Independent Contractor

[Baritonebass]

how Difficulty is it to setup a gig as an independent contractor??? what are the cost of organizing the paper work, lawyer, accountant feels, filing ect for a company like "health south"

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[RUOkie]

Contracting how? Like billing fee for service? Chart reviews? Legal work? You need to be a little more specific.

 

[Baritonebass]

Let say you get a job offer where you are paid as an "independent contractor" or where you admit to a rehab hospital as an independent contractor. how difficult or expensive is it to setup the business thing needed to be successful. Like accountant, billing service, or LLC. Is that something that would require that you have a enough money to absorb those cost upfront and continue paying bills until the collection come in 3-6 month later. Just trying to understand other models of practicing besides "salary or salary with productivity model". I've worked pretty hard and in theory would like to "eat what I Kill"

 

[Paddington]

I've seen that job listing you're talking about. It's spammed on job boards for a variety of different cities.

Honestly, it seems like a royal screw. To work inpatient for collections is crazy when there are countless unfilled jobs for which they will give you a generous salary.

The setup for independent contractor is not that difficult. You don't need a lawyer. You file some paperwork to create a PLLC and the cost is maybe a few hundred dollars.

But it's a royal screw because you'll pay double the FICA tax, you'll get zero benefits. You'll be shocked at how much stuff like health insurance and disability insurance cost and the mountains of paperwork you have to fill out to get those things.

 

[RUOkie]

Let say you get a job offer where you are paid as an "independent contractor" or where you admit to a rehab hospital as an independent contractor. how difficult or expensive is it to setup the business thing needed to be successful. Like accountant, billing service, or LLC. Is that something that would require that you have a enough money to absorb those cost upfront and continue paying bills until the collection come in 3-6 month later. Just trying to understand other models of practicing besides "salary or salary with productivity model". I've worked pretty hard and in theory would like to "eat what I Kill"

ok. The answer would depend upon the hospital's case mix and payor mix. While there are many inpt rehab physicians who do their own billing/collections, this model is falling out of favor. Mostly because reimbursement is low, and it really helps to have that medical directorship to add to your income. The hospitals want their medical directors to be employees so that their interests are aligned. Also, the growth of ACO's and bundled payments are making aligned interests even more important.

If you choose to go down that path, you will need a billing/collections company (usually take 7-8% of collections), an accountant and to set up a PC/LLC depending upon your state laws. The costs of those things depend upon the market you live in. I am a solo practitioner (subchapter S-corp) with a primary outpt MSK practice. I pay $350/mo for my CPA plus tax preparation (business and personal)

And I am in negotiations with my local hospital in being an employee.