How telehealth impacts healthcare professional liability

The advent of telehealth has many benefits for healthcare professionals, particularly in the area of mental health treatment. But the practice is not without risk.

Providing telehealth services demands a considered evaluation of the provider’s current insurance coverage, and will likely require increased coverage. (Photo: iStock)

The ability to deliver mental health services virtually has the potential to revolutionize mental health care at a time when change is sorely needed. Mental health care providers can hold counseling sessions by video conference, communicate by texting, and use remote monitoring for updates on a patient’s condition.

These tools have a distinct advantage in many situations in which mental health services are provided. For example:

While telehealth services are advantageous for many areas of medicine, their use in mental health services may change the game. The nature of mental health treatment, which depends so heavily on the positive patient-provider relationship and typically requires repeat, regular visits, makes it a natural fit for this technology-driven approach.

New technology, new risks

The advantages of telehealth for the provision of mental health services are many, but the practice is not without risk. Providing services in this way demands a considered evaluation of the provider’s current insurance coverage, and will likely require increased coverage.

The ability to provide services to a patient who is located far away can also present a challenge. Telehealth providers must be licensed in the state where the patient is located in most cases, and each state’s requirements can be different.

In addition, many professional liability insurance policies (also called malpractice or errors & omissions insurance) may not cover services provided outside of the state in which the practice is located or where the provider is not duly licensed. Those who treat patients outside of their home state need to ensure their policy extends coverage to this work. Additionally, billing investigations could arise from billing for mental health services across state lines or in addition to office-based visits, and the costs associated with those investigations might not always be covered by traditional professional liability policies.

Since telehealth providers are delivering services via technology, there also is an increased need for cyber insurance. In addition to ensuring that connections and data storage are secure, a telehealth provider must comply with all HIPAA requirements, just as a traditional provider handling healthcare information would. Any sensitive information needs to be protected, and if there is a breach, there must be a process in place to address the breach promptly, in compliance with regulations.

Privacy concerns increase when a provider is given access to a patient’s home and personal space, even if that access is virtual and freely given. The information gathered from that access — whether intentionally or not — must be protected, just as any other patient information would be. This is also true of monitoring devices such as fitness trackers or GPS devices, if they are used in treatment.

The right coverage is crucial

With the ability to deliver mental health treatment virtually, it is even more important that practitioners have the right insurance coverage in place. A professional liability policy covers bodily injury and financial loss claims arising from the insured’s alleged malpractice, including defense costs if necessary, subject to a stated policy retention or deductible.

Professional liability policies also may extend coverage to billing and regulatory investigations as discussed above. A general liability policy covers claims for bodily injury or property damage arising from an accident, as well as claims for personal and advertising injury related to their operations.

Cyber insurance is designed to protect you financially if you are the victim of a data breach, ransomware attack or hack, and should cover the costs associated with notifying patients of a cyber incident, in addition to liability claims that may arise.

As with any emerging technology, the risks of telehealth will need to be weighed against the rewards. But with the right insurance coverage in place, patients will enjoy improved access to care, while health professionals will be better protected against claims and lawsuits.  A win-win scenario.

The contents of this article are provided for informational purposes only and do not constitute, and should not be relied upon, as legal, business or insurance advice.

Alicia Marsiglia, RPLU, ( ) is product head for allied healthcare professional liability, part of the Professional Risks Practice at Hiscox.

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