The Legal Side of Running a Medical Practice: Why Every Healthcare Provider Needs Experienced Business Counsel
By St. Johns Law Group
For physicians, dentists, veterinarians, chiropractors, optometrists, physical therapists, and other healthcare professionals, delivering exceptional patient care is the top priority. Yet behind every successful practice is a business that requires careful legal planning and ongoing management.
Did You Know? Attorney Douglas N. Burnett is a former Executive Attorney for a National Medical Provider with Multiple Practices and over 200 Locations
Whether you are opening your first office, expanding into additional locations, purchasing an established practice, or preparing for retirement, legal issues arise throughout the life of a healthcare business. Having experienced legal counsel can help protect your investment, reduce risk, and position your practice for long-term success.
Healthcare Providers Face More Than Medical Decisions
Healthcare practices operate in one of the most highly regulated business environments in the country. In addition to caring for patients, practice owners must navigate complex business, employment, real estate, and contractual matters.
Common legal issues include:
- Forming a professional practice
- Negotiating physician and employee contracts
- Buying or selling a medical or dental practice
- Leasing or purchasing office space
- Partnership and shareholder agreements
- Commercial real estate transactions
- Vendor and technology contracts
- Business succession planning
- Commercial disputes and litigation
- Asset protection planning
Addressing these issues proactively can save significant time and expense later.
Starting a Practice on the Right Foundation
Opening a healthcare practice involves much more than selecting an office location. Choosing the proper business structure, preparing governing documents, negotiating commercial leases, and developing ownership agreements all have lasting legal and financial consequences.
Healthcare professionals should carefully evaluate:
- The appropriate business entity
- Ownership percentages
- Management authority
- Buy-sell provisions
- Financing arrangements
- Office lease terms
- Employment agreements
- Insurance requirements
- Exit strategies
Investing in proper legal planning from the beginning often prevents costly disputes as the practice grows.
Buying or Selling a Medical Practice
For many providers, purchasing or selling a practice represents one of the largest financial transactions of their career.
Whether acquiring a solo practice or joining an established group, buyers should conduct thorough due diligence before closing.
Important considerations include:
- Practice valuation
- Financial performance
- Existing contracts
- Commercial leases
- Equipment ownership
- Employment obligations
- Restrictive covenants
- Real estate interests
- Pending litigation
- Transition planning
Likewise, sellers benefit from careful planning to maximize value while ensuring a smooth transition for employees and patients.
Physician Employment Agreements Matter
Employment agreements often contain provisions that significantly affect a provider’s future career. We can review or draft an employment agreement or Medical Service Agreement (MSA).
Before signing, healthcare professionals should understand:
- Compensation structures
- Productivity bonuses
- Benefits
- Call responsibilities
- Partnership opportunities
- Restrictive covenants
- Confidentiality obligations
- Termination rights
- Buy-in requirements
A careful legal review can identify provisions that may require clarification or negotiation.
Commercial Real Estate Is a Major Investment
Office space is often one of the largest operating expenses for a healthcare practice.
Whether leasing medical office space or purchasing a building, providers should carefully evaluate:
- Lease renewal options
- Tenant improvement allowances
- Maintenance obligations
- Assignment rights
- Expansion opportunities
- Build-out responsibilities
- Zoning considerations
- Parking requirements
- Shared operating expenses
Experienced legal counsel can help negotiate terms that support the long-term needs of the practice.
Partnership Disputes Can Threaten a Successful Practice
Disagreements between owners frequently involve:
- Profit distributions
- Decision-making authority
- Expansion plans
- Retirement
- Practice valuation
- Buyouts
- Non-compete agreements
- Fiduciary duties
Well-drafted partnership and shareholder agreements establish clear expectations and provide mechanisms for resolving disputes before they become litigation.
Planning for the Future
Many healthcare providers spend decades building a successful practice. Planning for retirement or ownership transition should begin well before the anticipated sale.
Succession planning may include:
- Buy-sell agreements
- Family succession strategies
- Sale to associates
- Practice mergers
- Estate planning
- Asset protection
- Tax planning
- Business continuity planning
Early planning helps preserve the value of the business while providing continuity for patients and employees.
Why Healthcare Providers Choose St. Johns Law Group
At St. Johns Law Group, we understand that healthcare professionals need more than occasional legal advice—they need trusted business counsel.
St. Johns Law Group represents Over 50 Physicians, Dentists and Medical Practices
Our attorneys advise physicians, dentists, medical practices, and other healthcare businesses on matters involving:
- Business formation
- Practice acquisitions and sales
- Commercial real estate
- Employment agreements
- Partnership and shareholder agreements
- Business contracts
- Commercial litigation
- Asset protection
- Estate and succession planning
Because our firm brings together attorneys with experience in business law, commercial litigation, real estate, construction, land use, tax, and estate planning, we provide comprehensive legal services tailored to the unique needs of healthcare practices.
Partner With an Experienced Healthcare and Medical Practice Attorney
Owning a successful medical practice requires sound business decisions as well as exceptional patient care. Whether you are starting a practice, purchasing an existing office, negotiating a physician employment agreement, expanding your business, or planning for retirement, experienced legal counsel can help protect your investment every step of the way.
If you own or operate a healthcare practice in St. Augustine, Jacksonville, Ponte Vedra, Palm Coast, or elsewhere in Northeast Florida, contact St. Johns Law Group to learn how our Healthcare Business Law attorneys can help your practice grow, operate efficiently, and prepare for the future.
Call 904.495.0400 or email info@sjlawgroup.com to schedule a consultation.