By Chris Agnello, Vice President, Intalere Insurance Services
Obtaining and implementing insurance services for your healthcare organization is often viewed as a necessity of doing business, rather than a more strategic opportunity to reduce costs and align with the financial, operational and strategic needs of the organization and its employees.
Certainly, employee benefits tend to be one of an organization’s largest spends, and can be an ideal target for those with fiscal challenges looking to make a significant impact on the bottom line. Life and disability, medical malpractice, property and general liability, workers’ compensation are also areas of focus, where, if done correctly, providers can identify and close coverage gaps while still reducing overall costs.
How is your current broker relationship? Do you deal with poor service or administration, or limited experience with the healthcare industry? Are your employee benefits up for renewal? When was the last time your property and casualty policies were reviewed? Below are a few things to keep in mind as you strive to take a more strategic view of your insurance coverage options.
Most insurance contracts are unilateral, meaning that the insurance carrier typically commits to guarantee rates for a certain time frame, but the client is not obligated to stay. Generally a 30-60 day notice is required to terminate coverage to move carriers. This means you don’t have to wait to save money.
Also, life and disability benefits are extremely easy to transition and require little involvement for HR and no involvement of the employee. Many times, these improvements can be accomplished with minimal disruption to the organization, its leadership and workflows. Benefits, in many cases, are grandfathered over and do not require re-enrollment. Some programs can be implemented within 45 business days.
An additional important aspect of your insurance coverage is the availability and choice of legal defense counsel. If a healthcare facility is involved in any sort of litigation, it is extremely beneficial if your insurance partner can offer experienced healthcare specialists to assist in defense. This can be critical, because many times facility counsel can lack the general expertise in healthcare-related matters to maximize defense capabilities.
In conclusion, it is less about ‘insurance’ and more about reducing costs while enhancing the security and coverage of your organization and its employees. Are you as well positioned as you should be when it comes to insurance coverage for your healthcare facility?
Intalere Insurance Services partners with Gallagher, an industry healthcare insurance leader, to help solve the challenges of operating a sustainable healthcare organization while meeting the needs of your employees and your community. Read a recent success story exploring how we were able to assist a member in increasing policy limits by $18 million while reducing premiums by 12 percent.