By Patricia A. Costante
Waiting out this Great Recession is not an option for physicians who want to maintain a financially viable practice. As economists predict that the hoped-for turnaround will not begin until the fall of 2010, there is an urgent need to proactively deal with the ongoing fallout right now.
The Physician as a Businessperson
Physicians have the right to make a living, and it isn’t mercenary to expect patients to pay for medical services, either through health insurance coverage or out-of-pocket payments. This expectation is the same financial model …

By Peter Rohr
As a physician with a private practice, you need to be prepared to protect both your professional and personal wealth. Because the bulk of your wealth may be held in one asset there are unique risks, such as liability and liquidity, which require thoughtful planning and careful management. Appropriate insurance coverage can help offset liability risks, and a diversified portfolio including significant liquid assets will help protect you against the possible risks facing both your professional practice and your personal wealth.
 
Addressing Practice Risks
Medical practices have unique risk considerations …

By Joseph P. Nicola, Jr.
By now, most individuals are aware of the economic downturn that has gripped the nation and the world since early-2008. 
Late in 2008, the relentless wave of economic bad news placed an exclamation point on the toll experienced by the financial markets, the housing market, and the economy in general.  Like a freight train out of control, the news triggered near-panic selling activity accelerated the economic decline in unprecedented terms.  Perception and fear became reality, forcing Congress to act.  Their response was slow but, in some respects, …

By Lauren A. Irwin-Szostak

Every day, there’s another headline about the fallout from the declining economy. Record home foreclosures. Bank failures. Rising consumer debt. Now, more and more, we are seeing how these issues are negatively impacting the healthcare industry.
Doctors, hospitals and managed care providers are too often portrayed as the cause of rising healthcare costs. But the facts show that the industry is suffering from the economy’s woes — not profiting from them. Unpaid patient receivables are growing at an alarming rate. The reason: the economic downturn is making it …

By Michael Nissenbaum, CPA.

Once seen as impervious to the global financial crisis, physicians have now begun to feel the brunt of the economic downturn.  Many primary care physicians and specialists report seeing fewer patients today, as compared to one year ago. 
 
Parents defer optional pediatric visits, while other patients postpone or cancel procedures typically used to exhaust remaining deductibles at year’s end.  For example, gastroenterologists who previously had end-of-year waiting lists for colonoscopies report having immediate availability at the close of 2008.  Healthcare consumers are choosing not to move ahead with …

If you’re looking for a smart way to reduce investment volatility while still retaining profit potential, then consider the advantages of asset allocation.

Perhaps the most simple advice in a period of market decline revolves around asset disposition planning.

Start with a money mission statement. From there, draft a clear set of priorities and measurable goals. Next, you need to stress test your present wealth plan.

Doctors are often way too busy to focus on their finances or communicate effectively with their advisers. And when doctors and financial advisers do talk, they often aren’t on the same page. Fortunately, there is a cure for this dilemma.

As the U.S. Tax Court continues to see its fair share of cases involving the legitimacy of this popular estate planning tool for the wealthy, one thing is becoming clear – obeying the rules is the key to maximizing its benefits.