5 Things Financially Successful Physicians Do Differently

June 27, 2024April 20, 2015 by Justin Nabity

While all physicians face the same financial challenges early on in their careers, each one begins to make decisions about their financial future that will set them on an individual course largely determined by the consequences of their actions – or inaction.

Challenges not met early on with deliberate steps to overcome them can eventually become obstacles to financial success which can grow increasingly insurmountable in a shrinking time horizon.

Perhaps the biggest difference between financially successful physicians and those who struggle is the realization that there is not a minute to waste in setting the right course.

For younger physicians, the best course is the one followed by physicians who have achieved financial success.

Knowing How Hard to Negotiate in Physician Employment Contracts

March 16, 2023April 19, 2015 by Justin Nabity

Negotiating-Employment-Contract-Physician

The Benefits of Professional Contract Review

During their medical training, physicians are taught about medicine. They are not taught how to analyze an employment contract, nor how to evaluate the reasonableness of a given compensation and benefits package. That is why we encourage physicians to consult with a lawyer and compensation advisor on these matters – they have the required expertise to review these issues.

How Is the Affordable Care Act Impacting Physician Employment Contracts?

November 4, 2022April 19, 2015 by Justin Nabity

Many of our clients are asking how the Affordable Care Act will affect physicians and their employment contracts. At this point, we are noticing the following trends:

1. Many private practices are unsure about the effects of Obamacare and are postponing new hires.

Initial surveys of private practices reveal that they have a lot of anxiety about Obamacare. According to the Medical Group Management Association (“MGMA”), two in five physician practices are unsure about whether they will participate on the government-sponsored marketplaces known as exchanges. Also, while physicians said they saw new opportunities to provide care to the uninsured and a medically underserved population, more than 80 percent of doctors worried about what they will be paid from the plans participating on the exchanges.

The Myth that Contracts aren’t Negotiable

June 27, 2024April 19, 2015 by Justin Nabity

One of the biggest myths told to physicians in the early stages of a contract negotiation goes something like this: “The contract is just a routine form. We really don’t negotiate it.”

If we had a dollar for every time our team heard this repeated, we would be retired on a tropical beach far away by now! In truth, it’s a standard line used in every industry (and a pretty lame one at that).

Please don’t take it at face value.

If you are ever told something similar about your contract being non-negotiable, alarm bells should be going off because it’s a ruse and it’s not true. In reality, your employer hopes you’ll just take the contract as-is.

That would be the easiest thing for everyone involved, right?

Wrong.

It’s the path of least resistance.

Why You Should have a Lawyer Review your Employment Contract

March 16, 2023April 19, 2015 by Justin Nabity

The Importance of Contract Review Services

Many physicians believe they can review and negotiate an employment contract just as well as a lawyer. For sure, physicians are extremely intelligent, and can perform some of the tasks that lawyers do, but not all of them. There are at least three reasons that physicians should still engage a contract lawyer, even when they believe they can perform the review and negotiation themselves.

Common Misconceptions about Contract Review

June 27, 2024April 19, 2015 by Justin Nabity

What You Might Not Know About Your Contract

“I think the contract is mostly good – I just want you to focus on the non-compete clause and tail coverage.” We hear this frequently from our physician-clients. When we dig deeper with our clients, we find the following things to be true most of the time.

“Claims-made” vs. “Occurrence-based” Malpractice Insurance Coverage

October 18, 2022April 19, 2015 by Justin Nabity

Our physician-clients approach us with many questions regarding malpractice insurance coverage. The most common ones are “what kind of malpractice insurance is the employer providing me?” and “who will pay for tail coverage if I leave the employer?”

Nowadays, most employers pay for malpractice insurance for their practicing physicians, especially for beginning and non-shareholder physicians.

The details of the policy should be laid out in the physician employment contract and policy documents. So, relatively speaking, this issue is rarely negotiated – most of the time it’s already in the contract!

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.

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).

The Benefits of Professional Contract Review

Many of our clients are asking how the Affordable Care Act will affect physicians and their employment contracts. At this point, we are noticing the following trends:

1. Many private practices are unsure about the effects of Obamacare and are postponing new hires.

The Importance of Contract Review Services

What You Might Not Know About Your Contract

New Tax Legislation: How does it affect physicians?

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