M anaged care clearly is a concept that's here to stay. Born out of a desire to lower soaring medical care costs, the concept has gained enormous support. However, it also has run into numerous stumbling blocks as cost reduction has conflicted with quality of care. This enormous growth provides excellent opportunities for liability insurers who understand the business, but could be quite dangerous for those who don't. The liabilities faced by managed care organizations are significant and not completely understood.
People are nearly unanimous in support of the idea of lower costs for medical care.
But they are equally vociferous in demanding that there be no reduction in the quality of care. Unfortunately, the trade-offs are inevitable, and managed care organizations stand in the eye of the storm and square in the line of fire when liability suits are filed. Joe Fitzgerald, underwriting manager with Executive Risk Management Associates in Simsbury, Connecticut, points out that there are three basic areas of concern for managed care organizations. This can emerge when a doctor in the managed care network is sued for alleged malpractice. The doctor's liability can be imputed back to the managed care organization.