tci Medicare Compliance & Reimbursement - 2005 Issue 5

Physicians: Malpractice Insurance Subsidy Passes OIG Muster

Skyrocketing malpractice costs require drastic measuresA hospital facing a severe shortage of neurosurgeons did the only thing it could - it agreed to subsidize malpractice costs for two neurosurgeons who were thinking of retiring.This unorthodox arrangement could have looked like a kickback, but the HHS Office of Inspector General said it wouldn't prosecute the deal in advisory opinion 04-19, published Jan. 6. The two neurosurgeons unexpectedly lost their malpractice coverage, and their new insurance company wanted to charge much higher premiums. Meanwhile, their original insurer offered to give them free "tail" coverage for any claims based on prior...

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