As an independent or partner in a practice, you’ve invested time, energy and money in building and maintaining a successful practice. In the event that you become seriously ill or injured and cannot work, you would need to cover your share of the business expenses to avoid a financial setback.
According to the Medical Group Management Association, the median overhead expense for a primary care physician’s practice is estimated at 60% of the revenue generated¹. Individual disability benefits are designed to cover your personal and family expenses, not pay overhead expenses for your practice. Now consider that it may take several months or much longer to fully recover from a serious illness or injury, so you may be forced to dip into your savings and investments to keep your business running.
Your Practice Depends on You
As an independent practitioner you are responsible for the care of your patients, the salaries of your staff members and the future of your practice. According to a survey by the Physicians Foundation², roughly 40% of doctors see 11 to 20 patients a day. Could you or your partners afford to lose thousands of dollars of revenue if you became ill or injured and were unable to pay your share of the rent or mortgage, utility bills, office expenses, payroll, or cost of a replacement while you recovered? Without Business Overhead Expense coverage, your partners would have to bear the additional patient load and financial burden.
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Security for Practice Owners
In a group practice, it’s advised that each partner purchase business overhead expense insurance, so all the owners have the assurance that there will be funds to pay the disabled physician’s portion of the office expenses, which also may include business loans and other payments to vendors and creditors. If needed, the Business Overhead Expense policy can also help pay for locum tenens services to cover the patient load of the partner who is unable to work.
TMA-Sponsored Business Overhead Expense Plans
TMA Insurance Trust offers TMA members and nonmembers competitively priced Business Overhead Expense plans from a range of carriers. However, TMA members have exclusive access to the TMA Member Business Overhead Expense Plan issued by The Prudential Insurance Company of America. This plan was designed with special benefits for members, including:
• Higher coverage amounts — up to $50,000 per month for up to 24 months for a total of $1,200,000 in total benefits.
• Lower premiums for twice the term. The TMA member plan provides up to 24 months of coverage — while many other plans only cover 12 months.
• Locum Tenens coverage available
• A TMA member plan pays the first benefit retroactively after being disabled for 30 continuous days.
• During disability, coverage is continued at no cost to you.
• You can receive benefits even if you’re partially disabled and your practice’s revenue suffers.
• Payments can be paid either to you or your practice.
• If you decide to move out of state, you can continue your coverage as an affiliate TMA member until you reach age 75.
A TMA Insurance Trust advisor can tell you more about the options available to you. You’ll have the flexibility to tailor your policy to meet actual expenses — rent and utilities, staff salaries and benefits, loan payments, maintenance services and more. This can help ensure that if the unexpected happens, you’ll be fully prepared to pay your share of the bills on time, without exhausting your personal savings and investments. And you’ll have peace of mind that your patients will be taken care of and your practice will run smoothly without you, at least for a time.
TMA Insurance Trust is an independent, full-service insurance agency with over 60 years of experience helping Texas physicians protect their assets, family and practice. Advocating for members, TMA Insurance advisors offer unbiased information and strategies, along with exclusive group rates on a range of the highest-rated plans in the industry. And since advisors don’t work on commission, there is never any obligation or sales pressure.
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¹ liveClinic Healthcare Blog — February 2017