Summary
Action:
The OIG recently issued an Advisory Opinion indicating it would not take action against two hospitals for subsidizing the malpractice premiums of the only two neurosurgeons in the community.
Impact:
OIG Advisory Opinions bind only the party(ies) seeking the opinion. This recent opinion, however, should be instructive to other hospitals facing similar community needs.
Effective Date:
January 6, 2005.
Recognizing the ongoing medical malpractice insurance crisis is having a serious impact on the availability of high risk medical specialties in many parts of the country, the Office of Inspector General of the Department of Health and Human Services ("OIG") recently approved an arrangement in which two hospitals subsidized the malpractice premiums for two neurosurgeons. The arrangement was designed to prevent the loss of neurosurgical coverage to the community served by the hospitals, especially emergency care. The arrangement, approved in Advisory Opinion No. 04-19 on
