Medical Practice Management
Aug 06

Ancillary entities: Be sure to update buy-in/payout agreements

You should make a habit of reviewing employment and shareholder agreements in your group medical practice every year. The same holds true for any ancillary entities. It’s critical to ask these questions to update your buy-in and payout agreements:

  • Have we covered all economic issues of the ancillary service/business?
  • Do we have mechanisms in place for determining fair market value of all those assets/services?
  • Do we need to amend agreements now based on questions or new circumstances that arose in the past year?
  • Do all our agreements provide for succession and maximize tax advantages for the practice corporation and any related entities?

And, of course, always get appropriate legal and financial (tax) counsel in your reviews.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →