Important Details about Disciplinary Actions

State disciplinary coverage is a feature of your malpractice coverage you may not realize you have. However, your Professional Solutions covers you for up to $25,000 per policy period in legal expenses.

The limits are considered supplemental, which means they are separate and in addition to your policy limits.

In plain language, we will retain defense counsel to navigate the rough waters of a medical board investigation. The policy does not require the action to be part of a malpractice claim or lead to a malpractice claim—just notice of an investigation. However, the policy doesn’t pay for sanctions, penalties, fines, damages, settlements or assessments. It also does not apply to any criminal actions or legal expenses arising out of actual or threatened sexual abuse or related grounds. Always be sure to read your policy for clarification or additional information.

State medical boards, as well as professional associations, must report certain disciplinary actions based on professional competence or conduct to the National Practitioner Data Bank (NPDB). These may include license revocation, suspension, restrictions, censures, reprimands and probation. A report to the NPDB may not be the only adverse outcome. There is the potential for loss of third-party payer contracts, exclusion from participating in Medicare/Medicaid, or other Federal or State healthcare programs.

The Federation of State Medical Boards put together a tool to help medical students and residents understand the role of the medical board when it comes to the complaint and disciplinary process. It’s good information for all physicians, regardless of how long they have been in practice.

Remember to protect your license at all costs. Exchanging emails and documents with the board is not advisable when a state disciplinary action is brought to your attention. If you receive notice of a board investigation, contact the Professional Solutions’ claims department immediately We are here to protect your reputation.