Legal Considerations for Physicians and Physician Practices

February 15, 2008

1. CHOICE OF ENTITY:

1. Is a professional corporation still worthwhile?
2. Remaining tax advantages.
3. LLC - Recent surge in use.
4. Practical considerations.
5. Cost factors.
6. Group practice considerations.
7. Subchapter S election.

2. EMPLOYMENT AGREEMENTS:

1. Basic salary and fringe benefits.
2. Incentive compensation arrangements.
3. Vacation and work schedules.
4. Restrictive covenants.

3. LONG RANGE CONSIDERATIONS:

1. Buy-in.

1. When?
2. How is practice valued?
3. How is purchase structured from tax standpoint?
4. What obligations are incurred to existing doctors?
5. What is history of practice regarding prior associates?

2. Purchase of practices.

1. How to value.
2. How to structure for tax purposes.

4. OFFICE LEASE(S):

1. Length of term.
2. Renewal options.
3. Who pays for what?

1. Utilities.
2. Taxes, insurance, and other operating costs of landlord.
3. Common area charges.
4. Escalation clause.
5. Default provision.
6. Termination on death or disability.
7. Status of current tenants.

5. RETIREMENT PLAN(S):

1. Why start now?
2. What types are available?

1. Money Purchase.
2. Profit Sharing.
3. 401(k).
4. Defined Benefit.
5. Target Benefit.
6. Age Based Profit Sharing.
7. Cross Tested/New Comparability.

3. Employee costs.
4. Use of prototype.
5. Designation of death beneficiary.
6. Life insurance planning.

6. JOINT VENTURING:

1. Fraud and abuse issues.
2. STARK legislation.
3. State laws impacting fee-splitting.

7. CONTRACTING WITH HMOs:

1. Check with other physicians regarding doing business with the entity.
2. How much of your money is at risk?
3. The contracts are not all the same! Read and understand:

1. How much you will be paid.
2. Can you bill as a specialist.
3. Is board certification required?

8. ASSET PROTECTION PLANNING:

1. Malpractice concerns.
2. Spouse owned assets.
3. Retirement plans.
4. Insurance.
5. Joint Ownership.
6. Family partnerships and trusts.

9. MALPRACTICE CONSIDERATIONS:

1. How to minimize risk.
2. What to do when the process server comes.
3. Need for personal representation.