Physician Partnership Breaks Up after More Than a Decade
Three physicians practice together for many years, but over time it is evident that one of the physicians is the “rainmaker” of the practice due to his innovative approaches. He brings more income into the partnership than the other physicians combined.
The most financially successful physician informs his partners they can no longer practice in “his office.” The two partners bring a lawsuit for valuation of the practice. Their attorney recommends mediation because the original partnership agreement is both inadequate and incomplete.
Key Issue
The ousted physicians demand damages and an accounting of income so that they will each receive a one-third share.
Other Issues for the Mediator to Consider
- How should the partnership agreement be applied to the breakup?
- Absent any language regarding dissolution in the agreement, should payment be made on a basis of equity?
- How much time do the parties wish to devote to the dispute rather than to practicing medicine?
- How should legal fees be capped?
- What are the issues regarding confidentiality in dealing with patients' records?
Process
James Morris facilitates three days of discussion over the course of one month. All specific issues are identified and discussed.
Outcome
The three physicians reach a confidential financial settlement, including non-compete covenants in specific areas. All issues are resolved.
Published: 3/3/2009