Healthcare Business for Sale? – (Buy & Sell Businesses Tips!)
If your in the market to buy or sell a Healthcare Business, make sure you review the following
business tips to help you maximize your bottom line,
while ensuring protection of your business.
This article will cover the business risks associated to Specialty Professions.
Healthcare Business – Underwriting a Specialty Market
The first step to understanding a Specialty Profession, is to examine it’s business classification
and possible business exposures. This is commonly examined
through the lens of an insurance underwriter,
who will perform this business review. So, lets begin with the
insurance backing of Specialty business coverage.
Specialty insurance lines, have a number of risk factors,
and this is what specialty lines underwriters are concerned with.
They are concerned with the specialty risks associated in that industry or niche group.
The insurance underwriter will examine the risk
associated with the specialty industry or field.
Specialty Coverage Illustration
As an example, there are some lines of insurance that
can present an increase in hazards.
The chance of things going wrong, can be seen when
you break down the more hazardous categories.
Let’s look at a surgeon for example.
Medical Evidence in the Profession
Surgeons for example, may present a different set of risks then the
occupation of a general physician for example.
Both types, can be costly in the event of a future claim or potential loss.
However, the surgeon’s expertise is required in examples with a
greater chance of risk, just by the nature of the work conducted.
Occupational Limitations of Plan
This is true because, physicians for example, who place limitations
on their practice to everyday maladies and nothing more,
will pay less on their insurance plan.
Basically, this means, that with the proper steps in obtaining
insurance and business protection, end goals for protection are followed.
These can include the following:
- insurance package,
- reduction of risk
- and increase in reputation status
Medical Malpractice Coverage
The basics of the medical malpractice coverage applies to the insurance coverage
that arises out to the rendering or failure to render professional service.
These injuries can come in the form of bodily injuries.
Some of these insurance options, are covered under the
bodily injury section of the malpractice policy.
Some of them, are as followed:
- Medical services that have physical consequences for the patient.
- Nursing treatments
Medical Protection of the Profession
Let’s use a medical example to breakdown what the overall cost,
before and after of a possible claim can entail.
This insight will provide a better perception on how to properly
cover and insure your investment, which in this case, is your medical profession.
In the medical industry, the professions of many
varied types of professionals take shape.
They serve to exist under one general liability insurance policy,
that have different conditions depending on specialty and risk exposure.
There are many degrees within the medical profession,
especially within the doctor or surgeon group.
For example, let’s use the case of a surgeon.
A surgeon unlike other general physicians, like an internist as an example,
have an entirely different set of risks isolated to that specific medical niche.
The amount of education and continued education,
is just one area of differentiation.
The cost for claims and losses can be extremely costly,
due to high risk and nature of the profession.
This is because a surgeon is considered to have an expertise.
This medical expertise is required in greater areas of
medical risks and practice, due to its high risk.
The professional exposure to risk is not limited to the
magnitude or scope of career movement.
Healthcare Professional Concentration
Concentration is the specialization of a professional in one or a few categories of his or her business, for example.
For illustration purposes, an insurance agent or broker,
may agree to concentrate on specific insurance niche.
This specific insurance niche may also have a need for higher education,
or professional designations.
Many insurance professionals,
seek designations in both commercial lines and personal lines.
Designations for Specialty Groups
Just like in the medical field, there are certain degrees of expertise
one can gain in the insurance industry.
You can climb the ranks in the commercial insurance arena,
within the underwriting department.
Gaining an accredited designation in the field of underwriting
and commercial insurance, would suit this position well.
It can open new doorways for potential career growth and
opportunities in other areas of the insurance field.
Teaching the Industry
There are times when insurance professionals will seek
these designations, for other reasons.
One reason can sharpen and shorten the learning gap.
There are many insurance applications that have a learning curve,
so it is always best to have an elevated standing if you can.
To have a designation with a surge of information and expertise behind you,
is invaluable to not just the professional, you,
but also the organization that you work for.
Self Employed Business
If an agent or broker is self-employed, meaning,
they own their own insurance agency or managing general agency,
as an example, can utilize this training in other ways.
Education training from designations can then be
passed on to other members within the company you own.
You can use these practices and techniques, for a certain insurance niche,
like the trucking business, to master your selling tools.
These new training tools can then be developed into a program,
where it can be taught to multiple team members, if applicable.
This is helpful, if you personally do not want to teach these programs,
but rather have oversight on the operation and progress report.
Education and training are the fundamentals to building
a strong and successful enterprise.
In this example, the concentration of one isolated
areas within an industry was discussed.
If you are an insurance agency owner,
you will need to carry an E & O policy as discussed.
However, the underwriter that will oversee your policy application,
will analyze for specific risks.
These specific risks are examined in relationship to
the industry niche or professional expertise.
In the final analysis, the insurance company providing professional liability coverage,
will have a reputation of “good old main street”
and not the wall street approach to general business.
In most cases, they do not favor the small or
part time operations of a business or agency.
These type of insurance risks, are not even considered
for insurance coverage, based on the risk factors involved.
These extreme risk cases will be determined by
the underwriter overseeing the application process.
A determination of acceptance or rejection will be made
based on the probability of loss and risk.
An insurance formula and equation are, drafted by each insurance
carrier for this risk management analysis.
If you do face insurance rejection, many times insurance agents or brokers,
will just seek out another underwriter.
This is because, there are some insurance underwriters
who are easier to work with, while others, not so much.
This comparison is grounded in some cases,
because this type of insurance evaluation is subjective.
Its selection is determined by the individual who is generating an audit for coverage intake.