Florida Statutes require that physicians in our state provide a level of financial responsibility. These statutes are technical and “in the real world” provide limited protection to patients.

Nevertheless, the Financial Responsibility Statutes which can be found at Florida Statute 458.320 require that as a condition of licensing for the practice of medicine, an applicant shall by one of the following methods demonstrate to the satisfaction of the board and the department financial responsibility to pay claims.

One option for the doctors is to establish and maintain an escrow account consisting of cash or assets in the amount of $100,000 per claim.

The second option is for the doctor to obtain and maintain professional liability coverage in an amount not less than $100,000 per claim with a minimum annual aggregate of not less than $300,000.

The third option is for the doctor to obtain and maintain an unexpired irrevocable letter of credit, established pursuant to Chapter 675 in an amount not less than $100,000 per claim, with a minimum aggregate availability of credit of not less than $300,000.00.

The financial responsibility statutes also require that doctors with hospital staff privileges are required to establish financial responsibility by similar methods as other doctors, however, the coverage must be in the amount of $250,000 per claim and the minimum annual aggregate must be not less than $750,000.

If the doctors have chosen insurance carriers as a way to provide financial responsibility, the carriers are required to promptly notify the department of cancellation or nonrenewal of insurance required by this section. The statutes state that the department shall suspend the license of a physician for their failure to comply with these statutes.

There are exceptions for this coverage such as doctors who practice as officers, employees, or agents of the Federal Government or the state or agencies or its subdivisions.

The requirements of the financial responsibility as set forth above, shall also not apply to certain other physicians who comply with certain criteria. The criteria include, but are not limited to such things as the following:

1. The doctor has held an active license to practice in this state or another for more than 15 years

2. The doctor has had no more than two claims for medical malpractice resulting in an indemnity exceeding $25,000 within the previous five-year period.

3. The doctor has not been convicted of, or pled guilty or nolo contendere to, any criminal violation specified in this chapter or the medical practice act of any other state.

4. The doctor has not been subject within the last 10 years of practice to license revocation or suspension for any period of time.

There are other requirements. However, once the doctor has met these requirements, he or she may choose to go without any liability coverage and/or may not be required to comply with the other financial responsibility provisions which was discussed above. If the doctor chooses to go this route, which is often referred to as “going bare,” he or she is required to post a sign in his or her office which shall state as follows:

“Under Florida law, physicians are generally required to carry medical malpractice insurance or otherwise demonstrate financial responsibility to cover potential claims for medical malpractice.”  YOUR DOCTOR MEETS THESE REQUIREMENTS AND HAS DECIDED NOT TO CARRY MEDICAL MALPRACTICE INSURANCE. This notice is provided pursuant to Florida law.”

Financial responsibility is something a which our politicians need to take a close look. A close look at these statutes will truly show that patients are not adequately protected based on the current financial responsibility laws. Many patients who are the victims of malpractice may not recover due to the current law. These patients may become wards of the state and taxpayers’ obligations.

If you would like further information on this issue or any other issue related to protecting Florida’s families, feel free to call Brett Panter at Panter & Panter. Brett Panter is a partner in the firm of Panter & Panter PA, and is a Board Certified Civil Trial Attorney. The offices of Panter & Panter PA are located in Pinecrest at 6950 N. Kendall Dr. Brett A. Panter can be reached for questions or comments at 305-662-6178; by e-mail at <bpanterandpartner.com>, or at the firm’s Web site at < www.panterandpanter.com >.