Who Pays for Physician Employee Malpractice Tail Coverage

Written by Reed Tinsley | January 30, 2006

Who Should Pay for Malpractice Tail Coverage: My Viewpoint

Here is my belief: a physician practice should pay the malpractice tail for a departing physician employee and a physician owner should always pay for his or her own malpractice tail.

Remember that the physician employee is "relying" on the medical practice's reasons for needing to recruit another doctor. Sometimes these reasons just don't work out. However this does not excuse the need for due diligence on the part of the physician employee candidate. In other words, the medical practice should bear the risk of the recruitment - if it doesn't work out, it should bear the tail responsibility.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

Have questions? I’m here to help.

Categories
Accounting and Tax Services Litigation Support Managed Care Consulting Managed Care Contract Negotiations Medical Practice and Healthcare Entity Valuation Medical Practice Assessment Medical Practice Brokerage Medical Practice Embezzlement Consulting Medical Practice Management Medical Practice Merger Advice Medical Strategic Planning Newsletter Personal Financial Planning Oversight Physician Compensation Models Physician Compliance Physician Financial Management Services Retirement Uncategorized