Our Client
Two entrepreneurial physician-owners founded and rapidly grew a network of specialty clinics across four states. They needed a strategic framework to support their vision for continued expansion and prepare the business for potential outside investors.
With those goals in mind, the owners restructured the company into separate legal entities:
- State-level professional corporations (PCs) to employ or contract with physicians
- A management services organization (MSO) to provide nonmedical personnel, space, equipment, supplies, and services for the clinics—in exchange for a management fee paid by the PCs
To support this arrangement, the client needed to identify an MSO management fee structure that would:
- Ensure that management fees aligned with fair market value and commercial reasonableness principles
- Comply with applicable laws and regulations (e.g., the Stark Law, the Anti-Kickback Statute, corporate practice of medicine restrictions)
- Position the practice to appeal to potential investors in the future
Our Approach
On its attorney’s recommendation, the client engaged The Best Practice (then known as Intentionate Healthcare Advisors).