(Condensed from an article in the May/June 2006 MGMA Connexion)
A midnight fire, caused by new insulation being installed, destroyed a portion of the main facility of Strand Regional Specialty Associates LLC in Myrtle Beach, SC. The subsequent task, spearheaded by the organization's administrator, was to get this 14-provider multi-specialty practice back on its feet.
Losing the surgery center and connected administrative suite was only part of the problem. Aside from the physical infrastructure, there was a significant impact to finances, employee morale and patient confidence.
The entire facility was closed for three days. One of the wings was closed for an additional two weeks. Electrical, HVAC systems, phones and computers were gone in the surgery center and administrative office area.
According to the administrator, insurance is a relative term when the incident involves a contractor, subcontractor, application device manufacturer, insulation manufacturer, fire department and multiple insurance companies all putting the blame on the others.
Some of the lessons learned and shared include:
· Read the fine print of your insurance policies.
· Confirm your business interruption coverage (for all facets of your operation).
· Know how a "qualifying event" is defined.
· Learn the definition of "replacement value".
· Confirm that building contents are covered.
Another area of concern is document recovery/reprocessing. In the case of this clinic, it cost $130,000 just to dry out the sodden documents.
Every practice should have an emergency plan in effect in case of disaster! Such plans identify key elements for your recovery:
· Protocols for communicating with employees, patients, remediation teams, construction crews, insurance agent, company and adjusters, and other vendors.
· Computer and paper back-up policies and procedures.
· A process to run your practice without personnel information, patient charts, bank account information, general ledgers, etc.
· Have temporary employees, vendors, contractors and subcontractors sign business associate and confidentiality agreements to protect patient privacy.
· Consider outsourcing payroll and billing, as well as storing information with an ASP (application service provider).
· Maintain lists of every piece of medical equipment, electrical devices, computer equipment, etc. for replacement purposes.
· Understand that some employee layoffs might be required. (This clinic had to lay off 10 employees and reassign others.)
· Investigate fire and water protective storage for all documents.
No one thinks that a disaster will befall them, but planning for such a catastrophe could save you a little pain if a disaster does hit.
RGI Insurance Services is available to review your disaster recovery plans and insurance coverages at any time. Just give us a call at 1-800-852-8872 or e-mail to info@RGIinsurance.com
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
and schedule an appointment with one of our experts
Posts
