I’ll never forget a doctor who I recruited to a practice who was frustrated by how much the practice paid in rent and, more so, how much his share was! There are so many expenses to consider such as staff salaries, computer expenses, benefits, furniture, equipment and insurances.  Therefore, it’s important to get all the expenses outlined in the partnership agreement.

As it’s a partnership agreement, it should include information about how the partnership works such as how many shares you’ll receive.  All the other terms of partnership should be considered such as how the practice is run.  You need to get all the answers to the following questions and more and they should be included in the agreement.  Which decisions require a majority vote?  Who has check writing authority?  How are partners added or dismissed?  How would a merger request be handled?

The partnership agreement should also spell out the financials of the partnership.  Answers to these questions and more should be in the agreement.  How much you would receive if the practice dissolves?  If you leave or when you retire, how much you will receive?  Typically, the payment is based on the shares you have and the value of those shares, e.g. the practice’s tangible assets like furniture and the intangible assets like accounts receivable and debt.

Taken from https://www.physicianspractice.com/employment/understanding-physician-employment-and-partnership-agreements/page/0/1

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