Management Liability for Healthcare

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Protecting your leadership

Government regulations are increasingly complex, and compliance has become extremely complicated. The pressures of compliance coupled with shrinking profit margins and the need to control costs make it increasingly difficult for healthcare organizations to find efficient means to improve the quality of care and patient outcomes.

The COVID-19 pandemic has added further financial pressure to healthcare organizations’ balance sheets. The pandemic added an additional layer of concern that healthcare providers needed to address in addition to the ever-present anxiety caused by a changing reimbursement system and the higher cost of delivering quality care. These factors push executives to find cost-efficient ways to provide an increasingly large spectrum of care. The decisions made by a provider’s directors and officers are of critical importance and directly impact the financial viability of the organization. Directors & Officers (D&O) liability insurance enables the organization’s leadership to make incredibly difficult decisions regarding the delivery of care without putting their personal assets at risk.

Why healthcare firms need D&O insurance

Without regard to a provider’s status as a not-for-profit, private, or public entity, all healthcare organizations benefit from having a well-negotiated D&O insurance program. Firms may be sued by employees, patients, regulators, suppliers, and creditors. Without a proper program in place, the organization is left to bear the financial burden of defending itself and, in most cases, its directors and officers.


D&O vs. Professional liability insurance

D&O insurance should not be confused with Professional Liability coverage. Professional Liability (akin to malpractice insurance) addresses performance failures and negligence with respect to services provided, and not to the performance and duties of management. It is recommended that organizations carry both D&O and Professional Liability insurance policies.

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Practice Leadership

James Sheehan, J.D.

National Account Director, Management Liability Practice

Donovan Nowell

National Management Liability Practice Leader

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