How To Perfect The Purchase Agreement for Physician Ownership

When a physician becomes part-owner of an established medical practice, many documents can be used to evidence the purchase. The purchase agreement is one of these documents and should include the physician’s ownership percentage, purchase price, and payment terms. This document usually provides representations and warranties by the seller and the practice, in order to disclose pertinent information about the practice being bought into, such as:

(a) assets and liabilities of the medical practice;
(b) current standing with the state’s medical board;
(c) current standing with the IRS and other tax entities;
(d) all exhibited documents reflect the medical practice’s history;
(e) all billing has been done in compliance with CMS and other law; and
(f) the purchase agreement does not violate any other agreements which the medical practice may be bound.

Don’t let your enthusiasm for “arriving” in your medical career interfere with proper procedure.