Are you a physician planning to buy or sell a medical practice in Ontario?
There’s so much at stake through the entire process of buying or selling a medical practice. Prior to completing your purchase or sale, it’s important to have the office lease properly reviewed to ensure that there are no hidden risks, and that the ‘assignment of the lease’ occurs properly, protecting the interests of both parties along the way. The best way to do this is by seeking help from professionals.
Contact us today for your complimentary consultation with a healthcare expert.
Ensuring You and Your Practice Are Protected
At Cirrus Consulting Group, we offer physicians Practice Assignment and Lease Acquisition consulting services to ensure our physicians are well prepared for any lease transition. A strong lease can set you up for a long and profitable career by offering security and protection. Let our leasing experts help you through this critical and detail-sensitive step in your career so you can protect yourself, your family, and your investment.
Critical Issues to Consider When Buying or Selling a Medical Practice
When a medical practice changes ownership, so must the lease agreement; it needs to move from the name and control of the selling physician, to the name and control of the buying physician. Some key concerns to keep in mind when buying or selling a medical practice include:
- Will you be liable for the property rent even after selling or transferring the practice?
- Has the lease been signed under your personal name?
- Is there anything in your lease that directly affects your ability to transfer or sell your practice?
- Does the lease provide you with a long enough term and options to renew for you to use after you buy the practice? Are you sure those options to renew are available to you? Often these options disappear as soon as one tenant assigns the lease to another physician.
- Is the lease set up with enough flexibility to allow you to bring in associates or eventually sell your medical practice when you retire?
- Does the landlord have the right to terminate your lease and kick you out of the building?
Don’t let these critical issues surface when it’s too late. For a smooth risk-free medical practice assignment or lease acquisition, it’s imperative that your lease agreement, and the terms and clauses within it, are set up to protect your investment well into the future.
Whether you are the buyer or seller, some of the key questions/issues you want to address are:
- What is the “market value” of your practice today?
- Do you have lease obligations as it relates to your office space?
- Do your colleagues know you are planning to exit?
- Do you have any partnership/cost sharing obligations with them?
- MOHLTC Requirements: Are you familiar with the process for properly transitioning your patient roster, and your practice?
- How much are you prepared to spend in order to step into a “full” medical practice immediately?
- Are you prepared to add your name to an existing office lease agreement, or sign a new one?
- What is the structure of the current expenses reimbursement at the medical office you are looking to join? Or is it a solo office?
- The Ins and Outs of the FHO: How familiar are you with the business and administrative aspects of managing a FHO practice and roster?
Trust the experts at Cirrus Consulting Group who for over 20 years have represented, protected, and saved physicians like you from suffering the consequences of a bad lease.