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.
By Modupe Gbadeyanka
The decision of the management of SUNU Health Nigeria Limited to adopt the strategy of placing the enrollee and customer at the heart of its operations has started to pay off.
The company was recently announced as Most Customer-Focused Health Insurance Company of the Year at the Customer Service Standard Magazine Awards 2025.
The recognition underscored the company’s success in translating its dedication into tangible enrollee satisfaction and superior market service at the Nigerian Health Maintenance Organisation (HMO) landscape.
It also highlights the organisation’s dedicated efforts in streamlining claims processing, enhancing access to quality healthcare providers, and maintaining transparent, responsive communication channels with its diverse client base across Nigeria.
The accolade further serves as a powerful testament to the successful integration of digital solutions and human-centric service models at SUNU Health.
It positions the firm as a leader not only in providing robust health plans but also in delivering the supportive, personalized care that enrollees truly value.
“Clinching the Most Customer-Focused Health Insurance Company of the Year award is not just an honour; it is a validation of the core philosophy that drives every member of the SUNU Health team.
“We believe that healthcare is fundamentally a service industry, and our success is measured by the well-being and satisfaction of our enrollees,” the chief executive of SUNU Health, Mr Patrick Korie, commented.
“This award reinforces our resolve to continuously innovate and set new benchmarks for customer experience in the Nigerian health insurance sector.
“Our commitment to providing accessible, high-quality, and seamless healthcare solutions remains our top priority as we move into the new year (2026),” he added.
By Adedapo Adesanya
Nigeria has launched its first nationally representative survey on antimicrobial resistance to generate critical data to guide evidence-based policies, improve patient outcomes, and strengthen health system resilience.
Antimicrobial resistance occurs when bacteria, viruses, fungi, and parasites evolve to resist treatment, making infections harder to cure.
As a result, surveillance is essential to track resistance patterns, identify priority pathogens, and guide targeted interventions and with support from the World Health Organization (WHO) and other partners, the initiative marks a milestone in the country’s public health response.
Nigeria becomes the third country globally to partner with WHO on a national antimicrobial resistance survey. having been selected based on the country’s strong commitment to AMR surveillance, its updated WHO Nigeria NAP 2.0, and readiness to expand laboratory and data systems.
Africa’s most populous country ranks 20th globally for age-standardized mortality due to antimicrobial resistance . In 2019, an estimated 263,400 deaths in Nigeria were linked to it—more than the combined deaths from enteric infections, tuberculosis, respiratory infections, maternal and neonatal disorders, neglected tropical diseases, malaria, and cardiovascular diseases.
Globally, resistant infections in tertiary care settings cost between $2,371 and $29,289 per patient episode, extend hospital stays by an average of 7.4 days, and increase mortality risk by 84 per cent.
The survey will see the establishment of a national baseline on antimicrobial resistance prevalence to monitor interventions, assess the distribution, burden (morbidity, mortality, DALYs, cost), and diversity of AMR across regions and populations, as well as contribute to the global target of reducing AMR deaths by 10 per cent by 2030, in line with the political declaration endorsed at the 79th United Nations General Assembly in 2024.
It also seeks to strengthen routine antimicrobial resistance surveillance, including diagnostics, sample referral systems, and laboratory capacity.
Using WHO’s standardized methodology, the survey will run for 12–15 months and cover 40–45 randomly selected health facilities nationwide. Patients with suspected bloodstream infections (BSIs) will be identified using standard case definitions, and blood samples will be analysed in quality-assured laboratories.
Data will be collected across all age groups, covering clinical, demographic, laboratory, financial, and outcome indicators. Follow-up will occur at discharge, 28 days, and three months post-infection. The survey will sample approximately 35,000 patients suspected of BSIs to obtain around 800 isolates of the most common pathogens.
Dr Tochi Okwor, Acting Head, Disease Prevention and Health Promotion, Nigeria Centre for Disease Control and Prevention (NCDC) said, “With WHO’s support, we are confident the survey will generate the evidence needed to protect public health.”
WHO Representative in Nigeria, Dr Pavel Ursu, reaffirmed WHO’s commitment stating that ,“Nigeria is taking a decisive step toward combating AMR with an approach grounded in data, science, and measurable impact. This survey will provide the clarity needed to drive smarter policies, stronger surveillance, and better patient outcomes. Nigeria is laying the foundations for a resilient health system, one that protects lives, strengthens trust, and ensures that essential medicines remain effective for future generations.”
Adding her input, Dr Laetitia Gahimbare, Technical Officer at WHO Regional Office for Africa, added:“Strengthening surveillance enhances Nigeria’s capacity to detect and respond to AMR threats, supporting better patient outcomes, reinforcing health security, and building a resilient system.”
Professor Babatunde Ogunbosi, Paediatric Infectious Diseases Specialist at University College Hospital, Ibadan, highlighted the broader impact:, “This survey is about more than data. It’s about building national capacity for research, diagnostics, and policy. It integrates science into public health decision-making.”
By Modupe Gbadeyanka
One of the leading Health Maintenance Organisations (HMOs) in Nigeria, SUNU Health, has said its philosophy is proactive wellness, noting that this was why it recently partnered with The Divine Physician and St. Luke Catholic Chaplaincy Centre for a community health initiative.
The chief executive of the company, Dr Patrick Korie, said, “SUNU Health’s vision extends far beyond merely offering health packages and insurance.”
“We are fundamentally interested in proactive wellness—preventing illness rather than just treating it. This annual exercise is a crucial part of that commitment, and we will continue to champion it for as long as we exist,” he stressed.
The medical practitioner led the company’s annual Health Walk in Lagos on Saturday, November 8, 2025. The event drew hundreds of health enthusiasts, including the Chaplain of the centre, Rev Fr. John Okoria SJ.
His active participation reinforced the spiritual and moral commitment to holistic well-being, proving crucial in mobilizing staff and community members, thereby ensuring the vital wellness message reached a broad and deeply engaged audience.
The health walk covered several major streets in Lagos, starting from Ishaga Road and navigating through Itire Road, Randle Avenue, Akerele, Ogunlana Drive, and Workers Street before concluding back at the starting point. Following the vigorous walk, participants engaged in a session of high-energy aerobics and other outdoor exercises, reinforcing the day’s focus on fitness.
“We are delighted to champion this vital health initiative alongside the Catholic Chaplaincy Centre LUTH/CMUL. The turnout was truly delightful, reflecting the community’s deep desire to embrace wellness.
“Collaborations like this amplify our message and commitment to the Nigerian community,” the Brand and Corporate Communications Lead at SUNU Health, Mr Samuel Olayemi, stated.
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