Are you doing a practical partnership? Are you currently in a partnership without an active buy/sell agreement? Is your current purchase/sale contract more than one year old and therefore needs to be verified? Call us today to make an appointment for a non-binding counselling interview. I do not give legal advice on the amount of the purchase price; This is a task for practical experts. My work begins with the structuring of the payment of the purchase price. A buyer can pay the price with one or a combination of the following: if he is considering a buy-in or partnership when setting up a group medical practice, doctors must be equipped with knowledge of the specific problems in purchase/sale contracts so that such an agreement can be properly elaborated when the group is formed. This important planning step can potentially save between $10 and $1,000 and a lot of unnecessary stress on the street. At Tinsley Medical Practice Brokers, buy-in and partnership planning is an invaluable part of our services. I will record the contingencies for the end. An eventuality allows the buyer to cancel the agreement in the absence of a necessary event. For example, the buyer might want a contingency for a loan to finance the purchase or for a new office lease agreement with the seller`s owner.
Contingencies are the hardest thing to negotiate in an agreement. Like deposits, contingencies in real estate transactions are the norm, but less so for the purchase of a medical practice. Purchase/sale contracts need to be regularly reviewed and updated to reflect ongoing changes in the healthcare sector since the last revision. Any group practice should have its agreement reviewed at least once a year, usually at the end of the year of activity or calendar year. Healthcare system reform, persistent attacks on service reimbursement, the introduction of the resource-based relative value system (RBRVS) by other payers, and Medicare discounts are just a few changes affecting purchase/sale contracts. These problems have the ability to directly influence the value of a property stake in a medical practice. The Buy-Sell should also have contained provisions both for the temporary obstruction of the partner and for a capacity buyback that was needed here. If they had been better advised and if they had done so, all parties would have been better off.
The incumbent would have immediately received a little more money and the younger doctors would have been able to keep their savings and equity in their building, while avoiding the flow of out-of-pocket payments needed to stop their activities. Dispute resolution: Even with a strong buy-sell agreement, disagreements can arise. It`s a good idea to review your agreement every year to make sure it still meets everyone`s expectations and understanding of what the practice is worth. . . .