THE BUSINESS OF PRACTICE: OPPORTUNITIES BEYOND CLINICAL PRACTICE Table 1. AVMA Life Disability Claims 2014


Short Term Disability Claims Short Term Disability Enrollees Long Term Disability Claims Long Term Disability Enrollees


129


3951 350


23220 2015 143


2120 293


22834


There are disability income insurance policies available for veterinary students who are not earn- ing income that cover tuition, student loans, and provide income in the event of disability. Supple- mental Disability Income policies are also available for purchase to cover student loan obligations for recent graduates. If a veterinarian is in private practice, whether as


and Accountability Act (HIPAA), and there are no demographic data as to practice type. In a German study, the rate of accidents reported to an insurance database was 2.9 times higher for veterinarians than for physicians in general practice.6 In a study commissioned by the British Equine Veterinary As- sociation and conducted by leading medical profes- sionals at the Institute of Health and Wellbeing and the School of Veterinary Medicine at the University of Glasgow, 620 equine veterinarians completed a work-related-injuries questionnaire. “The results of the study suggested that an equine vet could expect to sustain between seven and eight work- related injuries that impeded them from practicing, during a 30-year working life.”7 Equine practice is a physically demanding, hands-on activity requiring quick reflexes, and in the event of an injury or ill- ness, the ability to earn an income can be lost. In most instances, there is no “desk duty” where one can transition during convalescence and recovery. The financial repercussions can be disastrous unless one has planned ahead as prolonged loss of earned income can also result in decreased retirement in- come given that Social Security benefits are depen- dent upon the stream of lifetime earnings, and IRA or 401k contributions may not be possible in the absence of earned income. Financial pressures in- crease if there are extensive medical bills, and the stress of the injury or illness combined with finan- cial stressors can lead to emotional and psychologi- cal distress. The data demonstrates that there is a significant risk of disability during one’s career, so it is necessary to protect future income.


2. Solution


The equine veterinarian needs to be prepared and plan ahead for the worst-case scenario by purchas- ing both health care insurance with comprehensive catastrophic coverage and long-term disability in- surance. These coverages are the financial life rafts for economic survival during a disability, and coverage must be in place prior to the occurrence of any accident or illness. Long-term disability insurance helps to safeguard self-employed veterinarians and their families from debt and a total depletion of savings. Veterinari- ans employed by private practices, public institu- tions, and corporations must know what benefits are provided as part of their benefit package and deter- mine whether these benefits are adequate in the event of long-term or permanent disability.


a solo practitioner or in a group practice, how will the practice expenses be paid during a long-term disability? Common expenses such as rent, equip- ment payments, staff salaries, answering service, electric, telephone, etc. will continue. Professional overhead expense insurance can be purchased to cover the business expenses and keep the business operational. In the case of all insurance policies, it is impera-


tive to understand what is covered, what is ex- cluded, the duration of coverage, the commencement of payment of benefits, and the duration of benefit payments. Always read the fine print and ask questions of the insurance agent and other veteri- narians. One needs to know how disability is de- fined, if there are residual benefits that pay the difference between what one earns as one transi- tions back to full-time work, and what was being paid in disability payments. Determine whether there is own occupation coverage that pays full ben- efits if one is able to return to work in a profession other than veterinary medicine. Seeking the advice of a certified financial planner


is prudent at any stage of life. A certified financial planner is a professional who is held to rigorous ethical standards and has completed extensive training and experience requirements. Quite sim- ply, a certified financial planner serves his or her clients in the management of wealth and risk for their families and businesses, and can assist the veterinarian with an individualized plan to help with budgeting, investing, planning for retirement, saving for education, and how to best manage taxes and insurance coverage through all stages of life. Minimal investable assets may range from $0 to in excess of $500,000, and these professionals typically work for a fee plus commission. The importance of having investments or savings to tide one over until disability benefits begin to be paid cannot be over- emphasized, and working with a certified financial planner will help the veterinarian stay on top of short- and long-term goals through the many changes that occur during a lifetime. With the financial house in order, the veterinarian


can now focus attention onto who will provide care for the clients’ animals. In the multi-doctor prac- tice, this is generally covered by everyone shoulder- ing a heftier load or bringing in an associate. For the solo practitioner, getting together with col- leagues and working out a plan in advance of any illness or accident is the ideal situation. Legible, accessible and accurate medical records will allow for continuity of care. Do not forget that the cur-


AAEP PROCEEDINGS  Vol. 62  2016 285


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