Accreditation Council for Graduate Medical Education: Hahnemann University Update on Malpractice Insurance

CHICAGO, Dec. 13 -- The Accreditation Council for Graduate Medical Education issued the following news release:

The ACGME has been made aware of the news that American Academic Health System, the owner of Hahnemann University Hospital, has said it will not provide medical malpractice insurance for claims made after January 10, 2020 for residents and fellows that they employed at Hahnemann between January 10, 2018 and August 6, 2019.

The ACGME has notified American Academic Health System that Hahnemann University Hospital is in violation of the ACGME Institutional Requirements and that it must have malpractice insurance, which includes coverage of any future claims (e.g. tail insurance), for all residents and fellows.

Resources for Prior Hahnemann Residents and Fellows

The American Medical Association (AMA) has agreed to underwrite an attorney to represent the residents and fellows in the Hahnemann bankruptcy and other court proceedings, specifically related to tail insurance coverage. As described in the Claims-Made Insurance Primer (details below), impacted residents and fellows who wish to be included in this representation at no cost should contact Jeremy W. Ryan of Potter Anderson Corroon.

The Claims-Made Insurance Primer for Residents and Fellows Affected by Hahnemann Closure, published by the Philadelphia County and Pennsylvania Medical Societies, provides a summary of the status of the medical liability insurance for Hahnemann residents and fellows and the legal resources that are being made available.

The Pennsylvania Medical Society's website lists a comprehensive set of resources for those impacted by the closure of Hahnemann, including insurance coverage and attorney contact information. Questions can also be submitted to them on that web page. The Philadelphia County Medical Society can also answer questions via email here.

ACGME's Accreditation Requirements

The ACGME's Institutional Requirements state that as the Sponsoring Institution, Hahnemann University Hospital must have malpractice insurance, including coverage for any future claims, for the residents and fellows as part of their employment contract.

Hahnemann has a responsibility as the employer of those residents and fellows from January 2018 through the closure of the graduate medical education programs to protect the residents and fellows from this liability and thereby protect any patients who may have suffered a compensable injury during that period of time. By not continuing to provide this coverage, Hahnemann places the residents and fellows in a position of severe financial risk that may jeopardize their medical licenses.

ACGME Institutional Requirements (https://www.acgme.org/Portals/0/PFAssets/InstitutionalRequirements/000InstitutionalRequirements2018.pdf?ver=2018-02-19-132236-600).

IV.E. Professional Liability Insurance

IV.E.1. The Sponsoring Institution must provide residents/fellows with professional liability coverage, including legal defense and protection against awards from claims reported or filed during participation in each of its ACGME-accredited programs, or after completion of the program(s) if the alleged acts or omissions of a resident/fellow are within the scope of the program(s).

IV.E.2. The Sponsoring Institution must provide official documentation of the details of liability coverage upon request of the individual.