Healthcare providers seeking medical malpractice insurance should make educated decisions about plans that provide adequate coverage and do not cost a fortune. Making cost-efficient choices includes taking advantage of medical malpractice policy premium discounts that a carrier may offer.
Some carriers offer medical malpractice policy premium credits if the provider or organization they work for uses electronic health management to keep track of their patient’s health records (PHR).
Why use electronic records?
Electronic medical records can increase patient safety and help contain costs by decreasing the number of inefficiencies in health care delivery. One study concluded that computerized physician order entries reduced medication errors by over 50%.
Another study indicates that providers who use electronic health management records might strengthen their defense if faced with medical liability claims. Improved medical record documentation that is accurate and easy to access can help an insurance carrier dismiss a medical malpractice case.
EMR allows some medical malpractice premium credits.
Some insurance carriers have seen the benefits of electronic medical records and have begun to offer discounts to providers who use them. For example, Midwest Medical Insurance Company provides medical malpractice discounts for physician groups that have used an electronic system for at least a year. The credit can span from 2% to 5%, depending on the functions used.
Another example is Horizon Blue Cross Blue Shield of New Jersey collaborated with insurance carriers to offer similar discounts. Contact us if you would like to discuss potential credits for your medical malpractice policy.
Many carriers do not offer medical malpractice premium credits.
However, some carriers do not offer discounts because they claim no concrete evidence that electronic records management reduces medical negligence. Another reason a medical malpractice insurance carrier may not offer discounts because to few practices use electronic systems to accurately determine how effective they are at reducing malpractice risk.
Some who oppose discounts also believe that medical malpractice risk could increase if the system generates too many alerts and providers do not act upon them due to the sheer possible volume.
Providers and medical malpractice insurance carriers typically want to avoid facing additional liability exposure. Another element that could open these entities up to litigation is the privacy issue. Patients may worry that an electronic system can be hacked and their information be compromised or stolen. If the possibility of this became a reality, providers and their insurance carriers could face litigation.
Should I choose a carrier that offers electronic health record credits?
Ultimately, it is up to each insurance carrier to offer credits for medical malpractice policy premiums for the electronic management of health records. They have their reasons why they do or do not offer discounts.
It is up to the provider to perform their due diligence to research each policy before purchasing one. Contact us if you would like to discuss potential credits for your medical malpractice policy.
More information about Fifth Avenue Agency
Fifth Avenue Agency specializes in MPLI and medical malpractice insurance, serving 1000s of providers nationwide. Fifth Avenue Agency is part of the Fifth Avenue Healthcare Services family. Sister companies include 5ACVO (credentialing and primary source verification specialists) and Primoris Credentialing Network (credentialing and provider enrollment specialists with 54+ health plan and network provider enrollment options).
Fifth Avenue Agency initially published this article here. For information on Fifth Avenue Agency, please visit FifthAvenueAgency.com or Contact Us.
