HJNO Mar/Apr 2020

HEALTHCARE JOURNAL OF NEW ORLEANS I  MAR / APR 2020 31 entity in the future, should it be unable to pay its losses and financial obligations. In addition to reasons of insolvency, over the years healthcare providers have found themselves in a lurch when companies have decided to pull out of the Louisiana mar- ket. It is for reasons such as these that LAM- MICOwas founded, to provide a long-term stable source of qualitymedical malpractice insurance coverage. What other things should purchasers consider when comparing med-mal products or quotes? Physicians, hospitals, and healthcare pro- viders searching for a medical malpractice insurance carrier should look for a company with a reputation for quality customer ser- vice and aggressive legal defense. It is also important to find a carrier that provides effective risk management education and personalized claim handling by experts in the unique legal and medical malpractice environment in Louisiana. Lastly, do your homework. Talk to your colleagues, and look for a company that is committed to protecting your reputation in the event of a defensible claim, rather than settling a claim just to make it go away. In a long-tail line of business such as medical professional liability insurance, physicians, hospitals, and healthcare pro- viders should choose an insurer with the financial strength to withstand potential changes in the medical malpractice system in Louisiana, as well as unforeseen events. Keep in mind that you generally get what you pay for. With your reputation at stake, medical professional liability insurance is not necessarily the place to allow cost to be the only factor that drives your purchasing decision. You should understand the cover- age you are purchasing and the services that will be provided to you. How do med-mal insurance carriers work with the Louisiana Patient’s Com- pensation Fund? Louisiana is one of only a handful of states with a patient’s compensation fund. Each of these funds is unique, and operates in accordance with the system in its state. In Louisiana, healthcare providers must pay a surcharge (premium) to the PCF in order to be afforded the protection provided by the Medical MalpracticeAct. Inmost instances, when a claimof medical malpractice is filed against a healthcare provider, it is defended, and the defense costs are borne by the insur- ance carrier or the self-insured. Occasion- ally, the PCF may provide further defense of the claim if the insured’s primary policy limits have been exhausted. In the event of a settlement or judgment, the PCF is respon- sible for its layer of damages and medical expenses. Before a lawsuit can be filed in Louisiana, the complaint must be reviewed by amedi- cal reviewpanel.Themedical reviewprocess takes up to two years on average. The PCF performs some of the administration of the panel process. Insurance carriers who write business in Louisiana are required to perform the bill- ing function for the PCF, collect the PCF sur- charge, and remit the surcharge to the PCF. Failure to remit the surcharge on a timely basis can result in the healthcare provider not having PCF coverage, thus not having the protection of the act. Additionally, the insurance carrier may be subject to fines and penalties. “In a long-tail line of business such as medical professional liability insurance, physicians, hospitals, and healthcare providers should choose an insurer with the financial strength to withstand potential changes in the medical malpractice system in Louisiana, as well as unforeseen events.”