The Advisor
An Online Newsletter for Medical Professionals
December, 2011
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With it being the end of 2011, we've included a few articles to help with your year end planning as well as prepare you for 2012. Have a safe and Happy New Year!
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 MD Preferred Services is an online resource center for physicians and healthcare executives. According to the Bureau of Labor Statistics, there are approximately 700,000 physicians in the United States who work in excess of 60 hours per week. To help medical professionals leverage their time and resources, MD Preferred has identified and screened uniquely qualified, financially sound, "doctor friendly" community based professionals in a wide range of disciplines including: real estate/relocation, financial planning, mortgage services, banking, legal services, insurance, and accounting who are committed to serving healthcare professionals and offering a superior service experience. Contact Us!
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Be Sure to Join Our Linkedin Group!
Networking for Healthcare Professionals
Just a heads up to all our readers...we started a group on Linkedin!
Networking for Healthcare Professionals is all about our members and the healthcare industry coming together. Share ideas, opinions and industry news. Establish connections with other MDP members and share your knowledge with the healthcare field.
The goal of this group is to establish business to physician relations as well as physician to physician networking. We also hope that this will become a resource for physicians and healthcare professionals looking for tools to help them grow in their career or career search and meet their everyday needs.
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15% Discount to all Physicians
GFDIC (Genesis Financial Disability Income Center) has over 25 years experience working with Physicians and Advisors all over the country. We understand how important it is to have the right income protection product for Physicians. With regard to the current economy we want to help you save money but not give up the protection most Physicians desire. Therefore GFDIC went to work to help all Physicians save money without sacrificing coverage. We have established a special 15% discount on income protection insurance with a "TRUE" Own Occupation definition of disability for all Physician members of MD Preferred Physician Services. Advisors can offer this discount to their Physician members as well. For more information contact GFDIC at (877) 642-2777.
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ERISA - A TRAP FOR THE UNWARY
By Mark D. Miller, Esq. - The BeinhakerMIller Law Firm
ERISA, the Employee Retirement Income Security Act, is an oxymoron, at least with respect to employer-funded health insurance plans. By looking at the title of the Act, one would think that it was enacted to protect employees. In practice, however, with respect to health insurance benefits, it protects only insurance companies and employers.
In theory, the insured employees are supposed to select a doctor of their choice whereby they pay their co-pay plus a deductible (if any). The employee and the doctor both expect that the balance, or at least a specified portion of the balance (typically 80%), will be paid by the health insurance company. The insurance company has pre-contracted individual doctors or "participating providers" (providers) in their network who have agreed to accept a predetermined rate for specific services provided. In the case of such "in-network" providers, the system usually works just as intended.
The situation where ERISA hurts the unsuspecting employee and the doctor is when the employee chooses a "non-participating" or "out-of-network" provider for services. In practice, the employee typically does not have, and has not been given, a fully copy of his or her health insurance plan. The law only requires that the employer deliver a "summary of benefits." The out-of-network doctor also has no access to the plan document.
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HARNESSING STOCK MARKET VOLATILITY
By Steve Selengut
If you were to Google "Stock Market Volatility", you would find a wide range of observations, conversations, reports, analyses, recipes, critiques, predictions, alarms, and causal confusion. Books have been written; indices and measuring tools have been created; rationales and conclusions have been proffered. Yet, the volatility remains.
Statisticians, economists, regulators, politicians, and Wall Street gurus have addressed the volatility issue in one manner or another. In fact, each day's gyrations are explained, reported upon, recorded for later expert analysis, and head scratched about.
The only question I continue to have about all this comical hubbub is why don't y'all just relax and enjoy it. Jon Methuen nailed it in his August 15, 2011 parody of the financial world's ridiculous obsession with "volatility". "A Reasonable Guide To Stock Market Volatility" is a must view --- but only for mature adults with a semi-sick sense of humor.
Decades ago, a nameless college Statistics professor brought me out of a semi-comatose state with an observation about statisticians, politicians, and economists. "In the real world", he said, "there are liars, damn liars, and any member of the groups just mentioned". An economist or a politician, armed with a battery of statistics, is an ominous force indeed.
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CREATING A TAX PROTECTED RECRUITING INCENTIVE
By Roger Atchinson, CRP - Senior Vice President Sales & Marketing - RELODirect®, Inc.
Successfully recruiting a top surgeon or other medical specialist is frequently a matter of both compensation and the hospital/community being considered. For highly desired candidates, department heads or administration leaders will attempt to "sweeten the deal" with a lucrative incentive. While well intended, the reality is whatever income is offered as an incentive is subject to tax, resulting in a reduction of 40% or more. In other words, a $50,000 gross incentive effectively nets the recruit only $30,000. Additionally, while even the reduced incentive is still an attractive sum, money alone does not provide support to the medical professional and his/her family for the myriad of challenges they will face when relocating to the new location.
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"REAL EXPENSES" IN BUYING YOUR FIRST HOME
By Barbara Bartell, J. Philip Real Estate, LLC
If you are sitting in your NYC rental, Coop or Condo or relocating from out of state, and you are considering buying your first home in Westchester County, NY do you have a clear picture of the expenses to owning that home on a monthly and yearly basis not only now but projected out 5 to 10 years from now? Now is a great time to do the research so that you can know what you can afford when you explore the market in the early spring.
There are numerous articles and blogs about "what do you qualify" for in terms of a mortgage. What price house can you afford based upon your incomeand closing costs (which varies dramatically depending on how much you put down, price of home, and which bank or mortgage broker you decide to use).
But, that is just to qualify and buy the home! So, consider your personal income stream and add the following to your mortgage payment before making that decision on the price you can pay for your new home. Need to take into consideration the money you also need to save for those future big ticket items like college tuition, new cars or the "unexpected". And, have enough left over for arts/entertainment and vacations!
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THE $6.00 PROMISE
By Jeff Croy - President and CEO of Yo-Fi Wellness, LLC.
"Corporate Wellness", "Worksite Wellness", and "Employee Wellness" are phrases that are gaining attention in corporate America today. As American corporations are scrambling to keep up with escalating healthcare costs this seems appropriate. Some studies, for example, have indicated that each $1.00 invested in workplace wellness saves nearly $6.00 in healthcare and absenteeism costs for the enterprise. But, is the expenditure of money the savings driver, and is this necessarily true? I would argue that the expenditure of money is not the savings driver and the savings figure of $6.00 is true only as an average and has little relationship to individual Employee Wellness Plans ("EWPs").
The landscape of EWPs is vast and varied today. Many enterprises have understood that they need to have something in place but rely only on the recommendation of a friend in a loosely related field. While other enterprises will form committees to seek the state of the art in employee wellness to bring to their companies. But what really is the differentiator between enterprises that select employee wellness solutions casually and those that apply more rigor to the selection process? Engagement.
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YEAR-END TAX PLANNING: 10 THINGS TO KEEP IN MIND
By Paul Goldberg, CFP, CPA, PFS - P&L Financial Company
The window of opportunity for many tax-saving moves closes on December 31. So set aside some time to evaluate your tax situation now, while there's still time to affect your bottom line for the current tax year. With that in mind, here are 10 things to consider as the curtain closes on 2011.
1. Deferring income to 2012 means postponing taxes
Consider opportunities you might have to defer income to 2012. You might be able to delay a year-end bonus, for example. If you're able to push what would have been 2011 income into 2012, you may be able to put off paying income tax on the deferred dollars until next year.
2. Paying deductible expenses sooner may help you in 2011
Does it make sense for you to accelerate deductions into 2011? If you itemize deductions, it might help your 2011 bottom line to pay deductible expenses like medical costs, qualifying interest, and state and local taxes before the end of the year, instead of waiting until 2012.
3. Income tax rates to remain the same in 2012
The same six federal income tax rates that apply in 2011 will apply in 2012. So, depending upon your income, you'll fall into either the 10%, 15%, 25%, 28%, 33%, or 35% rate bracket. And, as in 2011, long-term capital gains and qualifying dividends will continue to be taxed at a maximum rate of 15% in 2012; and if you're in the 10% or 15% tax rate brackets, a special 0% tax rate will generally continue to apply.
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MD PREFERRED CITY SPOTLIGHT - BURLINGAME, CA
By Liliana Pacelli, Alain Pinel Realtors Burlingame
Looking for the ideal city to live and work? Welcome to Burlingame, CA ... Where opportunity and a great life style intersects.
Imagine tree lined streets with intense fall color, the smell of coffee houses on a crispy morning coupled with the irresistible aroma of fresh European bakeries, the train connecting important areas running along an old station, people strolling along the main avenue with no urgency as if every day is a Sunday, delectable al fresco- lunches at an international gourmet restaurant, fine shopping, and all the conveniences of a big city in a cozy village and you are in Burlingame, my town.
Settled by wealthy San Franciscans looking for a better climate for their second homes, Burlingame is a city of old charm and a vibrant life. Perhaps its friendly layout for walking or riding a bicycle completes the romance and feel of a town that still resists the pressures of the big metropolis.
But, how did Burlingame evolve into what it is today and what can it offer to you?
The San Francisco Peninsula changed after the San Francisco earthquake and fire of 1906. The area bordered by the San Francisco Bay and the Pacific Ocean south of San Francisco was rural in nature. Small farms, dairies, and little communities along the railroad dominated the landscape. After the devastating events of 1906, many displaced residents of the city sought a new beginning on the Peninsula, south of San Francisco and these little communities provided that opportunity.
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GOLF & INVESTING: OPTIMISM, FOCUS, & EDUCATION
By Steve Selengut
You knew it the moment it left the club, that spark at contact when you catch it just right. You look up. It's just reaching the top of its climb--- and heading down right at the pin, a pin positioned left of center on the elevated green, much too close to the water.
This could be the one! Four mouths hang open, not a sound. Then whack, the ball strikes low on the stick and disappears; the pin wobbles; the ball is nowhere to be seen---
Moe and Curley are certain it dropped into the hole as they hurry their tee shots and rush to their cart. "My buddy Stan holed out like that at Disney a few years ago", you hear, as they search the cooler for four cold brewskis.
Larry isn't ready to slap you on the back yet. "With my luck", he says, "the ball would go dead left, down the hill and into the water". He calmly puts his tee shot on the green, far to the right of the pin--- about where you were really aiming. What are your expectations? What scenario fits your game today?
If it weren't for optimism, few of us would continue to be golfers. The perfectly struck ball can encounter a myriad of obstacles on its way to your target. Experienced golfers expect some adversity, even when they are playing well. For most of us, it only takes one or two good shots to keep us coming back.
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TOP COLLEGE-PLANNING MISTAKES PARENTS MAKE
Brought to you by Charlotte Dougherty, CFP®
In conjunction with Lincoln Financial Advisors
Paying for your children's college educations should actually be placed quite low on the totem pole of financial priorities. Why? There are several reasons for this, such as the availability of tools to pay for college, such as financial aid in the forms of student loans, grants and other programs where loans are forgiven in exchange for public service in low-income communities. But ultimately, it's also because focusing too much on college savings can jeopardize a family's overall financial planning strategy.
First Things First
Some family financial needs may be a good thing, like college for other children, or they can be tragic, like long-term care costs for the parents themselves or medical expenses for grandparents. Devoting too many resources to college savings can cut into preparing for inevitabilities such as retirement which-unlike financing college-can't be funded by loans.
Since college costs these days are skyrocketing, how should parents prioritize their saving and investing plans? Consider adhering to the following priorities, in this order:
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MD PREFERRED CITY SPOTLIGHT - MARIN COUNTY
By Stacie Strassberg, California Mortgage Advisors, Inc.
As if the sights and sounds of San Francisco weren't enough to keep visitors completely enthralled, Mother Nature invites you to drive just a few minutes north of the city, across the Golden Gate Bridge and into a suburban area that seems like the other side of the planet from downtown. It's the lifestyle and the landscape, the call of the mountain (Mount Tamalpais) the smell of the trees, the wide, open spaces and the bodies of water. It all combines to makes you want to hike, bike, kayak, fish, sail, surf, windsurf, and do all that good stuff that gets the body moving and mind mellowing. (Yes, mellow. This is also the County that coined the phrase, "have a nice day.") In Marin, even the climate is cooperative. There is a rainy season (sometimes it dips below 40 degrees during winter) but that gives way to lush flowers, fruits and vegetable gardens, even small wineries dot the backyards of Marin County. There's also the like-mindedness and culture and commerce, award-winning restaurants, farmer's markets and distinguished schools-- spread out over 10 distinct communities that make up Marin (total population 250,000.) It's all of the above (and so much more) that makes Marin County a destination, a place that will inspire you to live life fully, be happy and productive, raise a family, build a dream house--though conservation and renovation are the way of Marin since so much of this land of superlatives (where the Coast Miwok once flourished) is protected from growth.
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MD Preferred
Medical Directories
Knowing how to reach industry decision makers is a critical part of any job search. MD Preferred healthcare directories help physicians and nursing candidates identify hospital and private practice in-house recruiters as well as the nation's leading search firms. The MD Preferred Hotel Directory helps healthcare executives plan conferences and meetings, business and personal travel.
Hospital & Private Practice In-house Recruiters
Top 100 Medical Recruiting Firms
Medical Associations & Societies
State Licensing Boards
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10 THINGS A DISABLED DOCTOR DOESN'T WANT TO HEAR
By T. KEITH MANGRUM
MEDICAL GROUP INSURANCE SERVICES, INC.
Paying for your children's college educations should actually be placed quite low on the totem pole of financial priorities. Why? There are several reasons for this, such as the availability of tools to pay for college, such as financial aid in the forms of student loans, grants and other programs where loans are forgiven in exchange for public service in low-income communities. But ultimately, it's also because focusing too much on college savings can jeopardize a family's overall financial planning strategy.
First Things First
Some family financial needs may be a good thing, like college for other children, or they can be tragic, like long-term care costs for the parents themselves or medical expenses for grandparents. Devoting too many resources to college savings can cut into preparing for inevitabilities such as retirement which-unlike financing college-can't be funded by loans.
Since college costs these days are skyrocketing, how should parents prioritize their saving and investing plans? Consider adhering to the following priorities, in this order:
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MD Preferred
Career Services
With a growing physician shortage, with healthcare reform swelling the ranks of patients, with rising malpractice premiums, shrinking revenues and growing government regulation, it has never been more important that a physician or nursing professional make the right choice when considering a career change.
MD Preferred offers the only medical job board with top tier job listings and access to  award winning, doctor friendly professionals in: Real Estate/Relocation, Mortgage Services, Private Banking Services, Legal Services, Accounting Services and Financial Planning.
Medical professionals requiring discrete professional representation during their job search can call 800-260-8366 to speak with a personal search associate.
MD Preferred/Medical Match Job Board
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MALPRACTICE INSURANCE - THE FINANCIAL BLACK HOLE
By William Clay Tucker, CAP, CMFC, CRPS
The Woodville Group, LLC
Most states don't recognize small insurance companies as beneficial holders for required medical malpractice coverage. Couple this with the fact that most medical practitioners aren't insurance experts, and the end result is that doctors have only a few (very similar, quite expensive) malpractice insurance options. When it comes time to purchase or renew your medical malpractice insurance, you have three options:
*Retail Med-Mal: while this may seem like the simplest solution, it is also the most expensive. With zero returns on premiums paid, you are funneling your money into a "black hole" where, regardless of your claims history, you never see a return on reserves. In the event of a claim, you have little say so in your defense or the claims negotiation and settlement process.
*Normal Risk Retention Group: although an RRG is a step in the right direction, your medical group will sharing overall medical malpractice risks with other medical groups insured by the RRG. While you may get back some of what you put in (as a return on equity or a stock repurchase), the amount depends on the claims experience of the RRG's insureds as a whole and the financial condition of the RRG at the time of your departure from the RRG. Under this approach, the medical group's financial investment remains 100% in the RRG during the entire insurance coverage period.
*Physicians Benefit Resources Risk Retention Group: PBR RRG retains a small percentage of overall insurance risk (an average of ten percent) and therefore your group's participation in shared risk with all of PBR's insured medical groups remains small. Your initial one time equity buy in (6% of mature premium) is small for the reason that PBR's retention of risk is small. PBR cedes off an average of 90% of overall risks into its reinsurance structures. The primary reinsurance structure is the reinsuring Captive Insurance Company (CIC) which is owned 100% by your medical group's owners and only reinsures the physicians in your medical group practice. In the PBR RRG model, the majority of your medical group's financial investment remains in its CIC, which will remain owned and controlled by the owners of your medical group.
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