Financial Responsibility

458.320 Beneath will be listed information about the financial responsibility of individuals for the state of Florida:

(1) Before an applicant who is seeking the renewal or an active license, they must follow the methods and demonstrate it with satisfaction to the board of financial responsibility and the department to have the issuing of such license or renewal. The applicant must show that they are responsible for paying for any claims that come from providing or not providing medical treatment services to a patient as a condition:

(a) The total specified in paragraph (b) must be covered by the applicant by creating an escrow account that has that amount either in cash or in an asset that is eligible to be deposited for the per claim amount, in accordance with s.625.52. Any attorney’s fees or costs for litigation that the defendant of the allegation obtains, cannot be covered by the amount within the escrow.

(b)As defined under s.624.09, an insurer that is authorized, as stated in s.626.914(2), an insurer of surplus lines, as defined under 627.942, a risk detention group, as provided in s.627.357 through a plan of self-insurance or as mentioned in s.627.351(4) a liability coverage must be maintained by the Joint Underwriting Association that is no less than $300,000 for annual aggregate, and no less than $100,000 per each claim. The defendant’s costs for litigation and fee’s of attorney cannot be covered by the insurance coverage mentioned above for any medical malpractice claim.

(c) Obtaining and preserving a letter of credit that is irrevocable and unexpired in accordance with chapter 675, which holds no less than $300,000 available credit for an aggregate and no less than $100,000 for every claim. Upon reaching a settlement agreement by both parties or reaching the final judgment which shows the liability that the physician will be required to pay for the medical treatment services that were provided or failed to be provided, a payable letter of credit must be assigned to the beneficiary by the physician. The defendant’s costs for litigation and fees of attorney cannot be covered letter of credit mentioned above for any medical malpractice claim. A non-assignable and nontransferable credit letter must be provided. Either a savings association or a bank who has their branch either in the state which follows the United States laws or that relied on the laws currently in existence, are authorized to issue the letter of credit.

(2) If the hospital provides the physician with staff privileges, the physician has to establish a responsibility financially as a condition of the privileges provided for any operation that is performed in a surgical center or ambulatory service that is licensed under chapter 395. One of the following will create their financial responsibility:

(a) By having cash or assets available in the maintained and created an escrow account, with respect to s.625.52, for the total amount that is mentioned in paragraph (b). The amount in the escrow account cannot cover the costs of litigation or fees of the attorney that were endured by the defense of any claim for medical negligence.

(b) As defined under s.624.09, insurer that is approved, as stated in s.626.914(2), a extra lines insurer, as defined under 627.942, a risk detention group, as provided in s.627.357 through a plan of self-insurance or as mentioned in s.627.351(4) the Joint Underwriting Association, which meets the conditions of financial responsibility mentioned in s.766.110, a liability coverage must be maintained by the Joint Underwriting Association that is no less than $750,000 for annual aggregate, and no less than $250,000 per each claim. The defendant’s costs for litigation and fees of attorney cannot be covered by the coverage mentioned above for any medical malpractice claim.

(c) Obtaining and preserving a letter of credit that is irrevocable and unexpired in accordance with chapter 675, which holds no less than $750,000 available credit for an aggregate and no less $250,000 for every claim. Upon reaching a settlement agreement by both parties or reaching the final judgment which shows the liability that the physician will be required to pay for the medical treatment services that were provided or failed to be provided, a payable letter of credit must be assigned to the beneficiary by the physician. Any cost or fees obtained by the defendant cannot be paid for with this letter of credit. The credit letter must be nontransferable and non-assignable. Either a savings association or a bank who has their branch either in the state which follows the United States laws or that relied on the laws currently in existence, are authorized to issue the letter of credit.

Subsection (1) coverage mentioned shall pertain to the following subsection:

(3)(a) When there is a renewal of a license or an assigning of a license, the responsibilities requires must be fulfilled and the criteria for the license must be followed.

(b) For any person who has qualifications that make them exemptions, an advisory opinion can be demanded at any time by any individual of the department.

(4)(a) If a nonrenewal or cancellation of a license takes place, the notice of such action must be given by the department who issued it, whether it is the Joint Underwriting Association, risk retention group, self-insurer, or insurer. Information regarding the suspension of a physician’s license can be given to facilities that are authorized under chapter 395, for any physician that did not abide by the requirements in ss.120.569 and 120.57 in order to keep such license. Any suspension given to a physician for a lack of compliance will remain in effect until they comply. Unless there has been an agreement by both parties that indicate otherwise, the payments that are made while there is a suspension of license must be done while abiding by the requirements. The debtor’s obligation to pay for the judgment’s total amount is not stopped by the above.

(b) If the letter of credit or the account of escrow does not meet the financial responsibilities or adhered to, the total amount of judgment, plus interest acquired, must be paid in full by the licensee for an action performed either in tort or contract. Proceeding the final judgment, which amount is less, the licensee must pay for it within 60 days, unless if in writing, there has been an agreement to something else by both parties. As soon as the processed in subparagraphs (5)(g)3., 4., and 5, have been followed, suspension of the physician’s license will take place if prompt payments are not made. The debtor’s obligation to pay for the judgment’s total amount is not stopped by the above.

(5) For subsections (1), (2), and (3), the below does not apply:

(a) Those who practice medicine completely and officers that are qualified under this chapter or, its agencies, its subdivisions, the Federal Government, and agents of the state. Those said to be agents of the subdivision, state, or agency are those eligible for coverage by a self-insurer that is authorized by s.768.28(16), or any insurance program.

(b) Those who do not practice medicine in that particular state and whose license has become inactive in this chapter. Demonstration that coverage for tail insurance was maintained for occurrences taking place in the year 1987, or after that date, or the day the licensure became active, whichever date is later, and for occurrences that happened before the license become inactive. The above must be fulfilled by anyone who wants their license to be reactivated; or that during the time that the person completes the application for renewal, there were no settlements or judgments that were not met for a claim of malpractice by filing an affidavit.

(c ) Pursuant to s.458.317, those carrying a limited authorization and working under the limited license.

(d) Individuals that are authorized by this chapter and who work at a teaching school or medical school that is accredited. The person can engage in such practice as a necessity to fulfill their duties in the medical school or teaching hospital.

(e )  Those who are not working in the state by practicing medicine but are authorized under this chapter. Prior to being able to resume practice in the state, they must show the fulfillment of the requirements for financial responsibility and notify the department of initiating or resuming their practice of medicine.

(f) Individuals that are authorized in this chapter and have a license that follows the criteria of an active license below:

1. More than 15 years of combined practice time has been held by the licensee either in the current state or another state.
2. A licensee who is retired from working in medicine or holds a part-time practice of patients no exceeding 1,000 every year.
3. Claims for medical negligence not exceeding a total of $25,000 and not being more than two claims over a span of five years for the licensee.
4. As described in this chapter, no guilty plea or nolo contendere for medical negligence or any criminal convictions has been committed by the licensee.
5. With the past 10 years, the licensee has had no revocation or suspension of their license; no presence of a $500 or more fine, or a probation period of more than three years a period of three years or more for not adhering to this chapter or for a medical error. Grounds for a lawsuit against a physician’s license can derive from the waving of a license, stipulation, settlement, or order of consent, by the acceptance of the physician in response or anticipation of the administrative charges that were made against the licensed physician by the regulatory agency.
6. The licensee has submitted the information that is necessary within the affidavit and in compliance with the department.
7. The licensee must submit a certification that demonstrates that they are abiding by the provisions required, every two years. Upon request of the department, the licensee has to show how they are complying with this paragraph.

A sign must be posted by the licensee in the form of a notice who meets the requirements. The sign must be displayed in a way for everyone to be able to see in the reception area. The details of the physician’s insurance must be given to those receiving any services of that physician or anyone who is visiting their officer; it must be clearly stated as a sign. Under Florida law, the demonstration of financial responsibility or the carrying of insurance for medical malpractice must be mentioned on the sign. There are exemptions from the law of financial responsibility for certain part-time physicians that meet these state requirements. The physician that will be caring for you meets the requirements of the state but has chosen to not have medical malpractice insurance.  Pursuant to Florida law, this notice has been provided.

(g) Under this chapter, any person who meets the following criteria and holding an active license:

1. For any judgment that was made for a contract or tort action, the licensee will have to pay no less than $100,000 if they are authorized in this chapter and do not have staff privileges at the hospital, if the settlement rules or judgment arbitration were not abided by; after the final judgment has been decided on, they will be mandated to pay within two months of such decision, $250,000, unless in writing, both parties have agreed upon something else. Any counterclaim, cross-claim, or indemnity or contribution claim coming from the medical malpractice shall be included in the final judgment. Once the department has received notification that the judgment has not been paid or satisfied, the licensee will receive by certified mail information regarding potential disciplinary action if the following is not performed within 30 days of receiving the mail:

(a)Showing that the amount needed to be paid for the judgment has been satisfied, or

(b) A copy of the notice of appeal that is intended to be filed is furnished to the department and either:

1. The amount required by law of a supersedeas bond that is properly posted, provided in copy; or
2. Provided by the court of appropriate jurisdiction, the appeal pending disposition of the financial judgment of the order.
3. An emergency order to suspend the license of a licensee can be ordered by the Department of Health if the following has not been completed: appeal copy, copy of the supersedeas amount of bond, or the pending disposition copy by the adequate court of jurisdiction, of within 30 days of such notice the licensee did not provide a copy, there was no satisfaction of a medical allegation that was made against them.
4. To figure out whether there is enough evidence to order a disciplinary action, the arbitrating panel will discuss the problem through a meeting they create 30 days after the notice has been mailed.
5. As it is deemed fit by the panel board, the licensee can have disciplinary action taken against them if the subparagraph 1 factual requirements have been met. Restrictions must be contained within the disciplinary action that includes payments that must be made by the licensee through a schedule to the judgment creditor that is reasonable in accordance with the license probation that has been set. The penalty installed can also include a period of suspension for up to five years. Any restrictions on the physician’s license shall be removed once an agreement has been made to satisfy the judgment.
6. The form that was given to the department by the licensee fulfills all requirements.

A sign must be posted as a form of a notice d by a licensee who meets the requirements. The sign must be displayed in a way for everyone to be able to see in the reception area. The sign must be placed in a way that can be clearly seen by every patient that walks in, or for any patient receiving care or treatment, the notice must be provided in the form of writing. Under Florida Law, it is required that the notice or sign states how the physician is typically mandated to maintain financial responsibility for potential claims filed against them for medical error.  Your physician has opted out to carry such insurance although they these state requirements. It is subjected to certain conditions. Noninsured physicians who fail to satisfy the adverse judgments coming from medical malpractice claims will be penalized by Florida law. Pursuant to Florida law, this notice has been provided.

(6) Under s. 458.331, disciplinary action elements can surface from any fraudulent, untrue, or deceptive representation performed by the license with respect to any establishment from this section. Exemption from any mandated financial responsibility shall be permanently disqualified.

(7) The department must be notified in writing by the licensee of any change that occurs in respect to the qualifications that the licensee has the exemption or of any licensee who is dependent upon the financial liability exemption. In addition, they must demonstrate how the requirements of this section have been abided by.

(8) If within 30 days, a physician has not made the payments for any settlement agreement, arbitration award, or final judgment of which they have entered in for damages committed by the physician in a medical mistake, the department shall issue a suspension of their license until there is proof that they are paying the specified amount or they have entered into an agreement to pay the amount. If the

Financial responsibility accountability does not apply to any physician that does not meet the necessities from paragraphs (1)(b) and (2)(b).

(9) The board will implement certain rules and adopt them for this section’s elements.