The Private Practice eZine Autumn 2013 Page 65

The Private Practice

Autumn 2013

A MATTER OF PRIVACY

There are different exposures as a
doctor and practice owner you are
essentially wearing two hats.

Consider example three in the

`Practice owner exposures' box:
Breaches of patient privacy by staff.
Say you and a business partner set
up a service company with the aim
of renting out spare rooms to other
doctors. As part of the room rental you
provide shared administration staff
(employed by the service company).
Very few patients attend the rooms,
however all patient files are kept on
site. The receptionist is asked by the
doctor renting your room to send
patient notes to a hospital where
the patient will be admitted. The
receptionist sends the notes to the
incorrect hospital, where the patient
actually works as a dietician. The
patient's medical history then becomes
known at the hospital where she
works. The patient brings a privacy
complaint against the doctor, the
receptionist and your service company.

In this situation:

· Theerrorwascausedbythe

receptionist and neither you or your
business partner had treated the
patient. Your personal policies won't
respond but the practice policy
insuring the service company will*.

· Thereceptionistisnottheemployee

of the doctor renting your room,
she is an employee of the service
company. The practice policy will
cover her*.

· Thedoctorrentingyourroom

would be covered by his or her own
personal policy*, as the allegation
against them was that they had a
duty to ensure the patient's privacy.

A practice policy protects the

doctor-owners' personal policies. In
this example, the claim is recorded and
managed within the practice policy.
Both you and your business partner's
personal policies will be unaffected by
the practice policy claim as depicted
in the box below.

ERRORS OF JUDGEMENT

In our example over, the value of a
practice policy is further highlighted
by changing the facts. Imagine if the
receptionist, unknown to the doctor-
owners, was intoxicated, and his or
her impaired judgement caused
the error.

Unlike many insurers, Avant

Mutual Group's practice policy would
still cover the `innocent insureds' you,
your business partner and the service
company would remain covered*.

Not having the correct insurance in

this example is a sobering thought.

Practice Exposed

Practice Protected

In a group practice without a
practice policy, the exposure
generated by your group practice
as opposed to an individual
practitioner is shared across
each doctor's individual policy, or
simply not covered leaving you
personally exposed.

With a practice policy in place,
your personal claims record
is insulated from the actions
of your partners, employees,
contractors or locums
ensuring you are personally
protected.

IMPORTANT: The Practice Medical Indemnity Policy is issued by Avant Insurance Limited, ABN 82 003 707 471,

AFSL 238 765. This policy is available at www.avant.org.au or by calling 1800 128 268. Practices need to consider
other forms of insurance, including directors' and officers' liability, public and products liability, property and business
interruption insurance, and workers compensation. Contact your insurance broker for more information.

If you would like more information about Avant's Practice Medical Indemnity
Policy, please call your local office on 1800 128 268.