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Corp's, S-Corp's, and LLC's
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Re: Unique situation

In my practice, we have many clients who are therapists working in this type arrangement, which implies it is most likely a successful arrangement for all parties involved. For the therapist, they give up a percentage of their collections in exchange for office space, patients, marketing, and billing services.

The percentage you will charge needs to be sufficient to cover your real costs, the value of your time, and some profit. If the percentage is too high, however, the therapists will only stay with you long enough to build their own patient panel, and then they will leave to lease their own space and handle their own billing once it's cheaper to do so on their own.

From a legal perspective, you'd need to speak to a lawyer in your state as to whether an S-corp provides you more protection than an LLC. But from a practical point of view, it seems that most psychologists that we work with only pay between $200 and $500 per year for malpractice insurance. That implies to me that non-md mental health providers aren't getting sued very often and for very much money. Even so, it's important that you look into whether you have more than adequate protection in place between entity selection and insurance for the entity.

Please feel free to follow up this response with additional questions regarding this opportunity.

Zip Code: 01801

Re: Unique situation

Thanks, Andrew!

Just wondering, given the fact that the call-ins would come to one centralized number and I would need to be aware of when the therapists are scheduling patients (and may, in fact, manage their schedules to some degree since I have to be certain of which patient is coming and when in order to ensure adequate insurance billing and a fair split of the cost, etc) ... I wonder whether they can be 1099 consultants (they will choose the hours they work, they will choose the disposition of patients, etc - just that they work under my entity and I need to have oversight of their hours) or would they have to be W-2's?

Would you happen to know lawyers in NJ who work with practices such as this one (since you have a few clients doing such a thing).

Thanks!

Zip Code: 08831