Starting a medical practice in San Diego is actually quite legally complex, and the medical business attorneys at the Watkins Firm will contribute almost four decades of experience to ensure a successful startup. The Watkins Firm has developed a strong relationship with the San Diego and Southern California medical and healthcare business community. We provide sound legal and business counsel and proven strategies to help your practice to thrive in this competitive and challenging environment.
The California Professional Corporation
Usually, a medical practice requires the establishment of a particular type of corporate entity known as a “Professional Corporation” or PC. The PC provides additional protections to physicians that are not available in classic LLC or Corporate entities. The California Professional Corporation provides extended provisions and deductions for benefits and retirement contributions over other forms of incorporation.
The Professional Corporation protects the owners of the practice from individual liabilities or claims that arise against one of the other doctors in the practice. For example, a malpractice lawsuit against one of the doctors in the practice does not expose the other owners to liability if the issues in question relate exclusively to the conduct of the individual practitioner. The PC allows your practice to deduct important expenses such as healthcare insurance, malpractice and liability coverage and other licensing and business related costs. Contributions to retirement vehicles such as a 401(k) are handled differently in a PC, and are much more advantageous than other business entities allow.
Management Service Organization or MSO
A Management Service Organization or MSO is a powerful entity to consider in a healthcare environment. The MSO still requires majority ownership and control by a licensed California healthcare professional but provides a way to support the medical practice or healthcare business with valuable products and services. The goal of an MSO is usually to remove many of the non-medical business distractions to allow medical professionals to focus upon the delivery of exceptional medical care.
The MSO can own and/or manage facilities, hardware and software networks and backup services, billing, accounting and taxes, as well as the sales and distribution of any product of the entity it serves. There are risks to be mitigated and your Management Service Organization must be carefully crafted and managed to preserve separation between corporate and medical services. However, the MSO has become a valuable tool for increasing profitability while improving the quality of medical services and the patient experience.
The Right Attorney When You Are Starting a Medical Practice in San Diego
If you are considering starting a medical practice in San Diego or Southern California we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
The Watkins Firm can help your practice with every aspect of the startup including regulatory compliance, entity formation, medical professional employment agreements, policies and procedures and HR related documentation and support. The Watkins Firm has deep experience with the business and legal aspects of starting a medical practice.
