if there are more than two (2) physicians in the practice and decisions are made by a majority vote, there is always a chance that a majority of physicians can team up against the minority physicians. physicians should especially be concerned if the agreement allows for the physician owners of the practice to be terminated without cause upon a majority vote of the other physician owners.
physicians must also consider whether or not there will be a buy-out in the event of termination (including for retirement, death, disability, voluntary or involuntary withdrawal), as well as whether such buy-out will be deminimis or significant. in the event a physician is offered the opportunity to buy-in to an existing practice and become a partner, the physician must review the terms of the buy-in, including how much the physician is required to pay to become an owner in order to ensure that the buy-in is financially worthwhile. [2] many physicians who are owners of a practice also have an employment agreement with the practice which dictates certain terms including for instance termination and compensation.
as the health care industry changes, more and more doctors are forming partnerships or merging practice groups into larger practice groups. but just as consideration and careful planning must go into every diagnosis and treatment plan, foresight, consideration, and careful drafting are essential to a successful physician partnership or practice group merger. most often, doctors feel too busy with their practice to take the time to consult with an attorney regarding the contours of their partnership agreements. some of the most common issues the attorneys at ditommaso see are: at some point one or more of these issues will arise and not being aware of the legal consequences that stem from partnerships or mergers can lead to unnecessary expenses and can disrupt or even destroy a practice.
getting a knowledgeable attorney involved at the inception of a practice group merger or physician partnership has the added benefit of allowing the physicians to focus their time and energies on growing the practice instead of hashing out the mundane details of the agreement. having worked with numerous doctors and physician groups, they are familiar with the unique issues that arise when physicians and practice groups combine. to consult with an attorney today contact us online or give us a call at 630-333-0000. please do not include any confidential or sensitive information in a contact form, text message, or voicemail. submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.
we have outlined some key concepts that need to be addressed prior to physicians entering into partnership arrangements with other physicians. as the health care industry changes, more and more doctors are forming partnerships or merging practice groups into larger practice groups. do you know what’s in your partnership contract? poorly designed or nonexistent contracts can spell disaster for you and your practice., physician partnership models, physician partnership models, physician partnership profit sharing, medical partnership agreements, how to structure a partnership buy-in.
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