Knowledge Library

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.

In the following case, the group’s medical director over-utilized medical assistant (MA) externs for cost-saving purposes. Because he did not understand how his plan was putting patients at risk, he was resistant to negative input from his colleague. The physician conflict exacerbated the inherent risks of the externship program.

Physicians sometimes call NORCAL Group Risk Management department for advice after a patient has posted a negative review online. Some callers want confirmation that fighting back in court or online is appropriate, but these seemingly satisfying solutions can backfire.