| BEFORE JOINING A MEDICAL GROUP, YOU MUST | | | | rather one or two of the partners that own it |
| LEARN THE ANSWERS TO THE FOLLOWING | | | | directly either personally or through a corporate |
| QUESTIONS1. Who owns the property where your | | | | entity. If the medical Group owned the building then |
| office is located?2. If one or more partners own the | | | | this scenario would be different, and it would be a |
| property, do they charge your Group rent for the | | | | good idea to address this point further.3. How much |
| space it occupies? To understand this, let's say that | | | | time is left on your office lease?4. How many |
| your Group has three doctors. Dr. Senior Citizen | | | | doctors work in the Group? How many are partners? |
| bought the building 15 years ago, where your office | | | | How many full partners? How many partial or |
| is located. He's now the landlord. Dr. Middle Aged, and | | | | non-equity partners? (A non-equity partner is |
| Dr. Young Un' are employees of the Group. Your | | | | someone who is held out to the public as a 'partner' |
| Group then pays rent, as it always did to the landlord. | | | | yet does not share in the profits of a true 'partner' A |
| But now, the landlord just happens to be the senior | | | | non-equity partner will usually be paid a higher salary |
| partner of the Group. In reality, he's paying himself | | | | than when he was simply an employee. The |
| money from his practice for rent. Believe it or not, | | | | downside is that as a non-equity partner, you have |
| this is totally legitimate. He's using pre-tax dollars to | | | | no right to, and cannot claim any portion of the |
| pay his office rent. He's then receiving rent from the | | | | profits.) How many physician employees?5. How |
| Group to pay any mortgage or other expenses he | | | | many staff do you employ?6. Hours of operation?7. |
| has on the building, like maintenance and upgrades. I'll | | | | Call schedule? Do partners take equal call? Do |
| bet you anything that he's making a profit on his | | | | associates take same call as the partners?8. How |
| investment. It's a strange situation and gives the | | | | many days per week are you expected to see |
| appearance that there's something wrong with this | | | | patients in the office?9. How many offices will I need |
| set-up, but most times there's nothing wrong with | | | | to travel to?10. Do I rotate through different offices |
| doing this. The senior partner could just as easily | | | | or do I stay in one office?Even before you start to |
| have bought a building down the street. But shouldn't | | | | negotiate your physician employment contract, you |
| Dr. Senior Citizen at least give his Group a discount | | | | need information- lots of it. The only way to get that |
| on the rent? From Dr. Citizen's point of view, why | | | | information is to ask lots of questions. This way, |
| should he? From the Groups' perspective it seems | | | | you'll be better informed, and better able to evaluate |
| greedy that Dr. Senior Citizen won't reduce the rent, | | | | your options.Attorney Oginski has been in practice |
| thereby leaving more money in the Group to pay the | | | | for 17 years as a trial lawyer practicing exclusively in |
| employees a bonus at the end of the year.This has | | | | the State of New York. He has recently published a |
| happened in a number of Groups and the employees | | | | book that will help every doctor in residency and |
| wind up paying their partners for the benefit of | | | | every doctor changing jobs to understand their |
| renting space the Group or a member of the Group | | | | employment contract. Take a look at his useful |
| already owns! This tends to generate animosity | | | | website, for more information.Over the last ten |
| because the Partners are clearly benefiting from | | | | years, Gerry has developed a niche practice helping |
| owning the property at the expense of their | | | | residents and physicians who are changing jobs by |
| associates. The employees of the group need to | | | | evaluating and negotiating their physician employment |
| understand that the owner of the property deserves | | | | contracts. Gerry can be reached at or 516-487-8207. |
| to be paid regardless of who the landlord is.In most | | | | All inquiries are free and totally confidential. |
| cases, it is not the Group that owns the building but | | | | |