Tail Coverage

Started by drlee
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drlee

Senior Member
20+ Year Member
I am an attending anesthesiologist and have recently left a group practice in a private hospital which I worked for 8 months after residency. I have moved on to another state for a new job (much nicer in every aspect I might add). Unfortunately, my tail coverage is about $17K for having left my original group. This may be a dumb question but is purchasing tail coverage absolutely required? I know the statue of limitations is approximately 7 years for the patients I have treated but I am 99.9% sure of not being sued in the future. I don't want to ante up this much $$$ if I really don't have to. 😕 Any inputs would be much appreciated.
 
Many hospitals and groups will require you to prove you bought tail coverage to get credentialed at your next job.

Unfortunately you need to pay the full tail cost within 30 day of canceling your policy, since the insurance company would gladly dump the liability on you. You might be able to get a lower price by shopping around, you could talk to your insurer and they may change the cost if you can convince them your tail is overpriced, (i.e. more than 1.5 to 2 times your last year's annual malpractice cost) or you might be able to get your new employer to buy you some nose coverage.

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What if I started my new job already? I've been at my new gig for 2 months now. Do I still need to buy tail??
 
Doze is right. While you may be a new graduate now and may have little money now but hopefully that will change, in the near future. In the case of pediatric cases the statue of limitations clock does not stop ticking until they turn 18, plus the seven years you mentioned for adults. So you could still be on the hook for a Pediatric case 25 years from now.

The other issue is the new bankruptcy laws which no longer allow the discharge of debt if you make more than the state median income. This means that even thought you may not have much money, if you lose a lawsuit you will not be able to simply declare bankruptcy and keep your protected assets and divide up your unprotected assets with your creditors and instantly start over. Now you will pay up to half of your income to your creditors for seven years if you make more than the state median income.

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Huh? Statute of limitations for a medical malpractice tort is 7 years? Are you sure? I thought it varied by state.

Medical malpractice actions are actions for injury to the person or wrongful death, which must be brought within two years. 42 Pa. Cons. Stat. § 5524(2) (Westlaw 2007). Pennsylvania courts have adopted a discovery rule for injuries to the person. The statute does not begin to run until the injured party discovers or reasonably should discover that he has been injured by another's conduct. Fine v. Checcio, 870 A.2d 850 (Pa. 2005). The discovery rule does not apply in death cases, however. Pastierik v. Duquesne Light Co., 526 A.2d 323 (Pa. 1987). Neither insanity nor imprisonment extends the limitations period, but the statute does not begin to run against a minor until the age of eighteen. 42 Pa. Cons. Stat. § 5533 (Westlaw 2007).

For medical malpractice cases arising on or after March 20, 2002, the discovery rule is limited by a seven-year statute of repose that runs from the date of the act (two years for death cases). This does not apply to foreign objects unintentionally left in the body, nor does it require a minor to commence an action prior to age twenty. Pa. Stat. Ann. tit. 40, § 1303.513
(Westlaw 2007).
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http://www.mcandl.com/pennsylvania.html

This means that the action must be brought within two years of the occurrence of the event and/or when damage was discovered. The seven year statute is the amount of time that you are allowed to build your case, after the case has been filed. So, yes, it can drag on for 7 years, but the person actually has to file suit within 2 years of realizing that you "damaged" them. In anesthesiology, this should be pretty obvious right away... at least in Pennsylvania.

This is also not legal advice. And I'm a doctor, not a lawyer.

-copro
 
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drlee said:
I am an attending anesthesiologist and have recently left a group practice in a private hospital which I worked for 8 months after residency. I have moved on to another state for a new job (much nicer in every aspect I might add). Unfortunately, my tail coverage is about $17K for having left my original group. This may be a dumb question but is purchasing tail coverage absolutely required? I know the statue of limitations is approximately 7 years for the patients I have treated but I am 99.9% sure of not being sued in the future. I don't want to ante up this much $$$ if I really don't have to. 😕 Any inputs would be much appreciated.
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Is that 17K total or 17k per year x 7 years?
 
drlee said:
I know the statue of limitations is approximately 7 years for the patients I have treated but I am 99.9% sure of not being sued in the future. .
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What is wrong with you? You are not 100% sure. Unless you are, buy the tail. You are a complete and utter dolt for even thinking about not buying the liability coverage.
 
Unless you treated just 1 patient in those 8 months AND they were your family member, I can not foresee how you could be 99.9% sure that you will not be named in a lawsuit. Even a simple blown IV can cost you 6 figures just to have a lawyer.
 
World of advice for new grads.

me personally (unless I was 1099 and can write off my own expenses like malpractice pretax).

I wouldn't join a w2 group practice (partnership) unless it's written group pays your tail if you are terminated without clause or don't make partner (this keep them in line)

I certainly would join as W2 employee non partnership unless tail is covered.....period.

The cost of the tail is roughly 2x the current claims policy.

If group balks at that. I would look elsewhere.
 
aneftp said:
World of advice for new grads.

me personally (unless I was 1099 and can write off my own expenses like malpractice pretax).

I wouldn't join a w2 group practice (partnership) unless it's written group pays your tail if you are terminated without clause or don't make partner (this keep them in line)

I certainly would join as W2 employee non partnership unless tail is covered.....period.

The cost of the tail is roughly 2x the current claims policy.

If group balks at that. I would look elsewhere.
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meh, I wouldn't quite take it that far.
 
Arch Guillotti said:
meh, I wouldn't quite take it that far.
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I would depending on the math.

Why work for "independent" Group A full time for $300-350k w2 that's what they pay in most major cities for if ur tail isn't covered? Those independent group generally use claims made policy simply cause it's cheaper.

Might as well work for one of the big three (Mednax (American anesthesiology) , amsurg (Sheridan) or Team Health who are self insured (no tail needed). For. The same $300-350k.

That's $10-40k in tail value depending how long u work for them.
 
Why not just get your own policy that you can take with you if you leave, assuming you stay in the same state? Policies for new grads are dirt cheap since you have no case history ($100/mo when I started). Don't let yourself be handcuffed to a st!tty practice.
 
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