Can you imagine this happening to you?  

It could.

On November 30, The Little River Healthcare system notified it's employees at two hospitals and several medical clinics, that very thing.  They would be shutting down services about a week later, because of financial insolvency and Chapter 7 bankruptcy.

So why is this important in regards to risk management?  Especially physician focused services?  It simple, but may not be obvious....

First, physicians may or may not be employed by the system.  If they are employees, then their paychecks may stop very quickly.  If they are independent contractors and do their own billing, then they may be fortunate enough to be able to continue cash flow while their accounts receivables come in.  But that doesn't last forever.

But there is another significant issue that may not be so obvious.  Medical liability.  Who carries the insurance for the physicians?  If it's the hospital, then what...