Protecting your GP Federation or Primary Care Network
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Two years on from launch there is still a great deal of confusion about the insurance needs of Federations and Primary Care Networks (PCNs). Setting up a PCN brings with it a multitude of financial and HR requirements that need to be worked through. There is a lack of understanding about specific risks for the differing PCN structures, so clarification is needed on their legal structure, their legal status and how insurance should be applied.
There are various model options open to running a PCN; – Flat, Lead Practice, Super Practice, and Federation provider. The most popular structure for a PCN is either a flat network, or a network with a lead practice.
Under a limited company structure, as the name implies, practices have got the protection of being a limited company, rather than endangering personal assets – being incorporated is proving quite popular for this reason. But it does have some disadvantages in that staff need to be employed through the lead company – so there are no NHS Pension Contributions (as it is a separate limited company, running a separate subcontract, and the employer of staff must hold an NHS contract to access NHS Pensions.)1 Therefore, a limited company will have to buy its own insurance.
By law, a limited company structure will need Employers Liability Insurance. Additional insurances that are optional, but are highly recommended, include Public Liability and D & O (Directors and Officers insurance).
Whatever form your group structure takes, it is effectively a legal joint venture and any previous insurance arrangements are unlikely to cover the activities of the business and its contracted services adequately. You could be exposed to potential gaps, especially if you are the clinical director.
With responsibility comes accountability
Professional indemnity is important for any clinical director who is making decisions that relate to the business, be that a strategic or policy decision, or implementing standards of practice.
In the event of a possible claim due to a decision made on behalf of the business, it is the policy maker or board that can be held responsible.
Protect yourself and your network properly with Professional Indemnity, Liability and Entity Cover
Standard GP Medical malpractice (treatment risk) insurance will not extend to cover the support function of a contracts and clinical director roles are usually outside of the scope of state backed indemnity. For example, mismanagement of funds or problems created by processes and protocols. It is worth noting that the practice manager won’t get covered, under a limited company. This means that the practice manger will not be protected from any claims arising from bad administration or policy advice, such as Health & Safety.
You need Professional Indemnity cover to protect yourself as an individual as does your employing entity (the business). This insurance will also cover your legal defence costs and any potentially huge compensation claims.
A tailored approach
No two healthcare providers are the same. They are often complex in the manner in which they operate. The issues faced will vary, which is why Lloyd & Whyte will make sure your cover is bespoke to your circumstances and create a package which suits your healthcare business by adding or removing cover where necessary.
So, what do you need?
Any organisation that is setting up separate entities to deliver services on behalf of their healthcare community or member practices will need:
Management Liability which includes:
Why use us?
We understand the complexities of this sector. We offer a simple solution with comprehensive protection provided under one policy. Our extensive knowledge of the market and ‘A’ rated insurer scheme ensures optimum cover and we can offer flexible limits of indemnity/liability.
Talk to our experts to make sure that you are properly covered.
1https://www.rbp.co.uk/considerations-when-setting-up-your-primary-care-network-pcn