Dentists, physicians, veterinarians and other healthcare professionals often form partnerships to share resources, expand services, or transition ownership. Morgan Advisory Group helps healthcare professionals design partnerships that are durable, compliant, and strategically grounded. The following considerations are essential for long-term success.

1. Prioritize Alignment Before Formalizing a Business Partnership

Enthusiasm alone does not create a stable business partnership. Long-term alignment on values, goals, and communication is critical.

Discuss early:

• What are each partner’s short- and long-term objectives?
• How will decisions be made? Will they be made unanimously or by majority?
• What does success look like for each partner?

Why it matters:

Clear alignment reduces friction and provides a foundation for sustained growth.

2. Choose the Right Legal Structure

Healthcare partnerships commonly use general partnerships, professional corporations, or professional LLCs. Each comes with specific tax implications, liability protections, and state licensing requirements.

Key considerations:

• What structures are permitted for licensed professionals in your state?
• Should ownership be equal or tied to capital, production, or responsibilities?
• How will profits be allocated?

Morgan Advisory Group advises on entity selection that supports regulatory compliance, tax efficiency, and long-term strategy.

3. Define Roles, Responsibilities, and Compensation

Ambiguity around duties or financial expectations is a leading cause of partnership disputes.

Business partnership agreements should address:

• Clinical and administrative responsibilities
• Compensation (salary, production-based pay, profit sharing)
• Credit or compensation for non-clinical duties
• Handling of changes in availability, such as reduced hours or leave

Why it matters:

Clear, written expectations prevent misunderstandings and support operational stability.

4. Establish a Framework for Resolving Disagreements

Disagreements are inevitable. Successful partnerships rely on predetermined processes rather than ad-hoc decisions.

Agreements should include the following:

• Tie-breaker rules or a managing partner structure
• Mediation or arbitration procedures
• Buy-sell mechanisms for partners who wish to exit

These mechanisms protect the business and help maintain continuity when viewpoints diverge. They also provide a predetermined manner to address any partner exits while not materially disrupting the business for the partner(s) that remain.

5. Plan for Transitions and Exits

Transitions (retirement, disability, relocation, or a future sale) should be planned for from the start. A strong agreement addresses ownership changes clearly and fairly.

Essential terms:

• How ownership interests will be valued
• Payment structure and timing for buyouts
• Lawful restrictions on competition or patient solicitation

Why it matters:

A defined exit plan protects patient relationships, preserves practice value, and minimizes disruption.

Build a Business Partnership Designed for the Long Term

A healthcare partnership should be strategically structured, aligned with professional goals, and supported by a clear legal framework. Morgan Advisory Group brings experience across healthcare law, practice structuring, and long-term business planning to help partners build resilient, future-ready organizations.

To discuss your partnership structure or upcoming transition, schedule a consultation with Morgan Advisory Group.