Director of Management Liability Daniel Antrosiglio has decades of experience in the Directors and Officers and Employment Practices Liability space, specializing in healthcare. Here he discusses the trends in healthcare management liability today, and why heightened awareness—and elevated insurance protection—is essential.
How do you characterize the management liability exposures of healthcare organizations?
The risks of this sector have always been unique and complex, and the current climate has raised the stakes even higher. Mergers and acquisitions—seemingly ubiquitous in the healthcare sector today—are among the most common triggers of D&O liability claims. Management liability exposure is also amplified by everything from physician burnout and supply-chain issues to the runaway frequency and severity of medical malpractice claims.
We are seeing 40-year high inflation in the U.S. How is this impacting healthcare management liability exposures?
During the Covid-19 pandemic, we saw a rising demand for medical providers at the same time that hospitals were suffering staffing shortages. With rapid turnover and ongoing declines in the talent pool, many hospitals now increasingly rely on staffing firms. This in turn has added financial pressures, and an economic slowdown only adds to these pressures.
Social inflation is also increasing the costs to litigate and settle cases, including both D&O liability and employment-related claims, and ever-larger judgments encourage plaintiffs to be more aggressive. All of this makes the environment even more challenging for healthcare organizations.
What about the specter of recession?
Rising interest rates have made it tougher for all businesses, including healthcare providers, to operate. This could at some point lead to a broad economic slowdown and layoffs, which typically trigger employment claims.
What is the state of the management liability insurance market for healthcare organizations?
It is very challenging for the healthcare industry. Having a strong risk-management partner is critical in order to be well prepared and adequately covered for the challenges ahead.
At the same time, management liability carriers are backing away from providing broad coverage for healthcare organizations and management. Change is needed—and as a solely healthcare-focused insurer, Physicians Insurance is best positioned to lead this change. We are committed to keeping our Members well protected...stay tuned!
To learn more about management risks, contact Daniel at firstname.lastname@example.org or (908) 200-9288.