For many healthcare providers in California, partnerships are a vital component of running a successful practice. However, when partners clash, the entire clinic’s daily operations can grind to a halt.
If you are facing a partnership dispute, your patients’ treatment and recovery must remain your top priority. When addressing the issues, focusing on key details is vital to protecting your practice’s value.
Stabilizing operations immediately
An escalating conflict can compromise patient data and freeze your cash flow overnight. To keep your practice running, it is often best to restrict access to sensitive information like Electronic Health record (EHR) systems and patients’ bank accounts. You can also appoint an independent, temporary manager to handle daily decisions while you resolve the conflict.
Prioritizing compliance risks
Following local and federal laws helps your practice stay open and run smoothly. However, partnership disputes often trigger regulatory investigations if your partner does any of the following:
- Bills patients for unprovided services
- Denies job-protected leaves to staff members
- Refers patients to seek treatment their services outside of the practice
- Copies or deletes patient records without authorization
These acts go beyond clever business practice and already compromise patient confidentiality, break employment laws and qualify as fraudulent activity. Preserving records and communications with your partners can help show wrongdoing. It also helps reduce evidentiary challenges that can come up later.
Using structured resolution paths first
Litigation is a public record, and a legal battle can ruin a medical group’s reputation. You and your business partner can try mediation to settle the dispute without going to court. A neutral third party can help you talk through the issues and reach an agreement.
In case you have an arbitration clause in your partnership agreement, it is best to follow the provision as required. You can reach a fair settlement faster and out of the public eye.
Planning exit options that minimize disruption
Sometimes, ending the partnership is the healthiest way to stop the conflict. However, your transition plan should still cover how the practice will run until the partnership ends.
If you are considering a buyout, review what can trigger it, how the value is calculated and any restrictive terms to reduce the risk of problems. You also need to make sure the final agreement includes mutual releases and a nondisparagement clause for all former partners.
Preparing for possible litigation
Despite your best intentions, some disputes cannot be resolved peacefully and may require you to go to court. A lawyer that works closely with healthcare professionals can help ensure your litigation strategy aligns with your continuity goals for your practice.
Securing the future of your practice
If your practice has internal conflict, addressing the dispute early can support the long-term stability of your clinic. Your patients, staff and professional legacy deserve proactivity and protection.