Physician Life Care Planning

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Financial and Economic Assessments are quantitative reports prepared by professional economists to calculate damages in present value.

Financial and Economic Assessments address the fundamental time value of money question, i.e. how much money is required today to underwrite expenditures or losses that will occur in the future.

Physician Life Care Planning offers two types of Financial and Economic Assessments:

  • Present Value Assessments of Life Care Plans
  • Economic Damages Reports

Excerpts from a Present Value Assessment
of a Life Care Plan
Excerpts from a Present Value Assessment of a Life Care Plan

Present Value Assessments of Life Care Plans

Life Care Plans quantify the costs of future medical necessities using “today’s prices”, i.e. the market prices of medically-related goods and
services prevailing at the time a Life Care Plan is produced. In short, Life Care Plans do not account for the time value of money.

The time value of money is the foundational concept of financial theory. It simply maintains that money today is worth more than money
tomorrow. This is true because money can earn interest.

Time value of money calculations seek to equate the present value of money (what it’s worth today) to the future value of money (what it’s
worth tomorrow), and vice versa. To accurately calculate the amount of money an injured person would require today to afford medical costs
which will occur in the future, two economic considerations must be accounted for:

  1. The impact of inflation on the prices of medically-related goods and services, and
  2. The amount of interest an injured person will be able to earn between now, and the times when his/her future expenditures are
    expected to occur.

Present Value Assessments of Life Care Plans calculate the future values of medically-related goods and services by accounting for category-
specific inflation, and they convert future values into present values using discount rates (appropriately risk-adjusted rates of return which can
be earned on an injured person’s money).

To learn more about the present value assessment of life care plans and proper present value assessment methodology click here.

Our Present Value Assessments Include:

  • Concise summary of the Life Care Plan’s base, future and present values
  • Thoroughly referenced exhibition of all inflation rates used to calculate future values
  • Thoroughly referenced presentation of discount rate selection and application
  • Complete exhibition of all financial and economic calculations
  • Thorough articulation of Assessment’s methodology

Excerpts from an Economic Damages Report Excerpts from an Economic Damages Report

Economic Damages Reports

Economic Damages Reports calculate the present value of economic damages, i.e. loss of earnings, loss of earnings capacity, and other
damages such as household (”home”) services.

Economic Damages Reports calculate, in present value terms, how much money will be required today to offset economic damages which will
occur in the future.

Our Economic Damages Reports Include:

  • Concise summary of the Present Value of Economic Damages
  • Complete, transparent, and fully referenced presentation of:
    • Work Life Expectancy
    • Growth of Earnings (Wage Inflation)
    • Life Cycle Adjustment
    • Past Wage Growth
    • Benefits
    • Life Expectancy and Full Function Life Expectancy
    • Household Services
    • Offsets to Earnings and Benefits
    • Taxes
    • Discount Rate Selection
  • Complete exhibition of all financial and economic calculations

The Highest Quality Economic Assessments Available

  • Methodology: all our financial and economic assessments are performed using clearly defined, generally accepted financial economic methodologies.
  • Transparency: all financial and economic assumptions, calculations, and variables are clearly presented.
  • Usability: PLCP’s Financial and Economic Assessments are conclusive trial ready tools which are electronically navigable and contain hyperlinked data and citations. They are iPad compatible, exhibition quality deliverables.
  • Credibility: Our financial experts and economists are senior-level professionals with decades of experience formulating financial and economic valuations. They are leading financial and economic practitioners who are committed to the highest standards of professional ethics, integrity and objectivity.

Our mission is to be the world’s highest quality provider of damages valuation services.