Management Disputes in Medical Groups Can Lead to Conflict, Costs and Consequences

Unfortunately, even the most responsible group medical practices may not be fully prepared for the myriad of conflicts that can arise when a practice manager is negligent and does not live up to the responsibility of fiduciary duty. Even the best agreements – and we’ve created hundreds at Lubin Austermuehle -- cannot cover every conflict that arises. Typically, for management at medical group practices, legal issues may arise regarding:

• Mismanagement of partnership funds.
• Failure to fulfill important business contracts.
• Failure to fully evaluate the downside of a business deal.
• Entering into a very risky business deal.
• Hiring inept and/or unqualified employees.

There are serious consequences of mis-management, including financial losses for the medical practice and the consequences experienced by clients who have been left by the wayside . In some instances, the entire practice can be held legally responsible for the negligence of management and even one partner. This is why it’s important to start talking to Lubin Austermuehle as business and litigation attorneys who counsel wisely, from agreement formation to successful litigation if a suit occurs. We believe very strongly in results and relationships and the relationship between partners at a medical practice is worth every ounce of effort -- from everyone—to keep it viable and strong.

Savvy Medical Practice Groups Should Know About the “Business Judgment Rule”

Though there are lots of areas of responsibility for managers to closely consider, it’s not all doom and gloom if a mistake is made. One legal recourse is demonstration of “reasonable care” in undertaking a business decision. If it seems like an “informed decision,” management may be protected by the “Business Judgment Rule” and you can learn more about that by going to this page of our Lubin Austermuehle website.

Contact LA for a FREE consultation and discussion of your specific challenges, concerns and thoughts about your situation. We’ll offer our initials thoughts and give you a chance to judge our skill level, experience and level of giving a darn.

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