Protecting your GP Federation or Primary Care Network

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:

• Professional Indemnity – designed to protect the individual in the first instance, against potential claims arising from errors or omissions whilst overseeing the contracts. Typically claims tend to revolve around things such as contractual issues, poor management or financial errors as opposed to mistakes that are treatment related.

• Employer’s Liability and Public Liability insurance – cover for any claims arising from injury to staff or injury to third parties or damage to property, during the course of your work. To cover any gaps for those working on behalf of the network, across practices or multiple locations.

Management Liability which includes:

• Directors and Officers (D&O) insurance – (particularly covering clinical directors, managers). Where there are Clinical Directors who can be held personally liable based on the decisions they make on behalf of the business.

• Employment Practices Liability –  is a facet of a management liability policy which covers traditional legal disputes that often arise between the business and a third party, as well as the business and an employee. These might include HR matters like contract disputes or tribunals for unfair dismissal. It protects the company against allegations of ageism, sexism, racism, sexual harassment, wrongful termination and other alleged breaches of employment law brought by employees, former employees, or potential employees.

• Company Legal Liability  – (covers legal defence costs in respect of regulatory action such as Health & Safety, CQC investigations or data protection issues).

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.

Call our Specialist team on 01823 761054

¹https://www.rbp.co.uk/considerations-when-setting-up-your-primary-care-network-pcn