Who Pays for Physician Employee Malpractice Tail Coverage

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.

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About Reed Tinsley, CPA

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Reed Tinsley, CPA