Article

Does forming a corporate entity protect me from malpractice claims?

 

Provided by:  Jennifer Kirschenbaum, Esq.

April 4, 2019

Question


Hi Jennifer,

I have practiced as a solo practitioner for several decades.  Recently it was recommended to me to form a corporate entity to protect myself from a malpractice claim.  What do you think?  Should I form one? 

Thank you,
Dr. C

Answer

Well, there may be a few reasons to form a corporate entity, but protecting yourself from a malpractice claim isn't high on that list.  As a professional you cannot insulate yourself from a claim of professional malpractice.  If a patient or their family sues, you would be named personally.   This is why you have insurance - to cover against malpractice claims.   So, should you form solely to protect against a malpractice claim when you are practicing as a solo? No.  However, you may elect to engage in corporate structuring to move assets out of your name to protect against malpractice exposure - but that is a different conversation related to planning and protection.  

Would my answer change if you employed other providers?  Yes.  

Looking for the KK Healthcare Exchange?  Click Here. 

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Looking for HIPAA and compliance forms?  
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Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
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Does forming a corporate entity protect me from malpractice claims? - April 4, 2019 - Jennifer Kirschenbaum

Article

Does forming a corporate entity protect me from malpractice claims?

 

Provided by:  Jennifer Kirschenbaum, Esq.

April 4, 2019

Question


Hi Jennifer,

I have practiced as a solo practitioner for several decades.  Recently it was recommended to me to form a corporate entity to protect myself from a malpractice claim.  What do you think?  Should I form one? 

Thank you,
Dr. C

Answer

Well, there may be a few reasons to form a corporate entity, but protecting yourself from a malpractice claim isn't high on that list.  As a professional you cannot insulate yourself from a claim of professional malpractice.  If a patient or their family sues, you would be named personally.   This is why you have insurance - to cover against malpractice claims.   So, should you form solely to protect against a malpractice claim when you are practicing as a solo? No.  However, you may elect to engage in corporate structuring to move assets out of your name to protect against malpractice exposure - but that is a different conversation related to planning and protection.  

Would my answer change if you employed other providers?  Yes.  

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!