there are a few things you need
to consider:
1. Can you meet any patient or
contract? What might prevent
you from meeting these service
obligations, and what will happen
if you don't meet them? In the
scenario above, failing to meet
the billing targets means you will
not be paid the second and third
installments of the purchase price.
of the purchase price is to be
by installments, don't agree
to transfer the shares or hand
over the share certificates until
after the last payment. Keep
security over the shares until the
total purchase price is paid.
What happens if the company goes
bankrupt or becomes insolvent
before the entire purchase price is
paid? If you've already transferred
the shares in your practice company,
how will you get them back?
that uses your name, that name
corporate practice. Consider
changing the name of your practice
company before you sell to avoid
potential difficulties trading
under your name in the future.
courts will generally not look
behind the terms of the written
contract. Standard contracts
are often used, and you need
to consider whether this is
appropriate for your circumstances.
The courts will assume you are a
sophisticated contracting party
and that there was equality of
bargaining power when the terms
of the sale were being negotiated.
the clinical records will be part
of the property that is sold with
the business. Ensure the contract
contains a clause allowing you
the right to access and copy
relevant medical records in the
case of a claim or complaint
against you in the future.
provide, and the ongoing financial
arrangements. Many practitioners
assign their Medicare billings to
percentage by the practice. In the
case of a dispute with Medicare
where repayment of benefits is
required, because your provider
number was used, you will be
obliged to repay Medicare the
full amount, even if you only
received a percentage. Include a
clause in the contract allowing you
to recoup the balance from the
company if this situation occurs.
and, if there is a dispute, call in a
mediator early. Early alternative
dispute resolution with an
accredited and experienced
mediator may save you significant
legal costs in the case of a dispute.
not provide cover for commercial
disputes arising from the sale
of your practice or business.
If there is a dispute over the
contract, Avant's Practitioner
Indemnity Insurance Policy will
not respond, and you need to be
aware that legal costs associated
with a commercial dispute of this
nature can be significant. Be sure
of your obligations under any
agreement before you sign it.