A Corporate Veil for Physicians Protects from Claimants

There are several low or no cost strategies that provide a corporate veil for physicians for significant asset protection.
corporate veil for physicians

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 a corporate veil for physicians for significant asset protection, or to 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”? Implementing the following immediately will enhance the corporate veil for physicians:

• Have the corporation or LLC hold regular meetings of the board of directors and shareholders (or managers and members of an LLC), and keep minutes of these meetings.
• Sign documents for the practice only in your capacity as a corporate or LLC 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, the first law firm in the country to focus exclusively on physician employment agreements. Dennis has devoted his life to serving physicians 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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    After purchasing the physician contract review, you will receive an email asking you to transmit the agreement and any concerns you have to me. Many physicians do this by email, but I will be available by phone, too. In three business days from the time you purchase the Physician Prosperity Program® and transmit the draft physician employment agreement along with any concerns you have about the agreement and the information I will need to perform the MGMA analysis, you will receive a detailed physician contract review letter from me.

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