Economics

This post will outline the basic structure of how to plan for long-term debt reduction and elimination and accumulation of wealth. This is a process that has a great deal of power over a long time range, so the sooner you start this, the more powerful the tools will be. It’s never too late to start, but a long time ramp gives a less steep climb. Confronting reality Getting a handle on your debt structure can be a daunting and stressful task. Confronting reality, however brutal that may be, is the first step. As an overall rule, there are three grades of debt, whether business or … [Read more...] about Financial Basics for the Independent Doctor part 4

This post will outline the basic structure of how to manage the income from your practice so you know where your money is going, and how to plan for your long term benefit. Simple disclaimer: all of the recommendations that follow should be vetted by your tax adviser for best applicability to your situation. I will address a few common errors and pitfalls. Financial structure of the practice Most practices benefit from being organized as either a corporation or as a limited liability company. If you choose to organize as a corporation, a sub-chapter S selection makes the most sense. This is … [Read more...] about Financial Basics for the Independent Doctor part 3

This post will outline the basic structure of how to track and manage basic finances in an independent doctor’s office. Proper financial management is high on the scale of professional satisfaction when done well, and also high on the stress scale when not done well. We’re not in the health care filed in order to earn money as a primary objective, but managing it well has to be. Future blog posts will address the details of actually billing and managing practice income; this one will focus on the basic setup necessary. Tools Many times a doctor will be working with an inherited set of … [Read more...] about Financial Basics for the Independent Doctor 2

A health care provider’s office that is not part of a much larger organization or a franchise is becoming a rare entity in today’s economy. There are several factors playing into this, but understanding how to best navigate and take care of the basic challenges is essential. Financial errors can quickly compound and cause major stress, or worse. We’ll look at the macro items first. External pressures The largest external pressure by far is the transformation of the health insurance industry over the past 20 years. Prior to the advent of the PPO (Preferred Provider Organization), doctors of … [Read more...] about Financial Basics for the Independent Doctor