One of the largest contributors to medical and insurance rates increasing is the rise in malpractice lawsuits. Some of them are frivolous and some are not. Trial lawyers have been trained in the art of seizing assets, after all they too have families to feed. And behind every lawsuit is a client willing to sue. On the other hand there are many legitimate malpractice lawsuits that aim to punish careless physicians who did in fact make a mistake.
The problem is that lawsuits whether they be justified or not cause rates to increase. When rates increase, access and level of care goes down. America should stand as an example of high quality care to the rest of the world. Unfortunately, the more than 90% of the worlds lawsuits happen in the United States.
Its unfortunate when physicians who truly want to serve and care for others are unable to do so when they have to worry about being sued and the extreme high costs of malpractice insurance. In fact, lawsuits and high insurance costs have driven many physicians away from practicing medicine.
Let’s face it, when a physician is targeted by a patient, its going to be hard for the physician to treat their patients the same as they did before. The level of care is dropped and the physician always has that threat in the back of their mind. This is a problem that needs to be addressed before the level of care drops even further.
Pursuing award caps and legal actions have proved to be largely ineffective. Malpractice insurance costs continue to rise and the clauses in malpractice insurance policies are designed to protect primarily the insurance companies.
Properly structuring assets with correct legal entities such as LLC’s and Limited Partnerships has proven to be most effective. This creates a solid barrier of protection that can actually prevent lawsuits from being filed in the first place by scaring away frivolous suits. With the correct legal entities in place it can make it virtually impossible for trial attorneys to access assets.
This is why business entities should always be separate from personal entities. And proper entities used for certain types of assets. We have all heard of piercing the corporate veil and know that some entities simply do not work.
For more information on which legal entities should be considered visit us at www.assetfoundation.com
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