A substantial portion ot the typical physician's asset base consists of his or her interest in one or more retirement plans. Even if a physician is faced with no immediate threat of personal liability, the potential is a looming presence in any physician's life. Unfortunately, claims for malpractice liability in excess of a physician's coverage limits are a reality in today's litigious environment. Many physicians are also involved in other business ventures with potential for personal liability. Inconsistencies between federal and state law have led to very different levels of asset protection, depending on the type of retirement plan vehicle in which the assets have been held.
Recent legislation brings consistency in Pennsylvania.
Mr. Barshak subsequently filed for bankruptcy. The Bankruptcy Court agreed. The Barshak decision has been a disturbing presence in the lives of many physicians, particularly in the face of the realities of managed care. In recent years, many physician practices have been purchased by hospitals and other institutional providers. The disposition of the physician's qualified plan following the sale of the practice has presented a difficult dilemma.