The Importance of Life and Disability Insurance

June 27, 2024April 19, 2015 by Justin Nabity

It may seem like just another added expense to pay each month, but Life and Disability Insurance is a necessity for physicians. We all have a bit of “It will never happen to me” syndrome, but this is a case where it’s definitely better to be safe than sorry.

As a physician, you probably carry a hefty student loan balance (unless you’ve paid it off, in that case, congratulations). You also probably make more money than your spouse. If an accident happens and you’re disabled, any debt you have won’t just disappear – even though your income may.

Malpractice by the Numbers

November 27, 2024April 19, 2015 by Justin Nabity

Malpractice is one of those nebulous things. It feels as if it could never happen to you. Unfortunately, it’s something that could happen to any doctor at any time. The losses can be enormous, both financially and in terms of reputation.

Let’s take a look at some of the numbers from a recent malpractice report completed by Medscape. It’s comprised of data from nearly 1,400 physicians who were sued for malpractice. The hard, statistical facts provide more insight in a very impactful way, making the implications of the data really hit home.

Employment and Income Changes

February 2, 2022April 19, 2015 by Justin Nabity

When a doctor changes jobs or their income increases, their disability income protection plan may need to change. It is during this time that physicians should review their disability insurance plans to see how it is impacted.

In light of these changes, let’s take a look at the rules that govern how physicians can set up their disability insurance plan. For example, the monthly benefit amount doctors qualify for depends on the stage of their career.

New Employer Insurance Plans

June 27, 2024April 19, 2015 by Justin Nabity

Be prepared for the transition to a new employer by obtaining private disability insurance before the employer paid plan restricts what you can get.

Many employers have a standard benefits package that includes multiple insurance plans. Physicians who join new employers often don’t realize that the employer paid disability insurance plan can restrict what the doctor can obtain. Privately owned disability insurance plans that have been started before joining a new employer are not reduced by what the employer offers, but signing up for a private plan afterward may significantly reduce or prohibit the doctor’s ability to get a private plan altogether.

Taxes, Job Search and Malpractice Insurance Premiums

November 26, 2024April 19, 2015 by Justin Nabity

New Tax Legislation: How does it affect physicians?

The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2012. It includes new tax rates, restrictions on itemized deductions and exemptions, and extensions of certain deductions and credits. This act affects physicians the same way it affects others who make salaries approaching the law’s new limits.

For example, the new tax rate for married-filing-jointly taxpayers who make more than $450,000 in 2013 will rise to 39.5%. For those with taxable income of more than $450,000, capital gains rates will increase to as much as 20%. On the other hand, if you are still in residency or fellowship, and you happen to have some money available to buy a house, you might want to do that soon. The zero-percent capital gains rate is still in place for those who make less than $72,500 (joint) or $36,250 (single).

Physician Contracts, Disability Insurance and Investments

June 27, 2024April 19, 2015 by Justin Nabity

Contracts: Horrible Unexpected Results Of Casual Contracts

It’s tempting to trust your new employer and assume he or she has your best interests at heart. Employers are, after all, showing faith in you when they offer you a contract. However, it’s not uncommon for unexamined contracts to contain unintended pitfalls that make things go horribly wrong, sometimes long after you’ve been hired. That’s what happened to a physician in the Chicago area, as described in this article. How do you overcome contract dangers like this?

Physician Contract Negotiation: False Assumption

June 27, 2024April 19, 2015 by Justin Nabity

Don’t assume you cannot negotiate physician contracts

Most physicians who are finishing their training assume they will have little to no chance at negotiating with a potential employer. Seasoned physicians know from experience this is not true, even for first timers. Don’t get fooled by the employer’s first line of defense…”this is a standard physician contract…the same one we give everyone else…it is compliant with current state laws…and it will not be modified.”

Physician Interviews: Employment Surprises

June 27, 2024April 19, 2015 by Justin Nabity

Don’t let inadequate interviewing cause employment surprises

When asked, most physicians say they feel equipped for the medical aspect of their career, but not prepared to interview and negotiate successfully. Many choose to ignore this and enter their interviews unprepared. Often times this leads to anxiety and a lack of information which can result in unfortunate surprises once employment begins.
Other physicians recognize this problem, but either don’t know where to start or can’t find the time to adequately prepare. In all of these circumstances physicians would benefit from knowing the following 5 rules which are a part of the 15 Basic Principles for a First Interview found in the Physician Employment Interview Kit™.

Physician Contract Review: Full Documentation

July 27, 2021April 19, 2015 by Justin Nabity

Don’t sign a physician contract without full documentation of the offer

Being offered a physician contract is one piece of the puzzle when joining a new practice. Signing without all of the components of an offer can lead to financially painful surprises down the road.
For example, a physician joins a practice and signs a three year agreement with the belief that he would make partner at the completion of three years. What he didn’t find out is that at the three year anniversary of his physician contract, it is at the discretion of the shareholders as to whether or not he is qualified and has earned partnership. If the owners decide that the time is not right, the physician may have to wait until the next annual shareholder meeting before he has another opportunity for partnership.

Physician Contract Review: Financial Records

June 27, 2024April 19, 2015 by Justin Nabity

Don’t sign physician contracts without access to financial records

In order to determine the financial strength of the practice you may join, it is important to review certain financial records beforehand. If you don’t, you could be subject to poor business management causing you to be forced to take pay cuts, an excessive work load, early termination, or a bad partnership deal, just to name a few. The right time to review financial records is before, during and after employment.
As an employee you may find the employer unwilling to share certain information while as a partner, you must have access. Some of the key financial documents to review are the following:

New Tax Legislation: How does it affect physicians?

Contracts: Horrible Unexpected Results Of Casual Contracts

Don’t assume you cannot negotiate physician contracts

Don’t let inadequate interviewing cause employment surprises

Don’t sign a physician contract without full documentation of the offer

Don’t sign physician contracts without access to financial records

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