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Entrepreneurs & the TX healthcare industry: Tips for success

Investing in the health care industry is generally a profitable endeavor. In fact, a report by CNBC states the health care industry is one of the top five profitable franchises within the country. Getting into this market can result in large financial rewards … if done wisely.

A word of caution — the rules vary depending on the state

Our country is one of two basic sets of laws: federal and state. Both come into play when it comes to owning a medical practice. As a result, it is important to take into consideration federal and state law before buying a practice.

In Texas, it is illegal for corporations or non-physicians to operate a medical practice. Lawmakers put forth these laws to help better ensure the practice of medicine is focused on the well-being of the patient as opposed to financial gain.

There are work arounds that can allow non-physicians to have a share in a medical practice. In some cases, non-physicians can set up management service organization (MSO) to partner with other physicians. In order to stay within the bounds of the law, the MSO must focus on non-medical business needs. Since private medical practices have typical business needs, this relationship can prove advantageous for all involved. The physicians can focus on the medical side of things with the MSO can take care of billing, human resources, operational needs and the financial management of the practice.

It is important to draft agreements and contracts to the specific situation in order to find success and better ensure the arrangement remain within the bounds of the law. When done wisely, the agreement can be more than just legal. It can result in steady income for the MSO and increased flexibility for the medical practitioners. An attorney experienced in the legalities of buying and selling health care companies within Texas can discuss these and other options to help better ensure a successful and legal business enterprise.