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Considerations for Healthcare Business for Medical Practices and Medical Businesses in Texas

Posted by Doris Dike | Jul 15, 2022 | 0 Comments

Many compliance, legal, business, and medical considerations must be made by physician offices and other healthcare organizations. Many of these problems are related. An experienced healthcare attorney can help you navigate this maze of difficult choices.

Health practices may need legal counsel in the following areas:

  • Medical Practice's Business Structure. The employment of a corporation, partnership, or sole proprietorship as a business form is subject to federal and state rules that specify when, if, and how it may be done. Ownership, management, and succession difficulties are also governed by the structure decision. Medical corporations are generally required for usage in medical practices. A larger variety of business structure options are available to medical businesses including makers of medical devices and technical firms.
  • Contracts. The Stark Law and AKS self-referral statutes cannot be violated by employment, vendor, or company contracts. The contracts should also assist the medical practice in maximizing earnings while putting a priority on providing all patients with the high-quality care they deserve.

At Dike Law Group located in Frisco, we also advice medical practices about the following issues:

  • Healthcare business dispute resolution
  • Health practice business formation (S-corporations, professional corporation, partnerships)
  • Healthcare business commercial leases
  • Employment & consulting agreements
  • Healthcare E-commerce and Internet issues
  • Licensing agreements & Intellectual property protection
  • Health practice Mergers & Acquisitions (M&A), including purchase and sale of healthcare practices & companies
  • Non-competition agreements
  • Non-disclosure agreements
  • Technology Agreements

Strategies used to address the resolution of healthcare business disputes:

Every healthcare organization should consider eventual exit issues from the beginning and throughout all stages of development, as well as how the founders and leaders might protect themselves in the event of a dispute. Depending on the party with whom the issue is, there are various forms of disputes:

  • Business partner disagreements.There may be disagreements with suppliers, vendors, other medical facilities, patients, insurance providers, and others over a range of topics. Payment, services, patient rights, and other financial difficulties are among these.

Time is a valuable resource for doctors. Patients cannot receive care while a case is pending in court. We assist in the drafting of contracts that call for alternative conflict remedies like:

  • Arbitration
  • Mediation
  • Negotiation

Because of our extensive experience, we know what arguments and tactics work best to settle disagreements so you can concentrate on your medical practice.

  • Regulatory agency disagreements. When the FTC, FDA, or other federal or state agencies issue warning letters, file complaints, or take other legal actions, disputes could also develop, the laws and rules governing these bodies' dispute resolution procedures must be followed by medical practices and medical businesses. Here at Dike Law Group our lawyers work to take proactive actions to the following:
  • Can reduce the steps taken to ensure compliance
  • Show that the medical practice is making an effort to comply
  • Show that the medical practice in in fact in compliance
  • Can be used to settle legal disputes by discussion and settlement as opposed to protracted court battles

Forming a business for medical practices and medical businesses: What to be cognizant about?

There are benefits and drawbacks to each type of business structure, regardless of what type of medical practice you have. Additionally, there are federal and state regulations that might dictate the structure of your firm establishment.

The health, privacy, and protection of the patient come first, hence medical practices that serve patients generally cannot select and choose a company structure like other firms. Laws like the Medical Practice Act's Business and Professions Code section 2400, which states in relevant part: "Corporations and other artificial entities shall have no professional rights, privileges, or powers," restrict the choice of structure.

These federal and state rules, how the patient is served, how the entity can be dissolved so the patient's rights are safeguarded, and a variety of other legal, medical, and business concerns must all be taken into account by healthcare providers.

Considerations when drafting employment and consulting contracts

Quality doctors and medical staff are essential to every medical practice. There are many issues that are particular to healthcare procedures and must be considered. The agreements must, first, not be in violation of the Stark Law or the Anti-Kickback Statute. Our knowledgeable attorneys define when contracts transgress these laws. We also go over the Stark Law exceptions and AKS safe harbors that may be utilized to get around these restrictions if certain conditions are fulfilled, like the need for written agreements, fees based on fair market value, and agreements not based on the quantity or number of referrals.

Smart employment and consulting contracts need careful drafting and negotiation, which is a legal art. You are just asking for problems if you use standard forms that you could download from the Internet or those are used in non-healthcare sectors. This could result in complaints, fines, penalties, and even the closure of your medical business.

More problems with employment contracts include:

  • the healthcare providers' required licensure and certificate criteria. Requirements for continuing education in healthcare must also be considered.
  • It is important to outline the scope of services the healthcare practitioner can give, the level of supervision needed for the new hire, and daily goals for patient care. It is important to check any restrictions on the healthcare provider's employment.
  • Analyzing and documenting mor responsibilities that are particular to the kind of healthcare practice is also important.

Our knowledgeable healthcare attorneys combine their business expertise with their in-depth understanding of healthcare laws and regulations, both of which have developed as a result of their experience working with a wide variety of medical practices and healthcare firms.

E-commerce and Internet Issues

Healthcare practices are leveraging e-commerce and the internet to deliver services through telemedicine and to advertise their practices to their patients, notably during the pandemic.

These enterprises are governed by both federal and state legislation. Medical facilities that use telemedicine must be aware of the following:

  • Who is permitted to attend telemedicine conferences
  • Whether or whether it is possible for patients and doctors to communicate while they are in different states
  • What information can be sent electronically, and does it violate the Health Insurance Portability and Accountability Act when it does? (HIPAA)
  • Many further telemedicine problems

Businesses that engage in e-commerce on the internet want knowledgeable healthcare attorneys who can give them advice on:

  • Difficulties with the corporate practice of medicine
  • FTC regulations that govern candor in patient communications, including marketing and advertising by medical practitioners on websites and social media
  • Truthfulness in testimonial posting is governed by FTC regulations, which include disclosing whether a reviewer was compensated or given a discount.
  • Issues with anti-kickback and fee-splitting
  • Difficulties relating to intellectual property such as copyright and trademarks
  • Potentially Alleged Unfair Competition

Intellectual property protection and licensing agreement issues

Businesses that create novel medical devices, including those in digital technologies, emerging healthcare items, cannabis enterprises, dietary supplement firms, nutrition companies, and other product and service sectors, wish to safeguard their research from rivals.

To safeguard the copyrights, trademarks, trade secrets, and patents owned by your business, we negotiate and draft licensing agreements and contracts. Your intellectual property rights may contribute to your profitability in many ways, including:

  • Licensing or assigning your intellectual property rights to others
  • offering a platform for subscription services to vendors and clients who use your technology and services

Technology agreements and agreements for the distribution of royalties are other contracts.

Mergers & Acquisitions

The corporate practice of medicine lines must be understood by medical practices. Medical practices receive expert legal counsel from qualified healthcare lawyers on a wide range of legal matters, such as business formation, employment contracts, mergers and acquisitions, and employment contracts.

For legal guidance on business creation and compliance difficulties, medical practices and medical firms may contact Dike Law Group located in the DFW Metroplex. Physician practices and healthcare organizations can get help from our skilled healthcare attorneys with their legal, commercial, and medical needs.

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