Forming Physician Multispecialty Group Practices: Key Legal Considerations

Physician multispecialty group practices have grown in popularity due to changes in the law, reimbursement pressures and capital constraints. Because forming multispecialty groups are complex transactions involving significant risk, careful planning and execution are critical.

When structuring multispecialty group practices, counsel to healthcare providers must carefully consider tax and benefits issues, the implications of adding physicians through mergers and acquisitions, and Stark law compliance requirements.

Listen as our authoritative panel of healthcare attorneys explains essential legal considerations when forming multispecialty group practices, including applicable laws and regulations. The panel will discuss best practices when selecting the appropriate legal entity for the business, negotiating deal terms and employment contracts, and establishing compensation models that comply with Stark law.

1. Group formation
   1. Selecting the appropriate legal entity
   2. Tax issues
   3. Benefits issues
2. Adding physicians through mergers and acquisitions
   1. Determining the purchase price
   2. Deal terms
   3. Physician employment contract issues
   4. Promoting associates to partners
3. Stark law and compensation models: compensation for professional services
   1. Compensation for ancillary services
   2. Use of care centers and practice divisions
4. Hospital, private equity or other non-physician participation
   1. Corporate practice of medicine and fee splitting
   2. Management arrangements

The panel will review these and other relevant questions:

• What are the principal legal and business concerns for physicians considering forming a multispecialty group practice?
• What considerations should healthcare counsel weigh when selecting the appropriate legal entity for the business?
• What compensation models have been most attractive or successful for group practices negotiating employment with physicians?
• What particular concerns arise when there is a hospital, private equity or other non-physician participation in the group structure?