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 Adedapo Adesanya
The National Health Insurance Authority (NHIA) says the number of Nigerians enrolled in health insurance has risen to more than 22 million.
The Director-General of NHIA, Mr Kelechi Ohiri, said this resulted from the implementation of the mandatory health insurance, which has gained momentum nationwide.
He said this on Wednesday at the Annual General Meeting of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos.
Mr Ohiri said enrolment had increased to 22.03 million, representing a 35 per cent year-on-year growth, attributing this to stronger collaboration with state social health insurance agencies, ministries, departments and agencies, organised labour, employers, the private sector, and the gradual implementation of the mandatory health insurance provisions of the NHIA Act.
He said that the country had moved beyond policy formulation to delivering measurable improvements in healthcare access, service quality and consumer protection in line with the federal government’s health sector reform agenda.
According to him, Nigeria already has the necessary policies and legislation to achieve Universal Health Coverage, positing that the key challenge was effective implementation.
“The decisive variable is now implementation- consistent, rigorous and accountable execution that converts political commitment into healthcare access for real Nigerians,” he said.
Mr Ohiri said that the transition from the former National Health Insurance Scheme to the NHIA had strengthened regulation, consumer protection, accountability and strategic purchasing, while providing the legal and operational framework for achieving Universal Health Coverage.
He added that improving the experience of enrollees remained central to the Authority’s reform agenda.
According to him, NHIA has strengthened its complaints management system, introduced faster resolution timelines, and intensified compliance monitoring of Health Maintenance Organisations (HMOs) and healthcare providers.
He further added that NHIA had sanctioned facilities that failed to meet the required standards, adding that his organisation had resolved 3,878 complaints, representing an 87 per cent resolution rate, while 95 per cent of the cases were concluded within prescribed timelines.
Mr Ohiri noted that more than N14.2 million had been refunded to enrollees, while non-compliant healthcare facilities had been sanctioned.
He said NHIA had also introduced service standards, including a one-hour treatment commencement target for enrollees requiring urgent care, to improve access to timely and quality healthcare services.
The NHIA boss further disclosed that capitation payments to healthcare providers had been increased by 93 per cent.
He said fee-for-service reimbursements rose by 378 per cent to enable providers to invest more in personnel, equipment and infrastructure.
According to him, 7,592 healthcare facilities have been assessed under the SafeCare quality framework as part of efforts to institutionalise continuous quality improvement across the country.
Mr Ohiri also highlighted interventions targeted at vulnerable groups, including support for more than 48,500 pregnant women, expanded maternal and newborn healthcare services, the Vulnerable Group Fund, and improved access to healthcare for pensioners and retirees.
He said Universal Health Coverage could only be achieved if every Nigerian, regardless of income or location, had access to quality healthcare services.
By Modupe Gbadeyanka
The new one-hour authorisation response time ultimatum policy introduced by the National Health Insurance Authority (NHIA) has received the full backing of SUNU Health Nigeria Limited.
This policy was introduced by the agency to ensure enrollees get prompt approval codes to access care.
Healthcare service providers have been urged to report any Health Maintenance Organisation (HMO) that violates this initiative through an email, with the HMO in copy and a timestamp attached as evidence of the request. They may proceed to offer services to enrollees thereafter.
Speaking at the company’s second-quarter Providers’ Forum for the Lagos-Ogun region in Lagos recently, the chief executive of SUNU Health, Dr Moyosore Olomola, expressed optimism that this policy would improve healthcare delivery in the country, especially for enrollees, who crave quality service.
At the event themed Improving Quality and Access to Care Through Stronger Provider Network, and held at the Nigerian Institute of Medical Research (NIMR) in Yaba, Lagos, Mr Olomola reaffirmed the HMO’s commitment to operating within legal and operational frameworks to guarantee adequate care for enrollees.
“Access to care and quality of care remain key priorities in our healthcare systems. We know quite well that deliberate collaboration, strategic partnerships, and a shared commitment to excellence are required to achieve these priorities.
“A strong provider network is doubtless the backbone of any effective healthcare system. It ensures that our mutual enrollees receive the right care, at the right time, in the right place, and at the right price,” Mr Olomola, represented at the programme by the organisation’s Chief Operating Officer (COO), Dr Faith Nwachi, stated.
He further assured that SUNU Health would strictly adhere to the one-hour authorisation limit, stressing that this aligns seamlessly with one of the organisation’s core values—promptness and its corporate slogan, Humanity is the centre of our initiatives.
In a bid to further improve access and quality of care, SUNU Health also demonstrated its new operational software and Mobile app, aptly named SUNU Legacy.
Also speaking at the event, the NHIA Lagos State Coordinator (Ikeja), Dr Bethuel-Kasimu Abraham, noted that the forum’s expected outcome is to significantly reduce delays in accessing medical care.
Other key expectations include ensuring continuity of care, improving patient outcomes, and strengthening accountability among HMOs.
Addressing specific pain points faced by enrollees, the NHIA Ogun State Coordinator, Mr Dare Adefeso, acknowledged that the agency had received complaints regarding out-of-stock drugs and the discrimination of enrollees by certain providers.
He affirmed that the NHIA is actively addressing these issues, stressing that moving forward, every facility must ensure enrollees are properly catered to regardless of their status, provided they have an active health insurance plan.
Corroborating the long-standing legacy of SUNU Health, the Ogun State Director of the National Orientation Agency (NOA), Mrs Aishat Tiamiyu, shared that her agency is responsible for public information dissemination and has been enrolled with SUNU Health for over 25 years.
Commending the HMO’s stellar service over two decades, she called for the immediate enrollment of new NOA staff into the scheme.
The Providers’ Forum remains one of the strategic channels employed by SUNU Health to consistently engage healthcare providers, understand their operational challenges, introduce new software updates, and solidify partnerships aimed at fostering premium healthcare delivery across Nigeria.
By Aduragbemi Omiyale
The National Agency for Food and Drug Administration and Control (NAFDAC) has announced the recall of a sexual enhancement product known as WAP Sensual Enhancement Capsules.
In a statement on Monday, the Nigerian agency disclosed that the recall is due to “undeclared pharmaceutical ingredients” in the product, whose country of origin is unknown, but is marketed and distributed online in the US through eBay.
It was emphasised that the recall is being “voluntarily” made by the manufacturer, Best Supplements Best Prices Company.
The detection of the undeclared pharmaceutical ingredients was made by the US Food and Drug Administration (FDA).
Laboratory analysis by the US FDA revealed that the product contained undeclared sildenafil, tadalafil, and flibanserin, which were not mentioned on the product label. Such substances may include phosphodiesterase type-5 (PDE-5) inhibitors or related compounds commonly used for the treatment of erectile dysfunction, the statement by NAFDAC stated.
Sildenafil and tadalafil are ingredients in FDA-approved prescription drugs used to treat erectile dysfunction.
It was noted that these undeclared ingredients may interact with nitrates found in some prescription drugs, such as nitroglycerin, and may lower blood pressure to dangerous levels. Consumers with diabetes, high blood pressure, high cholesterol, or heart disease often take nitrates.
Flibanserin is the active ingredient in an FDA-approved prescription drug used to treat low sexual desire in women. Flibanserin can cause drowsiness, sedation, dangerously low blood pressure, and fainting, especially when combined with alcohol.
Consumers have been encouraged to report compromised products (medicines or medical devices) to the nearest NAFDAC office, call 0800-162-3322, or send an email to sf******@********ov.ng.
