Ancillary entities: Be sure to update buy-in/payout agreements

You should make a habit of reviewing employment and shareholder agreements in your group medical practice every year. The same holds true for any ancillary entities. It's critical to ask these questions to update your buy-in and payout agreements:

• Have we covered all economic issues of the ancillary service/business?
• Do we have mechanisms in place for determining fair market value of all those assets/services?
• Do we need to amend agreements now based on questions or new circumstances that arose in the past year?
• Do all our agreements provide for succession and maximize tax advantages for the practice corporation and any related entities?

And, of course, always get appropriate legal and financial (tax) counsel in your reviews.