Financial Management

The question of whether a medical malpractice lawsuit will be commenced is not a matter within the discretion of the physician, but rather within the discretion of the patient and the patient’s lawyer. Therefore, although making oneself “lawsuit proof” is simply not possible, making oneself “judgment proof,” or nearly so, is often very possible, provided only that there has been sufficient advance planning.

My last article published in the March 2012 issue of Oncology Practice Man agement described the benefits of Key Person Replacement insurance and how it can benefit a medical practice. This article focuses on 2 additional types of disability insurance that are often used to protect a medical practice—Disability Business Overhead Expense insurance and Disability Buy-Out insurance.

Although most physicians are aware that one of the greatest risks they face is becoming disabled and unable to perform the “material and substantial” duties of their medical specialty, most are unaware that myriad types of disability insurance policies exist to protect their medical practices. These types of policies can assure that ongoing business expenses can be met, that creditors can be paid, and that the medical practice or value of their business interest(s) will be preserved in the event that he or she is unable to return to the practice of medicine. Read More ›