Keep a Corporate Veil Between Physician Assets and Claimants

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Although there is no “silver bullet” that can provide physicians total protection from the claims of malpractice attorneys, there are several low or no cost strategies that can provide significant asset protection for physicians, or enhance the asset protection physicians may already have.

First, don’t make it easy for a malpractice attorney to “pierce the corporate veil.” You already know that practicing through a professional corporation can keep your assets safe from malpractice claims against your partners and employees. But are you making it easy for a plaintiff’s attorney to “pierce the corporate veil”? Implement the following immediately:

• Have the corporation hold regular meetings of the board of directors and shareholders, and keep minutes of these meetings.
• Sign documents for the practice only in your capacity as a corporate officer.
• Have a physicians’ lawyer review the legal, insurance, financial and tax foundations of your practice regularly to assure they are appropriate.

 

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Dennis Hursh

Dennis Hursh

Dennis Hursh has been providing healthcare legal services in Pennsylvania since 1982. Since 1992, he has been a physician's lawyer serving as Managing Partner of Physician Agreements Health Law. Dennis has devoted his life to serving physicians and physician organizations, such as POs, IPAs, CINs and medical practices. He is the author of the definitive book on physician contracts "The Final Hurdle - a Physician's Guide to Negotiating a Fair Employment Agreement, and a frequent lecturer on physician employment agreements.

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