The CARES (Coronavirus Aid, Relief and Economic Security) Act was enacted into law on March 27, 2020 to help provide financial stability and relief for individuals and businesses affected by COVID-19. While the bill is very broad and addresses a number of areas and industries, we believe the following are important to highlight for our healthcare clients at this time, especially as many doctors struggle to meet payroll and other overhead obligations.
As just one example, many dentists have temporarily closed their offices completely, while others are only seeing patients on an emergency basis. However, even though the office is closed, and the revenue has stopped, expenses will continue to accrue. Although there may be some reductions in expenses like utilities and supplies, rent will still be due.
Additionally, given the close relationships doctors have built with their staff over time and the need to retain quality employees, many doctors have decided to continue paying staff while they are partially or completely closed. Without assistance, this can create a significant burden on the doctor, which is where the CARES Act comes in.
Continue reading CARES Act: Financial Relief for Doctors and Other Small Business Owners as a result of COVID-19
After spending years in dental school and perhaps working for some time as an associate in another practice, you are finally ready to purchase your own practice. Buying a practice is, for many dentists, the most important decision of their careers, and it can be an intimidating task to take the necessary steps to successfully transition from graduate or associate to owner.
Continue reading Considerations When Purchasing A Dental Practice
In a previous post, we discussed how a carefully drafted practice agreement can protect your practice from being dissolved and/or seriously disrupted due to the unexpected death or disability of a practice partner. In this post, we will discuss some of the ways that a carefully drafted estate plan can similarly help you and your family prepare for the unexpected.
Continue reading Estate Planning Essentials for Doctors and Dentists
In our final post in this series, we look at ways to structure asset purchase agreements to resolve disputes that may arise after the asset purchase agreement has been executed. Although the goal of every agreement is to clearly define the rights and obligations of the buyer and seller, disputes can arise even with the most careful planning and best intentions. A well-crafted asset purchase agreement will have mechanisms for resolving potential disputes in a fair and cost-effective manner so that you can continue to build your medical or dental practice.
Continue reading Anatomy Of The Asset Purchase Agreement Part 5: Mediation and Arbitration Provisions
When you are negotiating an asset purchase agreement, either to buy or sell an existing practice, there are provisions that may seem innocuous or appear to be standard boilerplate terms. However, these terms can have considerable financial and legal impacts, regardless of whether you are the buyer or seller. This series of blog posts will identify some of these provisions, and explain their significance, in order to help you make an informed decision.
Usually, the first of these provisions you will see as you read the asset purchase agreement is the provision regarding the allocation of purchase price. This may seem unimportant, since you and the other party have agreed on the overall purchase price. However, the method in which that price is allocated between equipment, goodwill, and possibly the non-compete agreement, can have significant consequences.
Continue reading Anatomy of an Asset Purchase Agreement Part 1: Allocation of the Purchase Price