Professional expense insurance for multipractitioner clinics
Many physicians today appreciate working alongside or nearby colleagues. This collaborative approach to medicine is making the occurrence of multipractitioner clinics more common. In these clinics there is typically an agreement that all physicians will share in the expenses of the operation, often including a receptionist/MOA, booking system, office insurance, rent/mortgage payments, a group benefits plan for staff (e.g., HBTF plan), office supplies, and so on. These costs can be shared in a variety of ways; common approaches are as a percentage of a physician’s billings, a flat monthly amount, or a combination of the two. These arrangements have a variety of benefits; however it is important to ask yourself what happens if one person in the clinic is in a car accident or gets sick and cannot work for a period of time, or ever?
Some clinics include in their contract a requirement to carry a minimum amount of professional expense/office insurance, which will cover your professional and office expenses in the event that you become disabled due to illness or injury and cannot work. It can also ensure that you are able to maintain your own professional financial obligations while off work. If such insurance is a contract term in your case, you want to be sure you are aware of the amount of coverage required and that you have the appropriate plan in place. If you work in a multipractitioner clinic and you and your partners do not have professional expense/office insurance in place, you should consider it, keeping in mind that one person’s absence affects everyone.
—Channelle Sawyer, BA
Insurance Advisor