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Use this checklist during interviews with practices in which you are considering a partnership or space-sharing agreement. By covering all the bases up front, you will do much to avoid unnecessary conflict down the road, advises management consultant Keith Borglum. This checklist is adapted from his book, “Medical Practice Forms,” available from McGraw Hill at (877) 833-5524.

Compatibility

·       Reference checks both ways

Financial

·       Division of expenses

·       Basic formula

·       Subsidies, deferrals, security

·       Hospital financial assistance and forgiveness

·       Compensation to doctor for administration

·       Formula for shared purchases in the future

·       Excluded income or expenses

·       When paid, reserve, deposit

·       Disability, death obligations, and practice purchase rights

·       Equity balancing

·       Document equity contributions ongoing

·       Buy-in/payout formula

·       Compensation for call coverage

·       Non-member plans

·       Linked entity retirement plan issues

·       Sublet full services

Government and Decision-Making

·       Structure

·       Length/duration

·       Minority rights

·       Disagreement/arbitration

·       Reporting/meetings

·       Relatives in the practice

·       Management responsibilities

·       Restrictive covenants

Systems

·       Access to office and hours

·       Access to personal space

Personnel

·       Handbook

·       Needs

·       Job descriptions

·       Supervisor behavior and risks

·       Call/privileges

·       Patient distribution

·       Phone numbers

·       Fee schedules

·       Malpractice insurance

·       Training schedule for new doctors in office systems

 

Article from: Life in Medicine, September 1995 adapted and reprinted with permission