Medical Practice Memorandum of Understanding

What a good one includes

• A clear definition of the collaboration's scope, detailing exactly which medical services, patient demographics, or clinical programs are included.
• A detailed breakdown of each party's contributions, including financial capital, physical medical equipment, office space, and specialized staff.
• A governance structure outlining how clinical, operational, and financial decisions will be made and who holds final clinical authority.
• An explicit framework for revenue sharing, expense allocation, billing procedures, and the management of shared practice overhead.
• Provisions addressing patient privacy compliance under HIPAA, electronic medical record access, and the maintenance of separate malpractice insurance policies.
• Clear timelines for the collaboration’s duration, alongside a structured exit strategy or transition plan if either party decides to withdraw early.

Common mistakes to avoid

• Failing to explicitly state whether the MOU is legally binding or merely an expression of intent, which can lead to unexpected litigation.
• Ignoring the protocols for patient record ownership and transfer, creating severe regulatory compliance issues if the partnership dissolves.
• Glossing over the specifics of billing under different provider numbers, resulting in insurance claim rejections or compliance audits.
• Neglecting to establish a formal dispute resolution process, leaving the practice vulnerable to gridlock or public legal battles.

Frequently asked questions