Memorandum of Understanding for Wellness Practices

What a good one includes

• A clear definition of the joint venture, shared space arrangement, or referral network being established.
• A detailed breakdown of how rent, utilities, marketing expenses, or workshop revenues are split and paid.
• Specific guidelines on booking shared treatment rooms, managing quiet hours, and maintaining clean common areas.
• A protocol outlining how client files are stored securely and how privacy regulations are maintained within the shared space.
• Explicit guidelines stating that referrals are always based on clinical appropriateness and that no financial kickbacks are involved.
• A clear process for how a practitioner can gracefully exit the agreement, including required notice periods and client transition plans.

Common mistakes to avoid

• Splitting expenses based on verbal handshakes rather than writing down exact percentages and due dates leads to resentment and unpaid bills.
• Failing to address how shared Wi-Fi, filing cabinets, or waiting areas protect sensitive client data can lead to serious legal compliance violations.
• Assuming the partnership will last forever without planning how to split assets or notify clients when someone leaves causes messy disruptions to care.
• Treating an MOU as a substitute for a formal sublease or legal partnership agreement can leave you unprotected if major disputes arise over property damage.

Frequently asked questions