Why I hate lawyers...

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Aucdoctobe said:
There are quite a few ways to slay the lawsuit demon. I worked as an insurance adjustor for a major company, and we had methods for preventing lawsuits.

Here are my recommendations:

1. Open up your medical practice and designate it as "nonprofit." Nonprofit means that it serves community based needs and your accountants manipulate the books to show zero profit for the corporation. You can still make quite a bit of money but your corporation has to show a profit of "zero." It happens all the time.

2. Take medicaid and medicare to establish your nonprofit status as well as establishing a loose affiliation with the government.

3. Require patients to sign a waiver of liability before treating them. In other words, make them sign a form waiving all monetary rewards regardless of any consequences.

4. Just in case any provision of the waiver is struck down, require a mandatory arbitration clause (avoid the jury at all costs)!

Methods like these would decrease lawsuits exponentially and protect doctors. I'm going to do them myself.




Hey Aucdoc....

Your suggestion 1 seems HIGHLY risky. Although you claim that lots of people are doing it, it was a similar "cooking the book" that got our nice friends at Enron and Tyco to enjoy a lenghty stay at a prision. There is something called the GAAP (good accounting- and something which I forgot- principle), and that calls for accuracy in the books. Break this rule, and you have a LOT of explaining to do. My friend, if you follow your rule 1, I personally will not take the case as a lawyer (as I have ethics and do not want to tag you along for the ride--and your money--just to tell you later on that you have no case)

Your suggestion #2 is also highly risky since having a "loose affiliation" will cause more scrutiny come tax time. The IRS takes Section 501(c) VERY VERY seriously (does the IRS ever really take anything not seriously), and if you want to get the government involved, that makes you even more vulnerable to federal law ON TOP OF STATE LAW!!


Suggestions #3 IS HIGHLY ILLEGAL!! If you want to lose your license, then you can do this, but this is BLATANTLY ILLEGAL. Might as well have posted a message saying that you will threaten to beat up your patients if they go see a lawyer!


I commend you for your thoughts!

Have a nice day!

BTW.....what "major" insurance company did you work for, because they have highly incompetent adjustors and consultants if they are advising these things in order to reduce malpractice insurance. It's good that you left because this place is looking for a lawsuit against them by a patient (ERISA)!!
 
Res-J said:
It's unfortunate that Kerry has chosen a bloodsucking personal injury trial lawyer, but my vote still goes to Kerry. Bush CANNOT win.

oh well we have no other option:

NADER FOR PRESIDENT!
 
medlaw06 said:
Hey Aucdoc....

Your suggestion 1 seems HIGHLY risky. Although you claim that lots of people are doing it, it was a similar "cooking the book" that got our nice friends at Enron and Tyco to enjoy a lenghty stay at a prision. There is something called the GAAP (good accounting- and something which I forgot- principle), and that calls for accuracy in the books. Break this rule, and you have a LOT of explaining to do. My friend, if you follow your rule 1, I personally will not take the case as a lawyer (as I have ethics and do not want to tag you along for the ride--and your money--just to tell you later on that you have no case)

Your suggestion #2 is also highly risky since having a "loose affiliation" will cause more scrutiny come tax time. The IRS takes Section 501(c) VERY VERY seriously (does the IRS ever really take anything not seriously), and if you want to get the government involved, that makes you even more vulnerable to federal law ON TOP OF STATE LAW!!


Suggestions #3 IS HIGHLY ILLEGAL!! If you want to lose your license, then you can do this, but this is BLATANTLY ILLEGAL. Might as well have posted a message saying that you will threaten to beat up your patients if they go see a lawyer!


I commend you for your thoughts!

Have a nice day!

BTW.....what "major" insurance company did you work for, because they have highly incompetent adjustors and consultants if they are advising these things in order to reduce malpractice insurance. It's good that you left because this place is looking for a lawsuit against them by a patient (ERISA)!!


Wow medlaw06! Thank you for the arguments. I really like them.

Where to begin:


?Cooking the books? is a highly subjective and misleading term. GAAP (Generally Accepted Accounting principles) is designed for accrual basis accounting. Repeat: GAAP is designed for accrual basis accounting! If it weren?t we would all be subject to a straight-line, flat tax accounting. But were not! Double declining balance, rapid depreciation, FIFO, LIFO, ect? These are all methods that are perfectly legal.

In comparing my arguments to Enron and Tyco, you have committed a classic straw man fallacy. I never advocating making stuff up, shredding evidence, creating assets that no GAAP method advocates, running and hiding from the federal government. I merely tried to explain that there are LEGAL methods that one can use to protect their assets. It?s called good business sense!

I loved the argument about 501c. I never advocated tax fraud. I advocated using the tax benefits that are accessible to health care organizations. Yes, there are ways to abuse nonprofit status. However, the IRS has explained that medical practitioners can operate non-profit businesses:

http://www.irs.gov/pub/irs-tege/eotopicc84.pdf

The key is to maintain common sense. Use a good accounting firm to make the initial filings and stay GAAP/IRS compliant. If you need more sources, please ask. I?ve spent the last 6 months of my MBA studying this topic for leisure. I find accounting quite fascinating. It?s like studying logic in terms of dollars and sense!!!!!!!!!!


lol? Well, I knew I would catch flak over the agreement waiving the right to sue. On the surface, it does seem blatantly illegal. But not so fast? The ?state of mind? or ?duress? defense seems to be huge in the medical eye. But let me ask?? Let?s just say that a patient comes in with a clear state of mind.. Let?s just say that a doctor submits a contract for payment to the patient with a hypothetical list of all things that could go wrong? Now, let?s say that patient signed a contract agreeing to treatment despite the consequences(in which the terms were clearly stated in a way that the least sophisticated consumer could understand). Let?s also assume that the customer was in a correct state of mind. Correct me if I am wrong but this is a legal contract under contract theory. Whether you agree with me or not, we will see more of this issue in the future ? through appellate rulings and what not?

As for my last argument about arbitration rulings.. Every company and their mama are doing them today. This is what brokerage firms, banks, credit card companies; law firms (even) try and avoid the jury. It works for the most part.

Now, as for what company I worked for.. I worked for Farmer?s Insurance (rotates between 2nd and 3rd largest auto company in America). I am a licensed property and auto adjustor in all 50 states! We, like any other successful company, had methods for preventing bad faith lawsuits among those that we entered into a contract with. However, we could not prevent lawsuits from parties that we did not enter into an agreement with. Furthermore, let me tell you a little story about a state called New Jersey. Its quick ratio (dollars paid out/dollars earned from premiums) is very high. Farmers, along with the other major companies, tried to pull out of the state not too long ago. The legislature passed emergency legislation to hinder this process. In return, they promised to pass legislation-hindering lawsuits ? as they recognized the abuse that it had done to their own insurance industry.

Now, as for taking the case? To put it frankly, you are an attorney. This isn?t medicine where you graduate and get a constant stream of business. It is law where you can graduate and be extremely poor ? as many new law graduates are. People in medicine have a tendency to look at the cases of the most successful lawyers and use that as a sample space outcome for the entire lawyer population. Not so.. Bad statistical fallacy.. Lawyers are, for the most part, desperate for business. It?s easy to find an attorney to take your money. If you have it, most of them will take it. That is what makes them such formidable and unethical opponents when it comes to lawsuits. If doctors don?t fight back on that level than they will suffer more ? as what is happening now. I?m glad that you are not ruthless and have morals (as you tell me on this internet forum; keep in mind that all lawyers say that until they cheat you). But your brethren are certainly different.

Part of fighting back means implementing procedure control to deter lawsuits.
 
japhy said:
cjm,
i had to correct several items you mentioned. first off, peter singer is at princeton not harvard. his arguments regarding euthanasia are well developed even if you do not agree with his conclusions.

second, people seem to think that if you want to make money you get a mba or a jd and, boom, your set. if you look at average salaries for physicians, lawyers, mba's you will see that docs come out on top. yeah, there are some lawyers and mba's making obscene amounts of money, but they are the exception rather than the rule.

finally, your analogy regarding lawyers and contngency fees is absurd. i don't see anyopne complaining when lawyers work on contingency and lose a case, thus receiving no payment. this system allows people who would not normally have access to the court to be able to receive representation.

First, thanks for pointing out Singer's pedigree-- for some reason, I had him as a Harvard man; I haven't read any of his essays in ages (for obvious reasons 😛). Also, it was only his arguments regarding euthanizing handicapped children which I was alluding to; his arguments in those analyses clearly contradict his reasoning in several other areas of his philosophy (e.g., that all animals are "equal", humans included). My main point in mentioning him was that the human mind is capable of making even the most self-evidently wrong conduct seem palatable, and that mere sophistry, or even genuine intellectual facility, should not be our criterion for determining right from wrong as a society.


Second, you state that "docs come out on top" as regards salary when compared to MBA's and JD's; my response is: well I should damn well hope so. 😀 Doctors put in 8-10+ years, lawyers only 3 and MBA's mostly 2. If only for this reason (but there are many other reasons why they should be imo), it's only sensible and fair that doctors be better compensated than attorneys or MBA's. Go back to my first or second post in this thread, and see that I feel the problem to be that the market for attorneys is beyond saturation, and since law schools have not restricted the number of seats available (and, in fact, have likely increased the #), the result is an absolute surfeit of attorneys all looking for work. Attorneys are the only profession who can create work for themselves (and they have to in order to stay afloat), and they largely do this by seizing upon the baser inclinations and vulnerabilities of those who are easily suggestible and overly emotional (both the people they recruit as clients and the juries they empanel to hear frivolous cases). And this is simply wrong.



And my point about contingency fees is not "absurd", as you said. If you'll note, I suggested that, in my opinion, the best possible system would be a costs+fee (either per hour or per day/week/month worked) system whereby if an attorney spent 2000 hours working on a case, they would be reimbursed for those hours (at, for example, $150/hour, which is a reasonable rate) as well as being paid an additional fixed fee for their "profit". This could either be a previously agreed upon fee which would not be tied to the amount sought in damages (i.e., not a % of the awards). This would have the effect of lowering the absurd damages sought in many of these frivolous cases (note: frivolous cases), which are just grossly disproportionate in most instances. Because believe me, these lawyers are not seeking these sums to benefit their clients. If you think they are, well, I have a few choice land-connecting, water-spanning structures to sell you. 😉

If the trend towards higher damages does not abate with the enactment of such measures, then caps on subjective criteria such as "pain and suffering" should be put in place. The system is clearly broken-- I'll leave it to others to quibble over how best to fix it; but it MUST be fixed. Unless, of course, you think that there's nothing wrong with it, which I have a feeling you do. Fortunately for me, that view is only shared by attorneys themselves and extreme liberals. Even if the trend in damages sought does not change, I'd much rather see the money go into the hands of those who were affected (whether I feel it is commensurate or not) than some greasy medmal lawyer with already-fat pockets, so I would still push to have the aforementioned payment scheme enacted.


And if people who don't have the means to pay brought a justified suit which didn't warrant obscene damages (say, $30-40K), and the attorney spent a large amount of time preparing and pursuing the case, and then the plaintiff couldn't afford to pay the attorney for the hours spent after receiving their damages and paying for their medical expenses etc., well, they could just present the attorney with their "Lawyer Insurance Card ?", and the insurance company would just reimburse the attorney what they felt his time was worth (which will no doubt be drastically less than what he feels it is worth-- say, $60/hour). And all attorneys would be compelled to accept such insurance, too. After all, attorneys are so concerned that people who "cannot afford it" have access to representation, right? 🙄 They're compassionate souls, those attorneys. And this would be a good way to achieve it while ridding ourselves of the excesses of the current system. Yes, lawyers wouldn't make nearly as much money anymore, but c'est la vie, right? 😀


They'd also get paid by such companies for their time if they lost the case, thus eliminating any reason whatsoever for contingency fees. Glad we're in agreement. 😉
 
singer's arguments are not self-contradicted by his views regarding animal rights. his views are consistent across all species, but anyway, definitely a minor point.

while i agree that the medmal system has serious flaws and needs to be fixed, i do not agree with much else you spout. you have this seriously flawed notion that doctors somehow deserve their salary based on years of study. well phd's study as long if not longer than docs and rarely are they making even close to what a phyisician does. furthermore, while it technically takes more than four years to become a doc, it is disingenuous to compare the schooling and residency of docs with that of jd/mba. why should one make more simply because one studied for more years? does bill gates deserve to make what he does, hell he didnt even finish college?

you argue that the best system would be a cost/fees system, yet you do nothing to support this assertion. why is it better than a contingency system, what advantages does it have and more importantly what disadvantaged does it entail? and why would the awards be lowered simply because the lawyer gets less of the money. hell, the public might be inclined to make the award larger because more of it goes to the plaintiff and NOT the lawyer. you need to back up your claims with some facts.

and why on earth should there be lawyer insurance? the reason for the current state of health insurance goes back to the 50's when companies wanted to attract employees but could not afford to pay them more. hence the development of health insurance.
 
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