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What Are the Best Legal Structures for Your Medical Practice Business?

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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.

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Jacaranda Gets Funds to Expand Affordable Maternal Healthcare in Kenya

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Jacaranda Maternity

By Modupe Gbadeyanka

To expand affordable healthcare in Kenya, Swedfund has invested about $600,000 into Jacaranda Health Limited (Jacaranda Maternity) to support innovations in neonatal intensive care and strengthen Jacaranda’s ability to provide life-saving services to underserved populations.

Jacaranda Maternity provides high-quality maternal health care at more affordable pricing than typical private providers, focusing on women in Nairobi’s low- and middle-income communities.

The new funding will support the opening of new hospitals, upgrading of neonatal care, and improvements to existing facilities.

Maternal and newborn health outcomes in Kenya remain a challenge, with maternal mortality still high despite improvements in skilled birth attendance.

Public health facilities play a central role but face capacity constraints, while access to reliable, quality care varies across regions and income groups.

Private healthcare providers offering essential maternity services at accessible price points can complement public provision.

Jacaranda Maternity aims to expand its network to six hospitals to achieve financial sustainability while scaling its impact. The healthcare provider is a recognised leader in promoting women’s health, with 71 percent of its staff being women, and a track record of effective environmental and social management.

“This investment will help Jacaranda Maternity provide life-saving care to more women and families while furthering Swedfund’s mission to promote inclusive and sustainable healthcare,” a Senior Investment Manager at Swedfund, Audrey Obara, said.

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Nigeria Secures $350,000 FAO Support to Tackle Rising Bird Flu

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By Adedapo Adesanya

Nigeria will get a $350,000 intervention from the Food and Agriculture Organisation of the United Nations (FAO) to support its response to the ongoing outbreak of Highly Pathogenic Avian Influenza (bird flu) and strengthen the country’s animal health systems.

An agreement was reached on Wednesday during a strategic meeting between the Minister of Livestock Development, Mr Idi Mukhtar Maiha, and the FAO Representative to Nigeria and the Economic Community of West African States, Mr Hussein Gadain, in Abuja.

The intervention, approved under FAO’s Technical Cooperation Programme, will support disease containment efforts in 11 affected states and enhance surveillance, coordination and response mechanisms to prevent further spread of the disease.

Speaking during the meeting, Maiha said effective disease control remains critical to improving livestock productivity and protecting the livelihoods of farmers across the country.

He explained that factors such as drought, scarcity of feed, interaction between livestock and wildlife, as well as cross-border movement of animals have contributed to the spread of diseases in some areas.

“We must continue to strengthen our animal health systems and build the capacity required to respond effectively to disease outbreaks. Our collaboration with FAO will help protect livestock assets, improve productivity and support the broader transformation of the sector,” the minister said.

Mr Gadain commended the federal government’s commitment to the development of the livestock sector and assured that FAO would continue to provide technical support to Nigeria.

He stressed the need to strengthen veterinary services at the state and community levels, improve early detection of diseases and promote biosecurity practices among livestock farmers.

The meeting also reviewed progress on the global campaign to eradicate Peste des Petits Ruminants, a highly contagious disease that affects sheep and goats.

To advance the initiative, the ministry plans to convene a national technical meeting involving veterinary institutions, researchers and practitioners to review Nigeria’s eradication strategy and address gaps in vaccine supply.

As part of preparations, the ministry will engage the National Veterinary Research Institute to assess its vaccine production capacity while exploring other options for vaccine procurement to meet national demand.

Both parties also agreed to accelerate Nigeria’s access to financing under the Pandemic Fund through the One Health approach in collaboration with the Nigeria Centre for Disease Control and the Federal Ministry of Health to strengthen preparedness and response to zoonotic diseases.

Plans are also underway for the Director-General of FAO to participate in the Antimicrobial Resistance Conference scheduled for June 2026 in Abuja, where President Bola Tinubu is expected to be recognised as the African Champion for the eradication of Peste des Petits Ruminants.

The meeting further agreed to inaugurate a Livestock Donor Working Group to coordinate development partner support and advance key initiatives, including the development of a national feed and fodder strategy aimed at improving productivity and sustainability in the livestock sector.

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Chimamanda: Euracare Raises Concerns Over MDCN Investigation Panel Process

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By Aduragbemi Omiyale

A Lagos-based healthcare facility currently in the limelight, Euracare Multi-Specialist Hospital, has faulted the outcome of the investigation panel of the Medical and Dental Council of Nigeria (MDCN) on the death of a 21-month-old Nkanu Nnamdi Esege, son of a renowned author, Chimamanda Ngozi Adichie.

The toddler died some weeks ago after an alleged overdose of sedative propofol, with the family alleging medical negligence.

This week, the panel suspended the two doctors of Euracare, Dr Tosin Majekodunmi and Dr Titus Ogundare.

Reacting to the development in a statement, the hospital claimed it observed “a number of serious concerns that have arisen in the course of these proceedings.”

In the statement made available to Business Post, Euracare emphasised that it vouches for the “professionalism and integrity of our clinical team,” pointing out that “certain established processes and protocols have not been followed in the manner required” during the probe.

While it empathised “with the family of Master Nkanu Nnamdi Esege” over the unfortunate incident, the healthcare firm said there was a “serious breach” by the investigators that “cannot go unaddressed.”

It identified this breach as the disclosure of “matters covered by patient and institutional confidentiality” outside the appropriate channels.

Below is the full statement from Euracare;

Our attention has been drawn to widespread media reports concerning the interim suspension orders and other findings issued by the Medical and Dental Practitioners Investigation Panel against thirteen doctors, two of whom are our clinical staff members in connection with the ongoing proceedings relating to the death of Master Nkanu Nnamdi Esege. We remain fully committed to cooperating with all relevant regulatory and judicial authorities in the course of their inquiries.

We however wish to place on record our confidence in the professionalism and integrity of our clinical team. Dr. Tosin Majekodunmi and Dr. Titus Ogundare who are experienced professionals whose records of service to patients in Nigeria span many years. Both doctors have, in their respective careers, contributed meaningfully to the delivery of quality healthcare to Nigerian patients at a standard comparable to what is obtainable in the world’s leading medical facilities.

In the interest of transparency, since the commencement of this matter, we have conducted a thorough internal review of the clinical events in question, in line with our clinical governance standards and best practices. We have actively demonstrated our commitment to transparency and will continue to engage openly with all inquiries directed at us.

We are also compelled to draw attention to a number of serious concerns that have arisen in the course of these proceedings. It is our position that certain established processes and protocols have not been followed in the manner required. We have further noted, with deep concern, that matters covered by patient and institutional confidentiality appear to have been disclosed outside the appropriate channels, and we consider this a serious breach that cannot go unaddressed.

We wish to state that we stand by the principles of equality, fairness, and good governance. Every party in this matter, including our institution and our staff, is entitled to a process that is conducted with rigour, impartiality, and respect for the rules that govern it. We will be raising these concerns through the appropriate legal and regulatory channels.

We continue to empathize with the family of Master Nkanu Nnamdi Esege. The loss of a child is a grief without measure, and we carry that awareness in everything we say and do in relation to this matter.

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