Health
What Are the Best Legal Structures for Your Medical Practice Business?
Doctors choose their vocation out of a desire to help people, whether by providing clear diagnoses, effective treatment plans, or strategies to manage chronic conditions. For most medical professionals, the most rewarding part of the job is interacting with patients, and providing viable solutions to their problems and concerns. By contrast, few physicians choose their profession out of a love for business administration or behind-the-scenes management.
With that said, behind-the-scenes administrative concerns are incredibly important to the success of the practice, and ultimately to patient outcomes. It is through careful administration, combined with business savvy, that doctors and practice managers keep their operations financially solvent, enabling them to keep treating patients over the long haul. And, skillful administration ensures the safe and efficient delivery of care. Ideally, it creates an environment in which doctors and nurses can focus most of their attention on patient needs, day in and day out.
To achieve these administrative goals, it’s important for doctors and practice managers to think carefully about the legal structure of their business. There are a number of options available, and they have different implications for how the practice is taxed, how it might handle lawsuits, and more.
At the same time, some business structures require more setup than others. For instance, if you wanted to establish an LLC in the Lone Star State, you’d have to take some time to locate a registered agent for your LLC in Texas.
The bottom line: Choosing the best legal structure for your medical practice can improve your financial standing and minimize administrative burdens, all of which empower physicians and benefit patients. The question is, what is the best legal structure for your medical practice?
Choosing the Right Legal Structure for Your Practice
Consider a few of the options, and what each one would mean for the administration of your medical practice.
Sole Proprietorship
Establishing your medical practice as a Sole Proprietorship is probably the easiest option, especially if you are a solo practitioner.
The quick and easy setup is appealing but be warned that setting up a Sole Proprietorship has its downsides. That’s because this business structure does not recognize any legal separation between the business and the business owner; in the eyes of the law, you and your practice would be indistinguishable. This means that any debts, liabilities, or obligations that the practice takes on become your personal debts, liabilities, and obligations. It also means that, if a lawsuit is brought against the practice, it could affect your personal assets, finances, and property. (And thus, your family’s financial well-being.)
Simply due to the high likelihood of lawsuits within the medical profession, especially malpractice cases, Sole Proprietorship is not recommended for most doctors. There is simply too much legal and financial risk.
LLC
Another option that’s available to medical practices is the Limited Liability Corporation or LLC. For those in private practice, this is often the best option. On the one hand, it provides a higher level of legal protection than the Sole Proprietorship. At the same time, LLCs are a bit easier to manage than some of the other legal structures that we’ll discuss momentarily.
One of the main reasons why the LLC for doctors is such a sensible option is that it allows some separation between the business and your personal assets. The upshot is that should a lawsuit be brought against your practice, all of your personal finances and properties are fully protected.
There are also potential tax incentives for choosing the LLC structure. LLCs offer a “pass-through” tax structure, meaning you’ll pay taxes as the business owner but the business itself will not owe anything. In other words, you can avoid the “double taxation” that other legal structures risk. And, in most cases, you will be able to avoid corporate tax rates.
Finally, LLCs offer plenty of flexibility. You can choose to be active in the management of your practice or bring in other partners to handle more of the day-to-day work. In other words, LLCs provide doctors with some control over just how much administrative oversight they have in the business.
PLLC
Alternatively, you could structure your practice as a Professional Limited Liability Company (PLLC).
In many ways, this structure resembles the LLC, including the pass-through tax option. The main distinction is that some states actually don’t allow you to form an LLC in a profession that requires professional licensure (and the medical service obviously qualifies). As such, the PLLC structure may be the best option.
Doctors may also opt to start a Professional Corporation (PC) but be warned that these businesses do not have the pass-through option. In other words, a PC is always taxed at the corporate tax rate, which may not be the most desirable option.
S-Corp
A final option for doctors to consider is the S-Corp.
S-Corps will allow you to enjoy the same pass-through tax benefits you’d get from an LLC. However, managing an S-Corp requires a little bit more hands-on effort, including financial disclosures, regular meetings of shareholders, and more.
Like the LLC, an S-Corp will offer certain legal protections, particularly in instances where a lawsuit is brought against the practice. Clearly, there are some perks, but for doctors who want something that’s a little more low-maintenance and easier to establish, the S-Corp may be a little too complicated.
Making a Wise Choice About Your Legal Structure
The average physician may have limited interest in the legal implications of practice ownership. And yet, choosing the right structure can be an important way to ensure the long-term viability of your practice, and the ease of managing it. Be mindful of the benefits of the LLC, in particular, while also taking the time to explore the other available options.
Health
Polaris Bank Sponsors Free Breast, Prostate Cancer Screenings
By Modupe Gbadeyanka
To commemorate World Cancer Day observed on Wednesday, February 4, 2026, Polaris Bank Limited is bankrolling free screenings for breast and prostate cancers across the country.
The financial institution partnered with a non-governmental organization (NGO) known as Care Organization and Public Enlightenment (COPE) for this initiative.
At least 100 women would be screened during the exercise, scheduled for Saturday, February 21, 2026, at the C.O.P.E Centre on 39B, Adeniyi Jones Avenue, Ikeja, Lagos, from 10:00 am to 2:00 pm.
The exercise will be conducted by trained health professionals and volunteers, ensuring participants receive both screening services and educational guidance on cancer prevention, self-examination, and follow-up care.
To participate in the free breast cancer screening programme, the applicants must be women, must be Polaris Bank account holders, and must have registered ahead of the day via bit.ly/BCS2026, with selection based on early and confirmed submissions.
Polaris Bank said the initiative was designed to promote awareness, screening, early detection, and preventive care, reinforcing its belief that access to health services is a critical foundation for individual and economic well-being.
The organization is already supporting an on-going free prostate cancer screening programme for 250 men aged 40 years and above across Nigeria.
The prostate cancer screening is being conducted at the Men’s Clinic, situated at 18, Commercial Avenue, Sabo, Yaba, Lagos, providing accessible, professional medical support for male participants seeking early detection and preventive care for prostate cancer.
Both initiatives (free breast and prostate cancer screenings) directly aligns with the United Nations Sustainable Development Goals, particularly SDG 3 (Good Health and Well-being) through improved access to preventive healthcare and early detection services, SDG 5 (Gender Equality) by prioritizing women’s health and empowerment, and SDG 17 (Partnerships for the Goals) through strategic collaboration with civil society organizations such as C.O.P.E to deliver community-centered impact.
Educational materials, community engagement sessions, and digital awareness campaigns will be deployed to reinforce key messages around early detection, lifestyle choices, and the importance of regular medical check-ups.
The Head of Brand Management and Corporate Communications for Polaris Bank, Mr Rasheed Bolarinwa, emphasised that early detection remains one of the most effective tools in the fight against cancer.
Health
NSIA Gets IFC’s Naira-financing to Scale Oncology, Diagnostic Services
By Adedapo Adesanya
International Finance Corporation (IFC), a subsidiary of the World Bank, and the Nigeria Sovereign Investment Authority (NSIA) have partnered to provide Naira-denominated financing to NSIA Advanced Medical Services Limited (MedServe), a wholly owned healthcare subsidiary of the country’s wealth fund.
Supported by the International Development Association’s Private Sector Window Local Currency Facility, this financing enables MedServe to scale critical healthcare infrastructure while mitigating foreign exchange risks. IFC is a member of the World Bank Group.
The funds will support MedServe’s expansion program to establish diagnostic centers, radiotherapy-enabled cancer care facilities, and cardiac catheterisation laboratories across several Nigerian states.
These centres will feature advanced medical technologies, including CT and MRI imaging, digital pathology labs, linear accelerators, and cardiac catheterisation equipment, thereby enhancing specialised diagnostics and treatment.
MedServe provides sustainable service delivery with pricing that matches local income levels, helping ensure broader access to affordable oncology care for low-income patients.
The initiative will deliver over a dozen modern diagnostic and treatment centers across Nigeria, create 800 direct jobs, and train more than 500 healthcare professionals in oncology and cardiology specialties.
The total project size is $154.1 million, with IFC contributing roughly N14.2 billion ($24.5 million) in long-tenor local currency financing, marking IFC’s first healthcare investment in Nigeria using this structure.
This comes as Nigeria advances its aspirations for Universal Health Coverage. This partnership provides an opportunity to leverage private investment to complement government efforts to expand oncology care and diagnostic services.
IFC’s provision of long-tenor Naira financing addresses a significant market gap and unlocks institutional capital for healthcare infrastructure with strong development upside while MedServe’s co-location strategy with public hospitals maximises capital efficiency and strengthens the public-private ecosystem, establishing a replicable platform for future investment.
“This partnership with IFC represents a significant milestone in NSIA’s commitment to strengthening Nigeria’s healthcare ecosystem through sustainable, locally anchored investment solutions,” said Mr Aminu Umar-Sadiq, managing director & chief executive of NSIA.
He added, “By deploying long-tenor Naira financing, we are addressing critical infrastructure gaps while reducing foreign exchange risk and ensuring that quality diagnostic and cancer care services are accessible to underserved communities. MedServe’s expansion underscores our belief that commercially viable healthcare investments can deliver strong development impact while supporting national health priorities.”
“This ambition is consistent with our broader vision for Africa, one where resilient health systems and inclusive growth reinforce each other to deliver long-term impact across the continent,” said Mr Ethiopis Tafara, IFC Vice President for Africa.
Health
Lagos Steps up Mandatory Health Insurance Drive
By Modupe Gbadeyanka
Efforts to entrench mandatory health insurance through the Ilera Eko Social Health Insurance Scheme in Lagos State have been stepped by the state government.
This was done with the formal investiture of the Commissioner for Health, Professor Akin Abayomi, and the Special Adviser to the Governor on Health, Mrs Kemi Ogunyemi, as Enforcement Leads of the Lagos State Health Scheme Executive Order and ILERA EKO Champions.
The Commissioner described the recognition as both symbolic and strategic, noting that Lagos is deliberately shifting residents away from out-of-pocket healthcare spending to insurance-based financing.
“We have been battling with how to increase enrolment in ILERA EKO and change the culture of cash payment for healthcare. Insurance is a social safety net, and this mindset shift is non-negotiable,” he said.
He recalled that Lagos became the first state to domesticate the 2022 National Health Insurance Authority (NHIA) Act through an Executive Order issued in July 2024, making health insurance mandatory. He stressed that the decision reflected the Governor’s strong commitment to healthcare financing reform, adding, “When Mr. Governor personally edits and re-edits a document, it shows how critical that issue is to the future of Lagosians.”
Mr Abayomi also warned against stigmatisation of insured patients, describing negative attitudes towards Ilera Eko enrolees as a major barrier to uptake. “If someone presents an Ilera Eko card and is treated as inferior, uptake will suffer. That must stop,” he said, pledging to prioritise insurance compliance during facility inspections. “The key question I will keep asking is: ‘Where is the Ilera Eko?’”
In her remarks, Mrs Ogunyemi, said the enforcement role goes beyond a title, stressing that the health insurance scheme is now law.
“This is about Universal Health Coverage and equitable access to quality healthcare for everyone in Lagos State,” she said, noting that ILERA EKO aligns with the state’s THEMES Plus Agenda.
She commended the Lagos State Health Management Agency (LASHMA) for aggressive sensitisation efforts across the state, saying constant visibility was necessary to address persistent gaps in public knowledge. “People are still asking, ‘What is Ilera Eko?’ ‘Where do I enrol?’ Those questions tell us the work must continue,” she said.
She urged all directors and health officials to mainstream Ilera Eko promotion in every programme and engagement, emphasising that responsibility for health insurance advocacy does not rest with LASHMA alone. “When people come with medical bills, the first question should be: are you insured?” she said, adding that early enrolment remains critical as premiums rise over time.
Earlier, the Permanent Secretary of LASHMA, Ms Emmanuella Zamba, said the investiture marked a critical step in positioning leadership to drive enforcement of the Executive Order across the public service.
“What we are undertaking is pioneering in Nigeria. All eyes are on Lagos as we demonstrate how mandatory health insurance can work,” she said.
Ms Zamba disclosed that enforcement nominees across Ministries, Departments and Agencies have been trained, with a structure in place to ensure compliance beyond the health sector.
According to her, “This initiative cuts across the entire public service, particularly public-facing MDAs, in line with the provisions of the Executive Order.”
She explained that the formal designation of the Commissioner and the Special Adviser as Enforcement Leaders was meant to strengthen compliance, alongside the Head of Service, while also recognising their consistent advocacy for universal health coverage. “This decoration is to amplify their roles and appreciate the leadership they have shown,” she said.
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