I am looking to join a solo cardiologist's practice in July. One option is to simply negotiate expenses for the first few months as I get the practice going. The physician feels that I will have no problem seeing patients and becoming busy, and I believe that to be true. That said, what sort of financial advice would you give on how to account for expenses and such. Especially:
1) Should I hire my own accountant in addition to the solo doc's? That may be confusing. Also, should I
2) If there's no partnership arrangement at first -- since we're testing the waters -- should I incorporate?
3) any other advice or insight is welcome.

Thanks!

Zip Code: 94115

Here's a situation where you need to be a little careful, since once you begin working with someone, the working relationship can easily become strained unless most issues are spelled out ahead of time. While I know that lawyers can cause a deal to fall apart, I think it makes sense for you to hire a lawyer to draft a document detailing the terms of your arrangement with this other doctor, including:

1. How will expenses be split?
2. How will new patients be allocated between you and him?
3. Will there be a formal partnership down the road? If so, when? And at what price?
4. What happens if you or he decides to give up the practice? Or what if one of you can't work due to a disability?
5. If one of you leaves, what type non-compete arrangement could you live with (assuming it can even be enforced)?

There are so many issues and potential pitfalls to be addressed, that you need to go into this business relationship with more than a handshake. And now is the time to get them all resolved, when you're on good terms with this person.

I have a client in the same boat as you, and he just faxed me a 20 page document that he wants me and his lawyer to review.

I also think you should work with your own CPA at first, and you should have your CPA review the other doctor's financial information for the practice. You want to know his collections, his overhead expenses, and his profit, for the last 3 years. This is called doing your due diligence, and it is generally not very prudent to enter into any financial partnership without first completing your due diligence.

A list of CPAs who specialize in healthcare professionals is available at www.mdtaxes.com/offices.html.

Zip Code: 01801