We’re awash–pardon the pun–in medical spas, IV hydration centers, nurses opening healthcare practices, multidisciplinary centers, and health and wellness groups of all types.  This stuff is exploding around the country.

One question we typically get across healthcare ventures is this: how do I get an MD involved? Here are three basic legal tips.

Hi everyone, I’m Michael H Cohen founding attorney of Cohen Healthcare Law Group.  We provide legal strategy and regulatory advice to businesses that accelerate health and wellness.

First, in a strong corporate practice of medicine State like California, stay away from the term “medical director.”  Medical doctors direct clinicians, not business ventures.  In a weak corporate practice of medicine State, you could write the agreement with the physician such that the business entity (typically the MSO) states that it exercises no control over medical decision-making.

Second, avoid having the MSO or business arm make flat-fee payments to the medical doctor.  This tends to look like a kickback or fee-splitting.  If you want to know why, just search on our blog for “kickback” or “fee-splitting,” and you’ll find a ton of articles.

Third, don’t get confused about “the 51%” if you’re in California.  The 51% refers to the minimum percentage ownership all the medical doctors must have of the professional medical corporation which is the clinical entity.  Licensed nurses, acupuncturists, social workers, and other designated clinicians can own the remaining 49% (or less).

The “51%” is, again, ownership in the Professional Medical Corporation, the clinical arm.  It is totally different than the management and marketing arm, or MSO – management services organization.  There in the MSO, anyone, medical doctor or other clinician or layperson, can own any percentage or even 100%.

Thanks for watching, if you have questions please contact us, we look forward to working with you soon.