Asset Purchase Agreement Work In Progress

Each firm sale is unique, and these are just a few of the problems that arise if you and the other party negotiate the best way to structure the asset sales contract and treat your patients. Whether you`re buying or selling a practice, you should consult an experienced consultant to guide you on how best to structure the transaction. Another approach is for the selling doctor would keep the fee prepaid, and then the buying doctor would charge the selling doctor for the work on the patient. While this is logistically simpler than assessing the tax, it can lead to disputes over the need to process and the amount of the invoice after completion. This is especially true when you have a different approach to the other doctor and change aspects of the treatment plan during treatment. The drawbacks of this approach are that depending on the number of prepaid patients, it can take a long time to check each patient`s chart, project the workload to be done and reduce it to a percentage. Sometimes, even during treatment, there are contingencies that the parties are not aware of, or planned contingencies do not occur. Therefore, if you buy a practice, you may end up doing more work than you would expect for the same amount of money. If you are the seller, you can in the end give up more of the tax than you need.

If you want to buy a practice and have a clean break with the seller, or if you sell the practice because you are retiring or have a disability, this option is usually necessary. Under these circumstances, the parties will determine how much work has been done on each patient in relation to the work they expect to be completed. Second, the parties generally adjust the purchase price in the asset purchase contract to pay tribute to the buyer for the work he or she must do to patients who have been paid in advance for the services. However, if the selling physician does not remain associated, this approach may be more complicated. They should provide time to the physician and work with the sales physician and with the patient`s schedule to ensure appropriate and timely care.

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