Are You Covered by Insurance as a Medical Director? Are You Sure?

Many physicians are asked to serve as Medical Directors.  

Seems like easy money.  

What do Medical Directors do?  

Two things, actually. They act as administrators overseeing various operational issues – such as credentialing and privileging. And they serve as supervisors, assuming co-responsibility for mid-level providers.  

Every state addresses physician relationships with physician assistants (PAs) and nurse practitioners (NPs) differently. In some states, NPs can practice autonomously, and they do not need Medical Director supervision. In other states, NPs need Medical Director supervision, and the physician must perform a good faith examination before defined treatment plan can be delegated.   

And Medical Directors need professional liability coverage for any supervision activities. Why? If the PA or NP is sued, the supervising Medical Director may also be sued.  

If you are acting as a supervising Medical Director, you must understand what you are purchasing. For example, one Medical Director endorsement to a professional liability reads: 

The Following provision is added to the WHO IS AN INSURED Section, [for your] Professional Liability Insuring Agreement: 

Your medical director while acting within the course and scope of his or her duties as your medical director, but only for the medical director’s vicarious liability based solely on professional services by you, or any other healthcare professional for whose acts or omissions you are legally responsible. In no event is there any coverage provided under this Policy for medical directors who have other valid and collectable insurance. 

Meaning, this endorsement covers YOUR Medical Director if YOU are providing the services.  

This endorsement does not cover YOU as a Medical Director unless the person who purchased this endorsement performed the medical services and has a core professional liability policy. In other words, this endorsement will not help YOU (as a Medical Director) if it is part of YOUR professional liability policy. It will only help you if this policy was purchased by (or covers) the mid-level provider you are supervising for medical acts THEY performed.  

This is confusing and tricky.  

Let’s use names to see if this is easier to digest. 

Dr. Segal agrees to serve as a Medical Director for PA Jones. There is a Medical Director agreement in place. Both Dr. Segal and PA Jones have their own professional liability policies.  

Dr. Segal will want PA Jones to add a Medical Director Endorsement to PA Jones’ policy. That endorsement will cover Dr. Segal as a Medical Director for PA Jones.  

There may be other endorsements or standalone Medical Director policies. The best way to make sure you’re covered is to work with a broker, explain what you plan to do and what you need coverage for. 

What do you think?