Hi Class,
Here it is:
Blog assignment - Go to the NCMIC website. Log on with the
username “college” and the password “NCMIC”.
Click on the “case studies/articles” selection on the left side of the
screen. Next, look under the “summer
2011”articles. Select and read: Independent
Contractors… Minimizing Your Risks
For the blog, discuss how the perceptions of the patient and public are important in minimizing risk if you are an independent contractor. Your discussion should contain at least 3 key points. The 3rd person in each group will post a summary of the discussion on the blog. This assignment is worth 2 points and is due Monday, December 10, 2012.
For the blog, discuss how the perceptions of the patient and public are important in minimizing risk if you are an independent contractor. Your discussion should contain at least 3 key points. The 3rd person in each group will post a summary of the discussion on the blog. This assignment is worth 2 points and is due Monday, December 10, 2012.
Thanks,
Dr. Frost
The IRS and Judiciary take into account the public perception of the relationship between doctors, regardless of the claimed legal relationship. This means that if an employee relationship is fraudulently represented as an independent contractorship, the employer can be held legally responsible for back employment taxes and penalties. The employer can also be deemed to be negligent in the case of a lawsuit involving their "independent contractor" just as if they were a legal employee. In order to avoid this, the contractor and the contractee should both make their status clearly known to their respective patients, as well as in any public advertisements.
ReplyDeleteJoshua Leeder and Micheal Robinson
Jesse Fox is also a part of this group
DeleteA doctor and his/her practice can be held vicariously liable for the actions of an independent contractor if they are not careful about advertising and perception in the office. In this instance patient and public perception is the determinate for employer/employee relationship no matter what the IRS status indicates. For the status of an independent contractor to stay an independent contractor and not become an employee it is important for them to operate completely on their own. They must have the ability to determine their own practice procedures and set their own hours. NCMIC suggests having a sign in the lobby, have the status on the intake forms and be specific in advertising as good ideas for helping establish who is an indepedent contractor in the eye's of the patients. Having clear status difference between indepedent contractors and employees helps avoid gray areas and situations that could potentially hold you liable for social security taxes, unemployment taxes, employee benefits, compensation insurance, and negligent lawsuits.
ReplyDeleteMatthew Morse (Dave S., Collin S., Ryan R., and Tucker B.)
Public and patient perception is the determinant factor for employee/employer relationship regardless of their IRS status. Therefore NCMIC emphasizes displaying a sign in lobby, include a statement on the intake form by indicating which doctors are independent, and be specific in advertising on website and signage in how doctors represent in practice. Also each operation needs to be controlled independently, such as office hours, practice procedures and patient care. If some staff is working for both doctors, each staff needs to understand independent contractor situation to assist patients and doctors. As a risk management, it is important to make sure independent contractor is adequately insured for protection.
ReplyDeleteHiro Horikawa(John Rockas, Vinicius Francio)
It is important to distinguish the roles of each participant in your office so that you are not held accountable for any undesirable actions taking place within the practice. The public needs to be aware if there is an independant contractor within the office so that he or she is not looked at as an associate of the doctor. Any action taken place by an independant contractor can make the owner of a practice held accountable if the appropriate measures aren't taken place to ensure that the public knows that he/she is separate from the practice. This can be done by signage in the lobby, specificity on the intake forms, as well as any advertisements in the community. Also, independant contractors differenciate from employers by the fact that they must control every aspect of their practice including hours, payments, procedures, etc. If that does not exist, this can increase the potential risks in the practice.
ReplyDeleteLaura Peterson (Meet Patel, Luke Pernsteiner, Eric Bowman, Charlie?)
In order to avoid possible IRS complications or being held legally responsible for your independent contractor you must be sure to take the proper steps to help eliminate the perception of an associated or employee/ employer relationship. As the building or office owner there are a few ways to make sure the public understands the other doctor/ doctors are not associates with your current practice. Having a sign in the waiting room or lobby explaining which doctor is with which practice. Separate intake forms for each doctor and different advertising also, allowing the other doctor to make his or her own business hours and management there practice in their own manner. Finally, making sure the independent contractor is adequately self insured to help protect you in the case of malpractice suit against the independent contractor.
ReplyDeleteBrad Keys (Jerome M, Kali E, Lionel B, Tor B)
A doctor and their practice can both be held accountable for the actions of an independent contractor. Therefore, it is absolutely necessary to distinguish the independent contractor separate from the office itself (otherwise the doctor may get sued as well in a lawsuit against the contractor if one were to take place). NICMIC offers some valuable tips on how to do so. One good idea is to let the independent contractor "run the show" (to an extent). For example, allow for them to run their own hours and determine their own practice procedures. Therefore it shows independence from the office itself. To display to the public that the contractor is separate from the office, it would be valuable to display the sign in the lobby which states that this doctor is an independent contractor (sometimes best to just make it obvious). The doctor can also state in the patient intake forms that certain doctors in the office are independent contractors. It would also be in the doctor's best interest to state the presence of independent contractors on the company website and all other forms of advertisement. Therefore the public can be full aware that an independent contractor works in the office and therefore the doctor can avoid any legal issues.
ReplyDeleteAlex B, Dee K, Kurt S
A commonly misunderstood or abused part of chiropractic practices is the issue of whether additional doctors within a clinic are employees or independent contractors. This is not an especially difficult concept to understand. An independent contractor runs a practice within a practice. They set their own hours, treat patients according to how they see fit, and manage their own finances. They just do these things while renting space within an existing practice.
ReplyDeleteThere happen to be several benefits to "confusing" these simple principles when additional doctors are added to a practice. - The owner "does not have to pay" social security taxes, unemployment taxes, or workers compensation taxes.
This is a very risky business strategy for several reasons. The IRS can look into, and collect on all unpaid taxes in addition to fines for inadequate workers comp insurance. Those are small compared to the possibility of being involved in a malpractice lawsuit for what an "independent contractor" did or did not do. This is why it is important to clearly separate additional doctors within a practice as being employees or independent. This can be done by signs within the waiting room clearly identifying additional doctors, and forms that clearly identify additional doctors.
John Crouse (Nicole J. Emily S. Kelly L. Jordan H)
Working for a practice as an independent contractor takes on different meanings than being an employee or associate. Practice owners that take on independent contracotrs need to make it clearly known that these workers are not affiliated with the other practice, they are simply renting out the space. If lines blur then the IRS can look into the relationship between the two and may determine that there is an actual employee/employer relationship. This relationship makes the owner responsible to pay social security taxes, unemployment tax, work compensation insurance and employee benefits to the doctor that claimed to be an "independent contractor." With that liability the practice owners need to be cautious as to how they are functioning with this outside doctor, especially in the public eye.
ReplyDeleteIn order for the independent contractor to be separate from the practice they must set their own hours, use their own methods of practicing, and have separate insurance. Advertising separately, displaying signs with it clearly stating the separation of work, and having intake forms and separate record keeping all need to take place to stay independent. Due to the negative consequences if the relationship isn't truly an independent contractor, practice owners should make the distinction clear to everyone involved from the workers to the patients.
Jordan L, Kasey R, Shannon S, Christa S
Independent contractors by law must be able to set their own hours, determine their own practice procedures and operate independently of the established doctor they work alongside. In other words they should operate their own separate practice within an established practice. If patients do not have a clear understanding the arrangement, liability can fall onto the established doctor in the case of a lawsuit.
ReplyDeleteSimple steps can be utilized to reduce the risk of being held liable in such cases. First it should be clearly stated while advertising in the media that the two doctors are separate practitioners so that patients don’t assume the two are a part of the same practice. It should also be stated somewhere in the front office that the two practitioners are a separate entity. This may be done with a picture of the practicing doctors and a statement acknowledging the two as separate practitioners. This tells the patient right from their first visit that the two doctors practice separately within the same practice. Also having a patient sign an intake form acknowledging that the two doctors practice separately reinforces the patient’s perception of the practitioner’s arrangement. This signed form could also help remove liability from the established doctor or independent contractor in the event of a malpractice lawsuit against one or the other.
Patient perception is very important when it comes to malpractice suits. When following these three strategies, patients should be fully aware of the agreement between the doctors and this should place the liability on the doctor at fault in case of a lawsuit. If these strategies are not taken seriously both doctors may be liable and found guilty of malpractice.
Richard Kingsbury (Justin C., Melissa A., Jesse B., Scott T.)
In order to minimize your risk associated with renting out space to an Independent Contractor. First, you must minimize the potentials for patients to perceive the two distinct and separate businesses as the same. To do this it should be visible on the front door, advertising, and other areas. Stating that the Independent Contractor is such and in no way an employee or associate of your practice. It could be put into writing and have patient’s sign that they understand that your business and that of the Independent Contractor are completely separate businesses. Second, the Independent Contractor should pay standard rental fees for the use of office space and office employee’s. In which payments should be explained and documented. Third, the Independent Contractor should set their own hours of operation and control other aspects of their operation as an Independent Business would.
ReplyDeleteCharles Paxton Schofield (Tomo M., Tara R., Calihan D., Alyssa K.)
It is important for a doctor to keep himself or herself a distinct entity of the independent contractor in the eyes of the patients and the public. This helps to minimize the risk of malpractice allegations due to the actions of the independent contractor. If the patient does not see this distinction, it could mean that the independent contractor was not an employee of the doctor, and ultimately, the court could deem the doctor responsible for the actions of the independent contractor. Also, if the IRS does not see a distinction, the doctor could be at risk of responsibility for not having appropriate worker’s compensation coverage as well as uncollected employment taxes. Extra time and paperwork will be necessary in order to change the practice structure and to make sure both the doctor’s and the independent contractor’s businesses are set up according to the correct legal structure. Lastly, it is important to keep a distinct identity from the independent contractor on the issue of inadequate insurance coverage. If the independent contractor doesn’t have proper insurance coverage, it could reflect on the doctor, and both the doctor and the independent contractor could be drawn into a lawsuit. A few ways to make sure that both doctors are seen distinctly by the public and the patients is to post signs in the offices, make a note of the situation on the intake forms, and to keep the advertising for both office clearly and distinctly separate.
ReplyDeleteHolly Crawford (Nina P., Rhys E., Derek P.)
The doctor/independent contractor relationship is extremely tricky, due to the fact thee are so many different variables that could confuse the relationship with an associate or employee. With D.C practice owners trying to hire independent contractors to gain the financial benefits of Social Security taxes, unemployment taxes, workers’ compensation insurance and employee benefits. These actions can be held accountable on the owner if the IRS determines that the independent contractor is an employee, but even worse is the owner can be held liable for the negligent actions of the independent contractor and this could have legal repercussions. Because many patient perceive that the independent contractor is a employee of the office and proper precautions weren't taken to give the clear perception that the independent contractor is completely separate from the practice. There are a few steps that have been said to preform to inform the patients the difference between independent contractors and associate employees. The first of these is to display a sign in the office waiting rooms and the second of which is to have it on the intake form. I believe that it would also be helpful for the independent contractor to state that he is of his own separate being from the owners practice to each new patient that he encounters. Finally I believe that the independent contractor should have separate and distinct hours that will be marked and displayed for the patients to see.
ReplyDeleteBeing an Independent contractor means you have to do your own finances and advertising that makes you distinctively different from the owner that you may be working with. The IRS has to see a distinction between you and any other chiropractors that maybe be in the same office as you. If there are things in the office that could deem you an employee of the chiropractor that owns the office you may put the whole office in jeopordy! The doctor that owns the office could be held responsible for workers compensation coverage also as well as uncollected employment taxes. If you want to be a independent contractor you need to take the time to work on your own advertising, making your own schedule, and make sure that your patients know that you are an independent contractor. Most importantly if your not sure if you have met all the requirements to be an independent contractor, contact someone who can help like a tax and legal advisor. Make sure that everything is comparable to each doctor that works in the office.
ReplyDeleteTj Harpham, Eric Dickerson, Ryan Madigan, Andrew wiehler
DeleteThe document highlighted some pertinent information about proper identification of doctors who work at a Chiropractic office either as employees or Independent Chiropractors. It has become a practice that some Chiropractic business owners tend to purposefully portray their employed DC’s as independent chiropractors in documentation, to patients and the rest of the public, in an effort to rob Uncle Sam from paying their fair share of taxes which include employer’s social security tax, unemployment tax, as well as compensation insurance and other relative employee benefits like bonus pay, vacation pay, etc. This act is purposely misleading and negligent. This act can have some risky repercussions if discovered in the future. The owner of the Chiropractic office will more than likely have to pay all back taxes and insurance payments.
ReplyDeleteThere are other situations whereby the misrepresentation of the practicing DC as an employee or an independent contractor can have serious consequences in the event of a malpractice lawsuit. How one’s patients perceive the practicing DC's status in the Chiropractor’s office is crucial to avoiding this dilemma. In the event of an unfortunate malpractice lawsuit against the practicing DC, the plaintiff patient may be of the impression that the DC is an actual employee of the company and not an independent contractor. In this case, if the judge also finds that the DC and the practice owner presents as an employer and employee, then the practice owner will be held liable for any wrongdoings performed by the independent contractor.
Steps can be taken to ensure that independent contractors are correctly portrayed to the viewing public. Proper identification or listing of doctors as independent chiropractors on patient documentation, office advertisements (signs or biographies of DC's), website and newspaper advertisements. It's greatly necessary that the independent contractor has proper, adequate and comparable insurance to that of the practice owner's. It's also imperative to ensure that proper identification of independent contractor is done with IRS.
A key thing to note is that, if a practice owner will be contracting independent contractors, the practice must be set up in a legally accurate manner. An independent contractor should be able to set his own hours, operate separately and apart from the practice owner, use their own techniques and not have to adhere to the techniques, practices of the owner. If the IRS somehow deems the independent contractor to be an actual employee, then the practice owner must make great strides to have that misinterpretation corrected. Paperwork must be filed with the Secretary of State to change the structure of the company from "sole proprietor" to a "corporation".
Jordan Ball, Anthony Dexter, Tamara Blackmon, Yoon Sun Kim, Sangwoo Kim
In the event of a malpractice suit the perceptions of the public matter when dealing with an Independent Contractor. If the public perception is that the individual classified as an independent contractor of the practice appears to be just another employee, this can change how the practice looks in the eye of the court. This relationship would be just another employee/employer relationship. It is very important that the Independent Contractor is seen as a separate entity. Ways to go about doing this are displaying this information on a visible sign in the office as well as clearly stating this information on the patient intake forms. Also, make sure you are not setting the hours or putting any requirements on the independent contractor unless you want to be seen as an employer.
ReplyDeleteAnother protection measure is to make sure the independent contractor that you are in contract with is insured similar to the way in which you yourself are insured. In addition to this, obtain the independent contractors certificate of insurance and have that entity added as an “additional insured” on the independent contactor’s policy
By following a few simple precautions, you can better protect your practice from a malpractice suit from being associated to you because of what an independent contractor may have done.
Mark (Jay, Felicia, Daniel, Britni)
It is very important to minimize ones risks if they are an independent contractor to the public and the patients they provide care for. First, being an independent contractor would be feasible to make sure one is properly insured to avoided risk management steps. According to the IRS it would be important to also fill out a determination of worker status for purpose of federal employment taxes and income taxes withholding. Second key would be to make sure all ones patients know they are an independent contractor by displaying a sign in the office and being very specific with advertising. Lastly, it is so important that patients know that a doctor is an independent contractor because the practice will be held liable for uncollected employment taxes and benefits, one could also receive a penalty for not having adequate worker’s compensation coverage.
ReplyDeleteErin cebulski, Diana Martinez, simone flesik, laykn crisp, Cierra
The clinic should classify and interpret about the difference between independent contractors and owner by law.
ReplyDeleteThey also should reduce their patient misunderstanding of doctor’s statue in the office when they involved malpractice and lawsuit.
They must identify the independent contractor to the patient and make them aware that the business is run separately. Independent contractor should have indicating sign in lobby representing independent contractor identity and they also need to separate representation on advertising, website and signage. Moreover, need to represent individually clinic open and close hours and days.
Ashley C, Liz G, Ryan D, Jarod M, MJ
When it comes to independent contractors, it is absolutely pertinent that you are not only an independent contractor on paper, but in the perceptions of your patients and the public. Obviously, you would want to go through all the legal routes with the IRS, but it is easy to see how public perception can be overlooked as a risk.
ReplyDeleteFirstly, it is important to display independence through formal routes with patients. The article we were assigned to read highlighted these clearly. From signs in the lobby indicating that (although Dr. so-and-so is working in the same building as Dr. what’s-his-name) one doctor is independent from the other, to conformations on intake forms, this information needs to be shared noticeably. It is easy to see how a patient may get confused of two doctor’s professional relationship with one another if they are working in the same building.
Also important is acting out what you display on paper, notices, and advertising. To be a true independent contractor, you must set your own hours, have your own forms, and generally act truly independent as a doctor in your practice. Letting practice owners determine anything at all about your practice sends a message to patients that you are closer associated than you truly are. They may easily assume that you are an associate or even a business partner if you do not maintain the same presentation of segregation to your patients in your practice as you do on paper.
Lastly, it is important to remember that advertising can play a role in perceptions as well. Once again, you do not want to give the public the wrong perception that you are in an employee/employer contract with your independent contractor.
If these perceptions are skewed toward more of an employee/employer relationship in your paperwork, advertising, and actions you can be liable for actions that were not your own.
Brandi (Wendy, Jill, Cristine)