Tag: California medical practice

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Building a Group Practice Nursing Business

Nurses are indispensable to healthcare in the United States. The more than 525,000 actively practicing registered nurses (RNs) in our state work hard to ensure patients get proper care (California Board of Registered Nursing).

If you are a registered nurse considering building a business, it is crucial that you put the proper structure in place. These ideas from a Fremont, CA business attorney provides a comprehensive overview of the key things to know about building a group nursing practice in California.

Select the Appropriate Entity for Your Group Nursing Practice

The California Nursing Practices Act is a set of state laws/regulations that govern nursing. It outlines the process for licensure, the scope of practice, and even disciplinary procedures. California’s corporate law also regulates nursing practices. You will need to select your legal entity when building a practice. For most group practices in nursing, the best option is:

Professional nursing corporation: A professional nursing corporation is a legal entity structured under state law that allows registered nurses to offer nursing services through a corporate organization. There are many advantages to forming a professional nursing corporation, including tax advantages and liability protection.

A note on California law: There are strict requirements regarding professional nursing corporations in California. While several different licensed medical professionals may have an ownership stake. a registered nurse(s) must own at least 51 percent of the business.

What You Need to Do to Build a Group Nursing Practice in California

As with any other type of business in the health care industry, a nursing practice needs a strong foundation. Here are some key things to do when building your group nursing practice in California:

Select a name (naming convention): You need to select a name that meets state naming conventions. Both the official and the DBA name should have “nursing” in it.
Negotiate ownership and structure: Negotiating ownership and structure is another major step. Along with other things, it typically involves deciding who the shareholders will be, determining the percentage of ownership, and structuring the company in a way that both meets California legal requirements and the needs of the parties.
File articles of incorporation: Filing articles of incorporation with the California Secretary of State is necessary to legally establish your professional nursing corporation. The document outlines basic information about the corporation, including its name, purpose, the agent for service of process, and the initial directors.
Develop corporate bylaws: Corporate bylaws are the internal rules that govern the corporation’s operations, including the roles and responsibilities of the directors and officers, meeting protocols, and procedures for making major business decisions.

Building a successful nursing practice is complicated. Do not try to figure everything out alone. An experienced business attorney can help you protect your individual interests and put the best business structure in place.

Get Help from a California Business Lawyer for Nursing Practices

Lynnette Ariathurai is a business attorney experienced in medical practice structures. If you have any questions about building a group nursing practice, she can help. Contact Ms. Ariathurai today for a confidential consultation. From her Fremont office, we provide business services to group nursing practices throughout the Bay Area.

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Business Legal Items Needed to Open a New Medical Practice in California

Are you preparing to open a brand new medical practice in California? If so, there are important business and legal considerations that you should be aware of. State law impacts the structure and ownership requirements of your business. Here, our Fremont business formation attorney provides a brief overview of the business and legal items needed to open a medical practice in California.

Entity Selection and Business Formation

Business startup is complicated—especially in the health care industry. California has specific rules and regulations regarding the formation of a medical practice. In fact, state law generally prohibits doctors and medical professionals from operating their business as a limited liability company (LLC) or traditional corporation.

Instead, medical practices are usually formed as a specialized type of business called a professional medical corporation. Under California’s Moscone-Knox Professional Corporation Act, there are restrictions on who can serve as an officer/director of a medical corporation and restrictions on who can own shares in these corporations.

Commercial Lease

A new medical practice must operate from somewhere. Most likely, this means that your new business will need to enter into a commercial lease agreement. In entering a lease agreement, there are a wide range of different issues that should be considered, including:

The location and convenience for current and future patients
The monthly cost and duration of the lease
Specialized medical issues, including waste removal, potentially hazardous materials on the premises, and storage of sensitive patient information
Common area maintenance (CAM) charges (also known as a triple net lease (NNN))

An experienced California business law attorney can help you negotiate and draft a commercial lease agreement that works effectively for your new medical practice.

Employment Matters

If your medical practice is planning on hiring employees, you need to take the time to put the proper structure in place. Make sure you and your business partners understand the legal requirements of your business. As an example, all employers in California with five or more total employees are subject to the Fair Employment and Housing Act (FEHA). An employment lawyer with experience representing business owners in the healthcare industry can help you create and implement strategies to limit conflict with employees and reduce your liability risk.

Business Contracts

In the modern business world, contracts are at the basis of most commercial agreements. Whether your medical practice is working with partner companies, such as a medical service organization (MSO), or entering into agreements with outside suppliers/vendors, it is essential that you rely on well-drafted business contracts.

Call Our Fremont, CA Medical Practice Formation Attorney for Help

Attorney Lynette Ariathurai is committed to providing forward-looking guidance and cost effective legal representation. If you have any questions about what business and legal items you need to start a medical practice in California, we can help.

Contact us today for a confidential initial consultation with a business lawyer. From our office in Fremont, we serve businesses and startups throughout the region, including in Hayward, Union City, Castro Valley, Milpitas, and Newark.

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