Three Types of Medical Practice: Group, Partnership, and Sole Proprietorship

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Three types of Medical Practice: Group, Partnership, and Sole Proprietorship

Group Practice

The majority of physician practices are group practice for a variety of reasons. In a group

practice, physicians share patient duties and the physical office space. This is the second most

popular form of practice. It’s considered as three or more physicians, who provide medical

care, jointly using the same facility, personnel and dividing the income as agreed. Typically

there is a greater financial security than with the solo practices. The pay includes salary and

bonus pay. In addition, the hours in a group practice are more flexible because there are other

doctors that are available to cover for each other. However, there are some negative aspects to

a group practice, such as loss of independence, renovating, hiring and firing personnel, relocating, and expanding facilities for consensus requirement. With most issues, there are both positive and negative sides to being a member of a group practice. If you are considering it, you need to be cautious and evaluate the nature of the practice to determine if you would be compatible with the group members.

However, the rewards of being a member of a successful group practice can readily

outweigh its disadvantages. One great advantage of a group medical practice is the group

members’ ability to share the burden of being “on call” to cover patients during non business

hours, such as nights, major holidays. Careful inquiry should be made at the outset of a

physician’s affiliation with a group, however, to determine the group’s particular call-coverage

practices, and the extent to which call-coverage responsibility will fall on the particular

physician. ...

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...(SSI) of a former proprietor can’t be used by a new business owner.

The owner reports business gain or losses on his or her personal income tax return. A sole proprietor is taxed on all assets from the business at appropriate personal tax rates. The corporation income, and acceptable expenses, is reflected on the person’s tax return. All corporation income is taxed to the owner in the year the business acquire it, whether or not the owner take away the money from the business. No disconnect federal income tax return is acquired of the sole proprietor.

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