Let's say a partner in your medical practice exits partway through the firm's tax year. How are partnership tax items for that year allocated between the departing partner and the remaining partners? There is more than one way to handle this situation. In general, three methods are allowed for making such allocations. (Source: Treasury Regulation 1.706-1(c)(2))
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If there's one thing that can harm the success of a medical practice, it's having patients spending too much time in the waiting room. Appointment scheduling is a critical function of a doctor's office, yet many practices schedule in a seemingly haphazard fashion.
Nursing homes and personal-care facilities present many health and safety risks for their employees. In fact, combined with patient violence against employees, the situation has become so serious that the Occupational Safety and Health Administration (OSHA) has made nursing homes a top priority for safety inspections.
When it's time to negotiate or renegotiate a physician's employment contract, there are critical issues that must be understood and settled. The fulfillment and career potential of the phsician and the success of the practice depend on it.
It takes years to build up a successful medical practice that is respected and valued by the community. It can also take time to find a qualified buyer at a satisfactory price. However, you can take several steps now to help provide a smooth transition when you finally put out a "for sale" sign.
Here are eight quick suggestions for laying the groundwork:
In certain circumstances, it can be a good tax idea to convert a medical practice operating as a C or S corporation into a limited liability company (LLC) or limited liability partnership (LLP). Here's why: Both LLCs and LLPs can be treated as partnerships for federal tax purposes. The tax rules for partnerships are far more flexible than the rules for corporations.
Every year, studies show that many employees are injured while carrying out their duties. Some even die from job-related illnesses or injuries.
Medical and dental office staff members face many risks on the job, such as contracting bloodborne illnesses from needles or sharps; being injured by diagnostic equipment; and suffering allergic reactions from toxic chemicals used in labs.
Over time, doctors develop their own unique style of practicing medicine. The same is true of medical groups. They develop a style that involves creating a work culture and passing information about it on to staff members. A medical practice's approach to issues such as sick leave and overtime pay are defined and revised over time until they become ingrained in the office's culture.
Since physicians are the revenue producers of a busy medical practice, there can be a temptation to add doctors to ease patient loads and increase the bottom line. But while bringing on more practitioners can reduce workloads and create economies of scale, it shouldn't be a snap decision.
When patients walk into a medical group's office, the first people they meet are the staff members. Studies have shown that with today's managed care, patients spend most of their time in a medical practice interacting with non-physicians, from front desk staff to nurses.