Out of the box idea

[mmag]

Can a private practice anesthesia group reform as a non-for-profit? The hospitals around here are all non-for-profits awash with money that employ physicians and bill for services. PP group has no profits as all billing is paid out and would be able to attract new grads seeking PSFL.

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[ChiDO]

No way the government let's you qualify for that status

 

[Silo004]

Makes sense to me actually.

 

[nimbus]

We basically operate as a nonprofit because we zero out the books and distribute all the money to ourselves at the end of each year. I think this is standard for most independent anesthesia groups. As employees, we still pay taxes on our earnings, just like employees of nonprofit organizations do.

 

[coffeebythelake]

Nonprofit involves doing some uncompensated charity care, which I'm sure many groups do any way. There might be a lot of legal mumbo jumbo involved jn getting that status and making sure the books are appropriate. Is it worth the extra cost to do that for a small group?

 

[jwk]

We basically operate as a nonprofit because we zero out the books and distribute all the money to ourselves at the end of each year. I think this is standard for most independent anesthesia groups. As employees, we still pay taxes on our earnings, just like employees of nonprofit organizations do.

Exactly. Can't imagine why doing this would be advantageous. The employees/docs/partners are paying personal income tax on whatever they make regardless. What would the money left in the pot be used for?

 

[abolt18]

Exactly. Can't imagine why doing this would be advantageous. The employees/docs/partners are paying personal income tax on whatever they make regardless. What would the money left in the pot be used for?

As OP noted at the start. If they could be designated as a non-profit, they could attract new grads with student loans on the premise of qualifying for student loan forgiveness through PSLF.

 

[ambiturner]

Being a non-profit would also require your income to be reported publicly and subject to ‘fair market value’ scrutiny. Your compensation would have to be typically within the 25th-75th percentiles unless you can justify anything higher as being due to the exceptional nature of the employee. As also noted you would need to be doing charitable care.

If PSLF is the goal then there are likely more steps that would need to be pursued to get the PSLF seal of approval. I am aware of some large academic physicians groups that do not qualify due to the nature of the employment structure so I don’t believe that every nonprofit necessarily qualifies.

The amount in legal fees this all would require would probably be better spent on signing bonuses or higher salaries so that new grads could pay their own loans.