Cost Sharing Agreements

We have found that many clinics don’t have a formal cost sharing agreement in place, or that it is out of date. Verbal agreements are useful only until differing opinions lead to conflict.

Typical questions addressed in a cost sharing agreement are:

• Who is the signatory on the lease and how, or is this responsibility being shared?
• What happens in the event of a physician’s departure? What happens to their staff, patients and their portion of overhead costs?
• What provisions are in place in the event of a physician’s sudden illness or disability?

Primary Care Advisory works with the physician group to develop a Memorandum of Understanding which will address these issues (and others that may arise) in a clear and concise manner and is review by the group’s legal advisor.