• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Medical practices may form their own insurance companies


Find out the advantages of establishing your own insurance company.

Q: I've heard that it's possible for medical practices to establish their own insurance companies. Is this true? If so, what are the advantages of doing so?

A: In recent years many small- and medium-sized businesses, including medical practices, have decided to set up small insurance companies both for improved risk management and for the potential tax benefits that are available from forming these companies.

If a doctor owns the practice, the internal revenue code permits a family member, including a child or a child's trust, to own the insurance company. This arrangement can be a very effective means of addressing estate-planning concerns.

This is a very creative planning area and is generating a great deal of interest among physicians as they seek ways to reduce expenses and improve overall finances.

Send your money management questions to medec@advanstar.com Answer provided by Paul J. Mershon, CFP, CLU, ChFC, president of Silverhawk Financial Planning LLC in Scottsdale, Arizona.

Related Videos