Owning a healthcare practice in today’s changing industry: How to stay on top of changes and mitigate risk
As a healthcare provider or business owner, keeping up with the industry’s rapid changes in regulation, patient care models and technology is as challenging as a patient surge during a shift change.
But, owning a practice or healthcare business makes staying abreast of industry changes crucial to implementing robust risk management strategies. Below is a comprehensive guide on how to navigate today’s new healthcare landscape and mitigate associated risks.
Current healthcare changes affecting small practices
Consolidation of healthcare providers
The trend toward consolidation, where solo practitioners join larger healthcare systems, has been accelerating. This shift is largely driven by reimbursement levels, regulatory demands and the desire for more stable income and work-life balance. “The shift to more corporate practice of medicine with more hospital ownership of healthcare providers is somewhat permanent and has changed the way healthcare is being delivered,” says Ned Rand, president & CEO at ProAssurance.
These changes result in fewer healthcare providers aspiring to start a private practice, preferring the relative security of being part of a larger organization.
For nurse practitioners and physician associates, the dwindling level of physician-led practices leaves more room for allied health professionals to address the gap in private practices.
Consolidation tip: Many patients still want the flexibility and personal connection more common in a private practice setting. NPs and PAs are perfectly positioned to fill that need.
Healthcare provider shortages
The pandemic exacerbated the burnout crisis and provider shortage, and the healthcare sector has yet to recover. In some areas, like mental health, shortages are particularly acute. The need for more private practices run by physician associates and nurse practitioners is great.
The shortage of healthcare providers, particularly in areas like primary care and OB/GYN, has increased responsibilities for allied health professionals like nurses and medical assistants. The care shortage can sometimes create pressure to work outside of practice scope. Providers need to know the boundaries of their license and alert the leadership of healthcare settings where this pressure occurs.
Medmal tip: Be sure to have professional liability insurance, even when your employer offers a plan. Medmal covers all patient care delivery methods as long as they are within the scope of practice according to relevant laws.
Click here to learn about 9 Questions healthcare practitioners should ask about personal liability protection and employer liability protection to see if you need professional liability insurance.
Telemedicine integration
The pandemic accelerated the widespread adoption of telemedicine, providing a crucial means to deliver care remotely. This trend is expected to continue, supported by technological advancements that enable remote monitoring and data collection, as well as insurance coverage that matches in-person patient care.
Besides improving patient access, telehealth lowers the bar to open a practice because there are fewer overhead costs.
For providers with an interstate compact, telehealth widens the pool of prospective clients and patients across state lines via telehealth.
Telehealth tip:
- Only partner with HIPAA-certified vendors.
- Use secure passwords and change them every few months.
- Invest in cybersecurity solutions to safeguard electronic health records and other sensitive data. Consider purchasing cyber insurance in addition to general malpractice insurance.
- Have a plan to respond to data breaches and other security incidents.
- Conduct regular security audits to identify and address any vulnerabilities in your systems.
Increased liability risks
Healthcare providers face rising liability risks, including large jury verdicts in medical malpractice cases. “Large verdicts are happening more broadly across any state and every state, driven by anger and the lack of a personal relationship with healthcare providers,” says Rand.
Rand cites the increasing consolidation in healthcare as one cause of higher jury awards in malpractice lawsuits. Patients often lack a personal relationship with a provider as past generations did. “When that provider is up on the stand, there’s less empathy for that individual and what they may do because there’s no similar relationship for jurors,” he says.
Tips: Maintain detailed and thorough patient records to provide a clear history of care, which can be crucial in defending against claims.
Ensure all staff members undergo regular training on the latest medical practices, legal requirements, and patient communication skills.
Consider additional umbrella insurance policies to cover excess liabilities.
Technology changes
The increase of technology use in healthcare for patient portals, electronic medical records and digital marketing means healthcare business owners must stay on top of constantly changing regulations.
HIPAA laws that are often changing become more difficult as your practice relies heavily on digital tools. Any cloud-based digital tool increases your risk for cyber attacks and security breaches. Yet, most healthcare organizations are more reactive than proactive regarding data security. For small and medium-sized healthcare businesses and practices, one cyber breach could cause significant damage.
Tip:Check Federal and state regulations regularly for any changes. Each state has regulations for every clinical license. Clinicians usually receive notice by email and mail when these changes occur. To ensure your practice stays compliant, regularly review state policies and procedures.
Read our blog on 6 tips to keep your practice HIPAA-compliant
The changing healthcare landscape presents both challenges and opportunities for healthcare practice owners. By embracing technological advancements, fostering collaborative care models, enhancing risk management practices, staying informed on regulatory changes and strengthening patient relationships, providers can proactively mitigate risks, while improving patient care and operational efficiency.
Learn more about CM&F Group’s telemedicine malpractice insurance. CM&F Group offers professional liability insurance to over 150 types of healthcare professionals. All our coverage options are available online, allowing our clients to obtain liability insurance coverage within minutes.
