While sure, both of these are used interchangeably they’re not exactly the same either, they’re very similar, but again, they’re not exactly the same. Malpractice is very hyperfocused on claims of professional negligence, while indemnity insurance may encompass a broader range of coverage against various liabilities.

Having a robust indemnity insurance policy means that you can perform your duties with confidence, knowing that your practice and personal assets are safeguarded against unforeseen legal actions. Overall, you have to understand the sheer importance of healthcare specialist contractual indemnity. Don’t make the mistake that other private practices make and skip this because you already have malpractice insurance.  As a healthcare specialist and business owner, you need to have this, and again, you need both types of insurance, not just one or the other. 

Are You Prepared for Employment Disputes?

Oh yes, even when it comes to medical practices, employment disputes can happen. Employment disputes can arise in any workplace, including medical practices. That’s exactly why you need to go and make sure you have clear employment policies and procedures that can help mitigate these risks. 

This includes having an employee handbook, conducting regular training sessions, and implementing a fair and consistent disciplinary process. Now, these things should be obvious, but you’d be surprised how common it is for practices to not have these, especially when it comes to (medical) cosmetic practices. Usually, it’s just best to seek legal counsel, since they can provide some guidance when it comes to handling any potential employment disputes. 

Do You Have a Risk Management Plan?

All businesses of any industry needs to have something like this, and this includes clinical risks, such as patient safety, and non-clinical risks, like data breaches or natural disasters.Unfortunately, you just never know when the worst will happen, if the worst could happen. But it’s best to be realistic about this because hackers can come at your business anytime and no one knows when a natural disaster of any type could strike. 

Plus, when will another global pandemic happen? What is a recession or even depression happens? It’s scary to think, but you need to always prepare your business for the worse, or it just might crumble. This plan should be reviewed and updated regularly to adapt to new challenges and regulations. So, look into this regularly and create realistic scenarios for what could happen. 

Are Your Contracts and Agreements Up to Date?

As you’ve already guessed, contracts are the backbone of the legal framework of your practice. It’s everything; it’s every contract, employment, outsourcing, vendor agreement, you name it. Now, here’s the thing: a lot of businesses (medical practices and other types of businesses) neglect to review these and update them. Yes, even contracts can become outdated! 

So make sure you partner up with a legal professional so they can make sure that everything complies with current laws and adequately protect your interests. Properly drafted contracts can prevent misunderstandings and disputes, providing clarity and security for all parties involved.

People Also Like to Read...