Think Before You Jump: The Many Benefits of a Group Practice AgreementPDF
Andrew Selesnick's article, "Think Before You Jump: The Many Benefits of a Group Practice Agreement," was published in the September 2016 issue of Group Practice Journal.
From the article...
"Medical professionals who operate a private practice face an array of legal issues. Perhaps none are as potentially significant as the formation and governance of a partnership or professional corporation. Crafting a thoughtful partnership or shareholder agreement requires taking into account key issues such as compensation, buyout obligations, and restrictive covenants. Without a written agreement, many physicians are left wondering what to do when (not if) a partner or shareholder leaves, or is asked to leave. A thorough agreement can ensure smooth operations when the time arrives for a partner or shareholder to exit. Conversely, a haphazard agreement will likely lead to costly and time-consuming disputes amongst partners or shareholders.
A practice group may yield increased referrals, greater ability to offer ancillary services, enhanced administrative efficiency, and reduced on-call time, among other benefits. But, how much capital will you be expected to contribute? What happens to the business if your partner or shareholder decides to leave or becomes disabled? What will your shares be worth when you retire? These are just a few of the questions you should think about early on in order to build a successful, long-lasting group. In order to lay a strong foundation for your practice group, think about it in three stages: formation, governance, and the event of a partner or shareholder exit."
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