When I first came up with the idea of creating a dedicated healthcare group, the response was why?

 

When I continued to pursue that idea, the response was why? It was a valid question to ask because at the time, financial service organizations did not have dedicated groups for lawyers, engineers, nurses or doctors.

 

When I started asking the question why not, the answer tended to be, “It’s just another group of high income professionals—nothing unique or special about them.” I expressed that the healthcare industry was changing and the planning industry needed to change with them in response. The answer was always the same: “They need investments and insurance like everybody else, just go out there and sell it to them.”

 

Although this may be true, it doesn’t touch upon the real issue or the answer to the question, why? Insurance and investments have always centered around products with features and benefits. Healthcare professionals require a dedicated healthcare group because healthcare is unique, different, and has changed for all healthcare providers.

 

• Doctor and nurse burn-out rates are high.

• More doctors work for healthcare care organizations than ever before.

• Tort reform has changed, creating more potential liability for mal practice claims.

• Overhead for independent practitioners is at all-time highs.

• New doctors are opting for employment models that offer salaries and work/life balance.

• Independent doctors are competing against the employed doctors of the hospitals they refer patients to.

 

Do I still need to answer the question, WHY?

 

Financial planning and financial management are lifetime endeavors. In fact, it involves short-term, intermediate-term and long-term decisions. Decisions that impact the protection of you, your family and the people who depend on you. When I needed a surgery, I already had a doctor who could perform the surgery and knew plenty of doctors I could tap into. I wasn’t looking for buddies and friends, I was looking for the surgeon who had the most successful track record.

 

• Knowledge and understanding of medical career models.

• Knowledge and understanding of fiduciary planning.

• Knowledge and understanding of medical and non-medical liability issues.

• Knowledge and understanding of tax laws and strategies based on age and income.

• Knowledge and understanding of how to integrate these into realistic attainable advice.

 

• What financial products do I own now?

• What financial resources should I have now?

• How do each of the above fit into my overall planning strategy?

•Under current state law, where are my financial exposures?

• Under current tax law, how much money am I “leaving on the table?”

• What is my current employment status and what benefits am I entitled to receive?

• If I can be hired, then I can be fired. How do I protect myself?

 

Financial planning and asset management begins with understanding a physician’s career model: independent contractor, employee, or entrepreneur. A planner can provide advice based on the physician’s employment model. This will dictate how advice is provided for benefits, tax-planning, and asset protection planning.

 

 

THAT’S WHY!