Beyond the Professional Fee: Basic Legal Issues for Physicians Investing in the Technical Side of Healthcare Services, Part 2

by R. Christopher Raphaely
As reimbursement for professional services shrinks compared with physicians? educational debt and practice expenses, physicians are looking for additional sources of revenue to supplement their practice income. A natural option to consider is investment in healthcare entities or equipment in order to share in the technical fees generated by such entities or equipment. Part 1 of this article reviewed relevant legal authorities and common investment opportunities. Part 2 looks at issues that physician investors face?specifically, the choice of whether to invest in a separate entity or to expand an existing practice to include a technical service, hospital investors, and service agreements.;