Business overhead expense insurance; need advice

[Ligament]

Thinking about business overhead expense insurance for my solo private practice. My overhead is pretty significant. Is anybody willing to school me on this topic?

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[pmrmd]

Mine too. Some costs can’t be reduced. Delayed payments requiring lengthy appeals plays havoc on budgeting and planning. Hate it.

 

[promethius]

For some of the more experienced solo practitioners out there, what do you find are your most significant overhead expenses and any helpful tips for how best to limit them?

 

[nvrsumr]

most significant expense is hiring another doc....

 

[drusso]

Thinking about business overhead expense insurance for my solo private practice. My overhead is pretty significant. Is anybody willing to school me on this topic?

We looked into it. It's expensive and might not cover you for events that you're most concerned about. It's really for scenarios like your office gets flooded and you can't see patients. May want to consider hiring a very productive associate who can pick up the slack if you're out of commission for a while.

 

[mickey1t]

When u say significant, what specifically do u mean?...40% 50% 60%???....as for hiring the new doc/associate, definitely a costly expense but usually financially rewarding if the patient volume supports it

My 0.02


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[nvrsumr]

I am not certain I understand what overhead expense insurance is exactly? Would just get a biz line of credit and use to smooth out the financial bumps. Usually can get 100k for a song. Take heloc if u need more. I have a lot of unused credit that I pay a nominal fee for just in case.

 

[drusso]

I am not certain I understand what overhead expense insurance is exactly? Would just get a biz line of credit and use to smooth out the financial bumps. Usually can get 100k for a song. Take heloc if u need more. I have a lot of unused credit that I pay a nominal fee for just in case.

Business overhead expense disability insurance - Wikipedia

Business Overhead Expense Insurance

 

[MD Financial Services Scott]

Their are two main types of Business Overhead Expense coverage. One type is commercial in nature and takes care of office expenses incase of incident like fire, flood, theft, building closing and such. The other type is if you become disabled and can't work thus the revenue to the practice stops but the bills continue. Both types are a deductible expense to the business.

 

[MD Financial Services Scott]

With business overhead insurance you are not insuring invoices rather you are insuring business expenses you have agreed to pay. A few examples are, rent, equipment leases, employees. If you are disabled and out for 12 months it is easier to buy an Overhead policy to cover those expenses at probably $100 per month than to pay that out of ones pocket. With regards to employees, it is hard to find good reliable employees so once you get them employers will do anything they can to keep them even, if it means paying them while under utilized due to the physician being out on a disability.

 

[10KHertz]

Sounds like more expenses to protect the underlying issue, cost containment.

I see collections as key to a good solo practice. My biller for years couldn’t keep up. I changed, and I fighting for every dime. I also recommend requesting COLAs on all your insurance contracts . Half of them will allow it. 2-3% per year is average.

Finally , go over all your EOBs. Do your own quickbooks monthly . Don’t leave this up to your manager or accountants. By doing this tedious accounting you WILL see patterns with your practice overhead.

 

[Green Grass]

Private practice sounds easy.