Article

If I sign a management arrangement should I be on the bank account?

Provided by:  Jennifer Kirschenbaum, Esq.

November 15, 2018

Question:

Jennifer, 

I was approached by a business person to sign into a management services organization through an agreement.  Part of the deal is this person wants control over my bank account.  What does everyone else do?  Should I give up control of my bank account and just assume this is common place? 

Thanks, Dr. P

Answer: 

Control over a practice's bank account (as the exclusive authorized person to access, or otherwise) will certainly carry weight on any scale as to who is in charge of your medical practice.  If the answer is anyone other than you, or other physician owner(s) you may have a serious problem on your hands.  NYS and other close proximity states maintain what is called a "corporate practice of medicine", and as a doctor under a corporate practice of medicine contstruct, you can hire a company to do back end services for you, but you cannot give away the keys to your practice.  To ensure you are staying on the cleaner side of the analysis, never give away control to your bank account.  If you are adding a signatory as an authorized accounts payable person, etc, that is a different story and revocable at any time. 

Questions on management structures?  Give Jennifer a call (516 747 6700 x, 302) or email (Jennifer@Kirschenbaumesq.com).      


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
 
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

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!
If I sign a management arrangement should I be on the bank account? - November 15, 2018 - Jennifer Kirschenbaum

Article

If I sign a management arrangement should I be on the bank account?

Provided by:  Jennifer Kirschenbaum, Esq.

November 15, 2018

Question:

Jennifer, 

I was approached by a business person to sign into a management services organization through an agreement.  Part of the deal is this person wants control over my bank account.  What does everyone else do?  Should I give up control of my bank account and just assume this is common place? 

Thanks, Dr. P

Answer: 

Control over a practice's bank account (as the exclusive authorized person to access, or otherwise) will certainly carry weight on any scale as to who is in charge of your medical practice.  If the answer is anyone other than you, or other physician owner(s) you may have a serious problem on your hands.  NYS and other close proximity states maintain what is called a "corporate practice of medicine", and as a doctor under a corporate practice of medicine contstruct, you can hire a company to do back end services for you, but you cannot give away the keys to your practice.  To ensure you are staying on the cleaner side of the analysis, never give away control to your bank account.  If you are adding a signatory as an authorized accounts payable person, etc, that is a different story and revocable at any time. 

Questions on management structures?  Give Jennifer a call (516 747 6700 x, 302) or email (Jennifer@Kirschenbaumesq.com).      


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
 
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

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!