Shell companies and ownership games

[BlackSails]

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With lawsuits being such a huge issue, why dont more physicians play games with ownership and incorporation?

Ie, When I do your knee surgery (or whatever), I am contracting with you, not as BlackSails MD, but as BlackSailsOrthopedics. When you sue me, you can only get what BlackSailsOrthopedics has, which would be basically nothing. (I lease my equipment from BlackSailsMedicalSupplies, and my office is owned by BlackSailsRealEstate.) For added security you can have all these companies owned by your wife, or a trust, etc.

Now, I know lawyers can still penetrate the corporate veil, but if your companies and assets are owned by someone else, such as your wife, or a trust, is there any way that lawyers could get something out of the doctor pinata?

 

[etf]

i'm only a pre-med so take this with a grain of salt, but from what i understand, you'll probably only get sued if the lawyer thinks they can get you on gross negligence. at that point, the corporate entity fails to protect you and you are held personally liable.

 

[Tenesma]

that shell game works up until a certain point

medical malpractice is a personal issue and therefore they can go after you personally ---

the corporate structure protects you from non-malpractice claims/lawsuits... so let's say your billing company sues you - they can only go after your corporation because that is who they contracted with

oh -- and if the settlement is greater than your malpractice coverage then it comes directly out of your pocket --- the court can actually make it worse by pegging a percentage of future income to cover the settlement --- and you can't choose not to work (because that would be contempt of court)...

so make sure your assets are protected (ie: maximize 401k/IRAs), put your house/assets in trusts.... and consider getting an umbrella for the malpractice

 

[IceMan0824]

that shell game works up until a certain point

medical malpractice is a personal issue and therefore they can go after you personally ---

the corporate structure protects you from non-malpractice claims/lawsuits... so let's say your billing company sues you - they can only go after your corporation because that is who they contracted with

oh -- and if the settlement is greater than your malpractice coverage then it comes directly out of your pocket --- the court can actually make it worse by pegging a percentage of future income to cover the settlement --- and you can't choose not to work (because that would be contempt of court)...

so make sure your assets are protected (ie: maximize 401k/IRAs), put your house/assets in trusts.... and consider getting an umbrella for the malpractice

Beat me to it.

I am going to add on top of Tenesma,

A lawyer can sue both BlackSailsMD and BlackSailsOrthopedics for medical malpractice scenario, that is, both a person and a corporation can be listed as defendant on the suit.

Medical malpractice will probably be held against the person as it is a personal issue but the corporation can be sued for gross neglience (hiring a doctor prone to malpractice - hypothetical case)

From what I have seen though, medical malpractice usually has a person listed as the defendant.