For Physicians

Mission Statement

PSoM intends on ending the constant ebb and flow of employed physicians and to restore both quality and, especially, continuity of care for the people of Maine. PSoM does so through a cost-saving care model that reestablishes sorely needed autonomy and self-determination in the lives of its physicians for the benefit of all Mainers.

What is PSoM and what makes it so special?

PSoM looks to become a consortium of the highest-quality independent physicians who, along with their staff, own and control the care delivery model and day to day business aspects of the practice. It is a consortium where the surgeon or doctor him or herself is given the autonomy to do what is right by patients without administrative/employer interference or regard for facility-centered billing practices.

How is PSoM positioned to offer this haven for independent minded physicians?

First, many years of out-of-network billing and hard-fought negotiations with insurance companies have led to PSoM

s favorable contracts that value quality care over just more expensive care as seen in hospital-based practices where facility billing often exceeds that of bill for the actual care. The reimbursement from these contracts makes private practice survivable again, even while leaving some revenue to add value to the collectively-owned PSoM enterprise.

Secondly, PSoM is structured as an employee stock ownership plan (or ESOP) and, therefore, is a tax-exempt entity which is allowed to use these tax savings to generate retirement plans for stock-vested (3 years to vestment) staff members and an exit plan for retiring physicians. The ESOP structure tends to engender a sense of ownership and responsibility within the staff, reducing turnover and the re-training burden. While maintaining incentives for individual productivity, there is collective bargaining power and collective value growth that is realized by all.

How does it work for a physician?

First, stocks can be awarded at the start of PSoM membership and they are always awarded yearly, based on the salary level of the employee. Stocks are

vested after three years for all employees. Every year the PSoM is evaluated by a third-party company and stock values are readjusted.

PSoM Physicians are asked to pick one of three tracts, depending on their anticipated career lengths and their own financial needs. Tract one has no upfront stock award but provides the highest percentage of revenue to be taken as ordinary income. Tract three has the largest initial stock award and the lowest percentage of revenue to be taken as ordinary income, leaving the most in the ESOP to bolster its value. So, Tract one is probably best for those nearing retirement or who have the highest liquidity need, and Tract three is probably best for those looking for a more handsome retirement with significant tax-savings. Tract two is, as you might expect, between the two.

PSoM is specifically designed to also ensure that the physicians themselves may tailor their practices to accommodate family commitments and life changes like childbirth, or a family tragedy. This change from the hospital-employment model is paramount to ensuring that we not only stay in one place, but that we are again in a good state of mind to deliver exemplary care. Ultimately, PSoM, among other aspirations, is designed to help reverse the growing mental health crisis among physicians.