How Safe Is It to Practice Psychiatry with High Net Worth

[AD04]

Let's say you are worth 8 figures.

You have normal malpractice coverage.

You practice good medicine and spend 1 hour for new patients and 30 minutes for follow ups.

How safe will your assets be?

How much safer will your assets be if you practice under a government entity and is protected by Federal Tort Claims Act (FTCA)?

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[PikminOC]

How are you worth that much, Chelsea Clinton?

 

[dl2dp2]

This is immaterial. If you have an 8 figure net worth, there are better ways to protect your asset than working for a federal entity.

In fact, the point of having an 8 figure net worth is such that you don't have to work somewhere you don’t want to work at for financial reasons. Right? How about buying a higher malpractice insurance term limit instead.

 

[TexasPhysician]

There are still risks, but depending on the state, you can utilize many asset protection strategies.

 

[MacDonaldTriad]

Government entities who go "at risk" because they have an army of lawyers and trying to take them to court is like hitting a wet paper bag aren't necessarily safer for a doctor's assets. They tend to work for the government's interests and will negotiate settlements but tend to settle rather than fight for the good name of the practitioner. I know we are talking about rich people's problems, but if I had 8 figures, I would carry a boat load of coverage, or just not practice and enjoy life.

 

[Merovinge]

You are absolutely at significantly greater risk if anyone knows you are worth that much. Malpractice lawyers are more interested in the assets than the merit of the case. I've heard them talk about this and they don't even try to hide that fact. I would make sure you have a strong asset protection lawyer, likely need to be utilizing irrevocable trusts or off-shore accounts and no MD should be providing advice on that kind of stuff.

Second, good for you for having plenty to live off of and still wanting to help others through medicine. You have the ultimate freedom to find the job that maximizes your ability to help others which is pretty amazing. You just need to do a lot of due diligence in learning about insurance options and asset protection which seems a relatively small price to pay.

 

[AD04]

That's a bummer. I was planning to practice medicine until I die.

At what net worth would be financial risk outweigh the financial benefit?

Just to clarify, I am not worth that much.

 

[dl2dp2]

That's a bummer. I was planning to practice medicine until I die.

At what net worth would be financial risk outweigh the financial benefit?

Just to clarify, I am not worth that much.

This is confusing. IF you work to make money at all, the financial benefit always outweighs the financial risk by definition.

A financial risk is a calculatable number. You can bracket it using numbers given by insurance companies. You best spell out exactly what your concerns are with respect to practicing.

 

[SourceOfDenial]

If you have an eight figure net worth you have financial advisors and lawyers. Ask them, not randos on the Internet. #1stworldproblems

 

[Stagg737]

If you have an eight figure net worth you have financial advisors and lawyers. Ask them, not randos on the Internet. #1stworldproblems

Lol, this. If I had 8 figures of net worth my first steps would be to hire a solid financial advisor and get a good lawyer on retainer and let them stress about that stuff. Fortunately for me, my net worth is closer to negative 8 figures, so not a problem I'll be encountering any time soon.

 

[whopper]

The question is too open ended. I'd recommend you talk to a financial adviser.

What is the sound of one hand clapping? and just to confirm I have 2 hands.

 

[nexus73]

Slowly convert your millions of dollars into gold bars and hide it where only you know the location. Impossible for a lawyer to collect money they can’t find.

 

[Armadillos]

As mentioned above talk with a professional, but I would chip in that I believe things vary by state quite a bit. So some states would be riskier than others. Also if your considering residencies, I believe some states have specific laws that would make residents or attendings at public (but not private) universities immune from personal liability in malpractice lawsuits.

 

[Premed341]

Couldn’t you just put your 10 million in your wife’s name, not have any malpractice insurance, and dare people to sue you? Seems very safe, no?

 

[PsyDr]

"You" the person should never be worth 8 figures.

Your trust, FLP, IRA (depending on state), primary residence (depending on state), LLC (preferably housed in NM) could always be worth tons of money.

Lawsuit? If you’re worth a lot, then you’re a target. If your personal net worth is limited and the majority of your assets are wrapped up in financial instruments that cannot be taken, then it’s not in anyone’s best interest to sue you.

 

[Merovinge]

Slowly convert your millions of dollars into gold bars and hide it where only you know the location. Impossible for a lawyer to collect money they can’t find.

Crazy thing is we already have grey-level legal options that are much easier and safer than this ala Panama Papers. Jeffery Epstein's last second change in estate is another great example for those looking into forensic accounting. If anyone has good podcast recommendations in this realms I somehow find it morbidly fascinating.