Medical Practice Acquisition differs from buying a large hospital and involves the purchase and sale of small private practices (e.g., dental offices, aesthetic centers, family medicine cabinets). Here, the main asset is often not real estate, but the patient base (Goodwill) and the reputation of a specific doctor. For an investor or a doctor wishing to start their own practice, buying an existing business is less risky than starting from scratch, although legal risks are specific here too. How to legally assess the value of a patient base? How to ensure staff retention? How to transfer a small-scale license? This service focuses on transactions of small and medium-sized medical businesses.
Specialists on Legal.ge offer tailored legal services for acquiring small practices:
- Asset valuation and audit: Legal verification of tangible (equipment, furniture) and intangible (brand, patient list) assets of the practice.
- Purchase agreement: Drafting a contract that includes specific conditions, such as consultations by the former owner during the transition period.
- Non-Compete agreement: An agreement that the selling doctor will not open a competing practice nearby for a specified period.
- Lease rights transfer: Re-registering the commercial space lease agreement to the new owner, which is critical for location-based practices.
- Patient notification: Legal procedure for notifying patients of the change in ownership and updating consent for data processing.
A practical example is buying a dental clinic where patients visit a specific doctor. If that doctor leaves, the business loses value. Therefore, the lawyer prepares "retention mechanisms" in the contract. A common problem also arises when the practice is registered under an individual (Sole Proprietor) — in this case, the license does not transfer, and a new legal entity must be created and the license obtained from scratch. Another nuance is equipment leasing — does the lease obligation transfer to the new owner?
In Georgia, the regulation of small medical practices is based on the Law "On Medical Practice" and the Civil Code. Recommendations from the Personal Data Protection Inspector strictly define how patient histories should be transferred from one doctor to another to avoid breaching confidentiality.
Working with a specialist ensures you are not buying "air." The lawyer checks if the patient base is real and if the equipment is free from liens. They will also assist in negotiations to ensure the price reflects all risks.
Legal.ge is your advisor in small medical business. Acquiring a practice is a great career start, but it requires careful legal calculations. Our experts will help ensure your new practice is successful from day one.
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