The practice managers’ guide to co-ownership agreements, partnerships and associateships has been developed to assist both doctors and practice managers with understanding the different legal structures for sharing ownership when establishing the practice. It contains numerous practical tips and advice, and identifies the main issues connected to the onus of responsibility for liability within the relationship, in order to assist with successful running the practice. It has been identified as an area where practice managers and doctors alike have a keen interest, and a lot of important information is contained in the guide.
Any practice not being run as a solo entity is known as a group practice, with more than one owner. Many medical practices are set up using partnerships or associateships. When there is more than one owner, the practice needs to have a co-ownership agreement. As the number of owners in a practice increases, so does the scope for interpersonal disputes. Therefore, the bigger the group of owners, the greater the need for co-ownership agreements and other formal processes, to regulate behaviour and ensure the interests of each member are protected.
This guide explains the benefits of co-ownership agreements, what a partnership is, what an associateship is, and how they differ from each other. It explains what a practice manager needs to do to ensure the correct legal consequences occur. Topics included in this guide include:
- Explanation of co-ownership agreements;
- Tax returns;
- Profit sharing arrangements;