When two or more medical practitioners decide to form a partnership, it`s essential to have a detailed partnership agreement in place. A partnership agreement is a legal document that outlines the expectations, responsibilities, and duties of each partner. It is critical to have a comprehensive partnership agreement in place as it helps in avoiding conflicts and resolving disputes amicably if they arise.
Here is an example of a medical practice partnership agreement:
1. Name of the Partnership
This section should clearly state the name of the partnership and other details such as the address, phone number, and email address.
2. Purpose of the Partnership
This section should clearly define the reason for the partnership. It should describe the services the partnership will provide and the goals it intends to achieve.
3. Partnership Capital
This section deals with the contributions that each partner will make to the partnership. It should list the cash, equipment, and other resources each partner will bring. It should also clearly state the terms of distribution of profits and losses.
4. Management and Decision Making
This section should outline the roles and responsibilities of each partner and how decisions will be made. It should specify the procedure for decision-making, who will have the final say, and how partners can override each other`s decisions.
5. Admission of New Partners
This section should provide the criteria for admitting new partners. It should state the process, rights, and responsibilities of new partners, and how their contribution will be recognized.
6. Partnership Dissolution
This section should outline the terms of dissolving the partnership. It should state the procedures for winding up the partnership, settling debts, and distributing the assets.
7. Non-Compete Clause
This section should state the terms of the non-compete clause. It should specify the geographical areas where partners cannot practice or compete, the duration of the non-compete, and the penalties for violating the agreement.
8. Arbitration and Dispute Resolution
This section should outline the terms of resolving disputes. It should state the procedure for arbitration and mediation, the appointment of arbitrators, and the fees involved.
In summary, a medical practice partnership agreement should cover all aspects of the partnership, including financial contributions, roles and responsibilities, decision-making processes, admission of new partners, partnership dissolution, non-compete clause, and dispute resolution. It`s essential to have a competent attorney draft the agreement to ensure that the document is legally binding and comprehensive.