1. UCSF Professional Liability Program Neal H. Cohen, MD Ginger Fleming, JD Academic Planning and Budget Meeting January 5, 2006

2. Professional Liability Program u UCSF Professional Liability Program u Risk Management Office u Risk Management Committee

3. UC Professional Liability Program Professional Liability Insurance u Self-Insurance Program u Coverage l Hospital and Medical Professional Liability l Current Self-Insured Retention (SIR) of $7.5 M Per Claim with No Aggregate u Reinsurance for Excessive Claims l Different Layers l Purchased from Different Companies u Premiums Calculated (Allocated) Annually l Market Climate l Claims History l Risk Exposure

4. UC Professional Liability Program Professional Liability Insurance u Coverage for Defense and Indemnification l Approved Activities l Within the Course and Scope of Employment/Training Program u Exclusions l “Moonlighting” l Assault, Battery, Other Criminal Behavior l Activities Outside of Course and Scope of Employment u Licensing Board Investigations (Provision of Limited Coverage Under Review By UCOP) u Business & Finance Bulletin BUS-9 l http://www.ucop.edu/ucophome/policies/bfb/bus9.html

5. Elements of Professional Liability Claim u Fiduciary Duty u Breach of Duty l Act or Omission to Act Fell Below Applicable Standard of Care as Established by Expert Testimony u Provider’s Actions Caused Injury u Damages According to Proof

6. u Established by Expert Testimony u State and Federal Laws and Regulations u Professional Journals u Professional Association Standards and Guidelines u Facility Bylaws, Policies and Procedures Determining Standard of Care

7. Professional Liability Coverage u Duty to l Inform and Participate in Review of Adverse Clinical Outcomes l Participate in Defense of a Claim or Litigated Matter l Comply with UC/Medical Center Policies, Medical Staff Bylaws, Rules and Regulations

8. UC Professional Liability Program Claims Management u Third Party Claims Administrator (Octagon Risk Services) l Investigates All Professional Liability Claims l Provides Recommendations re: Compensation u Claims Resulting in Litigation are Assigned to Defense Counsel that Specializes in Medical Malpractice l Panel of Defense Counsel Firms

9. Litigation Process u Mediation u Settlement u Trial and Verdict

10. Litigation Strategy u Factors to Consider l Liability l Extent of Injury/Damages l Strength of Expert Support l Deposition Testimony l Demeanor of Plaintiff and Defendant l Sympathetic Nature of Case l Business Considerations l Key Witness Ability to Withstand Trial

11. UC Professional Liability Program Risk Management Office u Responds to Concerns about Clinical Management u Reviews Adverse Clinical Outcomes u Ensures Compliance with Policies l Medical Center l Medical Staff Bylaws, Rules and Regulations l University of California u Assists in the Defense of a Claim or Litigated Matter u Provides Interface with UCOP RM Office

12. Risk Management Committee u Medical Staff Committee u Selected Case Review l Reviews and Makes Recommendations Regarding Case Management to Octagon and Legal Defense l Assists in Defining Need for “Expert” Review l Identifies “Lessons to be Learned” u Recommends Risk Reduction Strategies and Improvements in Care Management Through QIEC and Appropriate Medical Staff Committees u Reviews and Approves Root Cause Analyses and Defines Follow-Up Requirements

13. Professional Liability Program u Reporting of Adverse Outcomes l National Practitioner Data Bank (NPDB) l California Medical Board l Department Chair Notified of Claim Resolution u Allocation Process

14. Reporting of Adverse Outcomes u NPDB l Requires Reporting of Settlement or Verdict of Any Amount When Made On Behalf Provider l Reported if Named as a Defendant, Even if Later Dismissed and Settlement or Verdict Against Regents l Provider Entitled To Review Explanatory Statement Prior To NPDB Making Public to Authorized Inquiries

15. California Medical Board Reporting Requirements u Requires Reporting of all Judgments and Arbitration Awards of Any Amount u Mandates Reporting of Settlements l Allocation Required among Responsible Providers l Not Dependent on Being Named as a Defendant u Variable Reporting Requirements l $30,000 for Physicians l $3,000 for Other Providers

16. UCSF Medical Center Allocation Process u Initiated After UCOP and Plaintiff Agree to Settle or Following Adverse Verdict at Trial u Case Referred to “Allocation Committee” u All Providers Notified in Writing of Allocation Committee Deliberations l Meeting Date, Time l Invitation to Attend or Provide Statement l If Trainee, May Request Attendance by Program Director or Other Faculty u No Legal Representation Permitted u Allocation is Not For Disciplinary Purposes

17. UCSF Medical Center Allocation Process u Committee Reviews Relevant Information l Medical Record l Case Summary, Including Allegations, Expert Reviews, Defense Counsel Assessment l Oral or Written Statement from Providers

18. Allocation Committee Special Considerations u Committee Allocates Responsibility l Degree of Responsibility of Each Provider l Financial Apportionment of Responsibility u Exceptions l Systems Errors l Equipment Malfunctions l Circumstances Where There is a Settlement For Reasons Other Than Standard of Care

19. UCSF Medical Center Allocation Process u Committee Decision Reported to l UCSF Medical Center CEO l Chair, Risk Management Committee l Involved Providers l UCOP Medical Director, Risk Manager & OGC u UCOP Concurs or Requests Re-Review u UCOP Completes Required Documents and Reports to Licensing Board(s)

20. Professional Liability Program Special Considerations u Settlement Process is Not Democratic l Input Obtained from Affected Providers l Expert Witnesses Used to Support Clinical Judgments and Management Decisions l Provide Campus Input, Recommendations to UCOP l Obtain Consensus, If Possible l Ultimate Decision Made by UCOP Risk Management Office and OGC

21. Professional Liability Program Special Considerations u Rarely is Individual Provider a Named Defendant l Cases Filed in Name of Regents u However, Implications More Significant Because of Allocation and Reporting Requirements l Allocation is Independent of Settlement Process l Must Allocate to All Responsible Parties l Must Allocate in Proportion to Degree of “Responsibility”

22. Professional Liability Program Special Considerations u Rarely Allocate to Trainees u Allocation to Trainee Only Under Following Circumstances l Actions inconsistent with what one would reasonably expect of a comparable trainee u Care inappropriate without knowledge of attending physician u Actions in direct opposition to instructions from attending

23. Professional Liability Program Impact on Clinical Management u Participation in Care in Any Way Creates Risk l Examining Patient l Responding to RN, RT, etc. l Writing Any Order l Emergency Intervention l “Helping Out” u Extent of Involvement May or May Not Dictate Outcome u Personal Documentation is Not Necessary to be “Named” in Case

24. Questions or Concerns u Risk Management Department is a Valuable Resource l Available 24/7 l Pager 443-2284 l Phone 353-1842

25. UCSF Professional Liability Program Neal H. Cohen, MD Ginger Fleming, JD Academic Planning and Budget Meeting January 5, 2006