[Business Case] Supporting French Physicians in the Creation of Their Medical Practice Company

The Project

Several specialist physicians practicing independently wished to combine their activities within a single medical structure to pool their resources and investments and to develop a coordinated healthcare offering.

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Our law firm advises independent healthcare professionals on the establishment, governance, and transfer of their practice structures.

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The Challenges

While the project was driven by a coherent medical project, it raised sensitive legal issues:

• Ensuring an equitable distribution of their medical practice company’s share capital and responsibilities among partners;
• Facilitating the inclusion of new partners, whether as majority or minority shareholders, to support growth;
• Maintaining a cohesive healthcare organization and consistent quality while preserving each medical practitioner’s independence;
• Identifying specific regulatory constraints that could impact the group medical practice.

Our Advice

In light of these challenges, our law firm supported the founding physicians across all aspects of structuring their group medical practice, including:

• Choice of legal structure and tax implications: Given the project’s objectives and governance requirements, the Société d’Exercice Libéral par Actions Simplifiée (SELAS)—a French simplified joint-stock company for regulated professions—was selected as the most suitable corporate form for the medical practice.
• Governance structuring: Establishment of a strategic committee and clear definition of the powers of the SELAS’s managing physicians, along with rules for dispute prevention.
• Remuneration plan: Implementation of compensation rules for practicing partners, whether or not they held a management role, aligned with the business plan.
• Framework for new partners: Creation of clear processes for admitting new partners and potential exits, ensuring the firm’s growth capacity.
• Rules for joint medical practice: Guidelines for using shared resources, professional conduct, continuity of care, and compliance with medical ethics, particularly patient confidentiality.
• Legal documentation: Drafting of all formal agreements and organizational documents in compliance with the professional rules applicable to physicians in private practice and to healthcare practice companies: articles of association, shareholders’ agreement including governance and transfer clauses, and internal regulations.
• Implementation support: Assistance with the company’s formation and compliance with formalities required by the Physicians Professional Board (Conseil de l’Ordre des médecins).
• Regulatory analysis: Identification of constraints applicable to the SELAS’s medical activities that could affect its development or the projects of the founders, such as hiring associates (collaborateurs), opening secondary locations, online communication, and cooperation with other healthcare professionals.

The Outcome

In collaboration with a tax law colleague, we provided the founding partners with comprehensive, tailored support—from the legal structuring phase to full implementation. Today, the practice is thriving and welcoming new physicians, both as partners and associates.

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