Knowledge Library

Nearly half of U.S. physicians—44%—report feeling burned out, with 59% citing too many bureaucratic tasks as the chief contributor.¹ This is a serious concern, because physician burnout can lead to patients suffering adverse events² or leave physicians unable to express empathy and compassion with their patients.³

Running a medical practice involves making business decisions that can increase the risk of adverse patient outcomes, professional liability, and regulatory violations. Yet, the skills and training that support conscientious, excellent medical care do not always facilitate skilled business decision-making.^1,2

Physician advertising is controlled by state and federal laws and regulations. Violating these regulations can lead to medical board discipline and fines, can complicate the defense of liability claims, and may not be covered by medical liability insurance policies. State laws may also allow patients to sue the physician for damages if they were injured by the false or deceptive advertising.¹

To “indemnify” or to “hold harmless” means to insure another party’s risk. Indemnity clauses appear in a wide variety of business contracts, including those between physicians, their groups, and the hospitals in which they treat patients. When a physician signs a contract to join a medical group, and the contract has indemnification language, the physician may be agreeing to take responsibility for the group’s malpractice liability if both are named in a lawsuit. Consequently, physicians should be wary of signing any contract with an indemnity/hold harmless clause.

A medical directorship may seem like a reasonable way to bring in extra income without investing a lot of time and effort. However, depending on the arrangements, a medical director’s duties can be extensive and the liability issues not always obvious. Therefore, it is important to understand the legal, regulatory, and professional liability coverage issues prior to accepting a medical director position.