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).      


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