Diagnosing Causes of Physician Group Disputes

There’s no question about the potential value these days of physician practice mergers. When signing merger agreements, however not all physicians in these groups pay attention to the potential for disputes that arise over any number of reasons, including:

• Personality conflicts: Personalities clash all time and sometimes there is nothing in an agreement as to the procedures that should ensue and, if the partnership does breaks up, there may be no clear, documented agreement regarding distribution of assets.
• Addition of new equity partners: If there’s nothing in the agreement regarding addition of new equity partners, there may be a dispute over the impact on shares held by partners in the existing group.
• Change of heart about partnership: The partnership may sign a contract with a physician that includes an option to become a formal partner, but later on, one of the partners may change his or her mind and won’t allow the transition to happen. That can easily result in litigation.
• Buy-Out Clause Is Left Out: A conflict may occur because a partner wishes to be bought out, but there’s no agreement or understanding regarding procedures, including details on how distribution of the departing partner’s shares should be handled.
• Unethical behavior by a partner may cause a huge dispute.
• Lack of merger agreement: No mechanism exists in the current agreement for a merger with another practice.

The ample room for conflict is why we recommend the services of our attorneys at Lubin Austermuehle. If you want to go to court, know that we are fierce and formidable advocates with a long and substantial track record of success. To save time, pain and money, we always recommend exploring alternative legal avenues first, including, negotiation, arbitration and an equitable settlement. CONTACT US for a FREE consultation where we can get to know your needs and you can become familiar with a firm that puts its trust in results and relationships.

---