If you intend to break off from an existing medical practice or health care organization and form a new physicians practice, you should give serious consideration to a Professional Corporation and MSO for a new medical practice or healthcare business.
Why Should You Consider the California Professional Corporation or PC
The California Professional Corporation or PC provides advantages to licensed professionals such as doctors, dentists, architects and engineers. The primary advantages of a Professional Corporation (PC) are the protections provided to owners of the Professional Corporation and advantages in the ability to offer and deduct many employment benefits.
Your options are basically a sole proprietorship, a partnership or a professional corporation. A sole proprietor is personally responsible and liable for all debts and liabilities associated with the entity. Partners are not only liable for the debts or liabilities of the partnership, they are “jointly and severally” liable. This means if one of the partners has more assets a creditor can target that single partner instead of pursuing each partner for their fair share of the debt or liability.
For example, owners of the Professional Corporation are protected from the liability, malpractice or negligence of another co-owner or partner in the practice. If one physician is sued for individual malpractice, the other doctors in the PC are not responsible for any associated damages or liabilities. Physicians and licensed professionals are able to contribute more to retirement vehicles such as a 401(k) than in traditional forms of business entities such as a corporation or LLC, and may provide and deduct high ticket benefits such as health care and some professional fees.
Consider a Professional Corporation and MSO for a New Medical Practice in San Diego and Southern California
Have you considered a Professional Corporation and MSO for a new medical practice in San Diego and Southern California? A Management Services Organization or MSO can be a perfect complement to your Professional Corporation. Consider the MSO as an outside business that takes all of the “business” related functions off of your plate so that you can focus upon delivering exceptional healthcare.
The MSO can provide everything from facilities to computer hardware and software and furnishings for your offices and treatment areas. The MSO can handle appointment scheduling, billing and even collections as well as tax preparation and the negotiation of contracts with vendors and non-professional workers. You can attract outside investment into an MSO that provides the foundation to grow and expand your operations.
There are a few risks which must be carefully addressed but your medical business attorney from the Watkins Firm has more than 40 years of experience serving the San Diego and Southern California healthcare community. We discuss the issues with you and ensure corporate documents and day-to-day operations remain firmly within the law while providing additional efficiencies to your practice or medical business.
The attorneys at the Watkins Firm have more than four decades of experience in medical business and the healthcare industry as well as the laws associated with forming, owning, operating and ultimately selling a health care related company. We help you to maintain compliance with a host of federal, state and local laws and regulatory issues. We invite you draw on our deep experience and knowledge in the formation of your new Professional Corporation and MSO for a new medical practice or healthcare business and review our Podcast Episode 30 – Management Services Organizations or MSOs as well as the strong recommendations of former clients and contact the Watkins Firm or call us today for a complimentary and substantive consultation at 858-535-1511.
