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Being offered partnership in a medical practice is usually good news, but not always. One physician paid $60,000 to buy in, then signed a contract making her cover all of a $325,000 bonus her two partners had given themselves. That meant $9,000 a month out of her pay, and leaving would keep her liable for a third of the office leases until she was replaced. Health law attorney and Physician Agreements Health Law founder Dennis Hursh discusses his KevinMD article "The partnership offer that cost her $325,000." He estimates he has reviewed four or five dozen partnership agreements and found only two really bad deals. You'll hear what to ask for in your first employment agreement, while you can still negotiate: the practice's finances, the shareholder agreement, the buy-in method, and partnership criteria. He also covers a partner title with no ownership or vote, a clause giving one founder 60 percent of every vote, and which decisions should be unanimous. Stay for the gut check and questions to ask before becoming anyone's business partner.
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