Dermatology, ophthalmology, radiology, urology? The list goes on. Yet, in any physician practice management transaction, the following six key considerations apply and, if not carefully managed, can derail a transaction:

1. Corporate Practice of Medicine

Although somewhat antiquated, the majority of states still have a prohibition on the corporate practice of medicine. This results in a private equity firm acquiror having to set up a “friendly physician” model with a management services agreement and securities transfer restriction agreement. If done properly, the private equity firm may be able to consolidate for both financial reporting and tax purposes.