Lake Medical Imaging Improves Cash Flow by $64k and Enhances Coverage

BKS engaged with Lake Medical Imaging through a mutual relationship with PRA CEO, Jeff Younger. Lake Medical received a detailed analysis of their entire property & casualty insurance program showing coverage improvement opportunities and a pro-forma of the cost structure achieved by switching to the BKS physician insurance program. Lake Medical ended up making the decision to move all of their property & casualty insurance to realize the cash flow and coverage benefits.

Background and Context

• The practice experienced significant medical malpractice rate increases due to deteriorating loss experience, but maintained very little insight into detailed claim trends over a 10 year period.
• The existing cost structure was not competitive compared to the BKS physician program.
• Cyber liability limits and contract language were insufficient for a larger practice after a review of the cyber risk.

Solutions and Tactics​

  • Deployed a quarterly malpractice claim analytics package including trends by physician, modality, location, diagnosis, allegation and body part.
  • Reduced insurance expense by $64k (36%) by leveraging economies of scale.
  • Placed a comprehensive cyber liability policy which fell within the savings above.

Value and Lessons

  • Practice leadership receives clear insight into claim trends which informs clinical strategies to reduce loss experience, thus, leading to more competitive renewal pricing.
  • Practice is now able to reinvest the year over year savings into their operating budget and growth strategy.
  • Received $1M in balance sheet protection from cyber breaches.

Physician practices rely on BKS to reduce coverage & pricing deficiencies and increase cash flow & balance sheet protection.

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