APP Bankrupts – Doctors Lose Tail Malpractice Insurance
When major hospital staffing firms file for bankruptcy, their physicians may be left without the medical malpractice tail insurance that had been promised in their contracts.
The most recent example is Tennessee-based hospital staffing firm American Physician Partners (APP). After announcing its closure in July 2023, APP later filed for Chapter 11 bankruptcy in October and plans to liquidate. As a result, APP will no longer honor its contract to provide the firm’s over 2,500 physicians with tail malpractice insurance.
If you have lost tail malpractice coverage as a result of a staffing firm’s bankruptcy, reach out to a MEDPLI medical malpractice insurance insurance broker now for a quote on a new tail insurance policy.
APP Bankruptcy – Why Doctors Need Replacement Tail Malpractice Insurance ASAP
MEDPLI insurance brokers are ready to help you secure strong tail malpractice insurance that covers you retroactively from the first day of employment with your former hospital staffing firm. Here are the key reasons why you need tail coverage:
- Your medical malpractice insurance coverage from your hospital staffing firm ends on your last day of employment or termination of your contract.
- If the bankrupt hospital staffing firm fails to provide tail insurance, you will be exposed to a lawsuit – and potentially heavy personal financial loss – if a former patient files a claim against you for an incident that occurred while you were under contract with the firm.
- Note that your new employer’s medical malpractice insurance policy will not cover you for prior acts that occurred during your former hospital staffing contract. The same is true for a new standalone policy if you go into private practice instead.
Tail insurance is necessary only if your previous policy was a form of claims-made malpractice insurance.
Check out our 2023 Physician’s Guide to Tail Insurance to learn more or call us directly with your questions. Our friendly insurance brokers will be happy to answer any questions you have about your previous, current, or future policies – our main goal is to help you find the best insurance solution for your unique situation.
How MEDPLI Helps Doctors Find the Right Tail Malpractice Insurance
We understand that the need to seek new employment due to a hospital staffing firm’s bankruptcy – and losing critically important tail coverage – can be doubly stressful. Our independent MEDPLI insurance brokers will help to find you the right replacement tail coverage for your specialty and location at a great price.
As your trusted broker, MEDPLI can help you save time and money on tail malpractice coverage by:
Given the increasing volume of medical malpractice lawsuits across the U.S., it is a huge risk not to have tail coverage when moving from a bankrupt hospital staffing firm to a new employer or a new practice. Don’t wait – prepare yourself for any prior-acts medical malpractice claims with a strong tail malpractice insurance policy.
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