Beyond the professional fee: basic legal issues for physicians investing in the technical side of healthcare...

As reimbursement for professional services shrinks compared with physicians' educational debt and practice expenses, physicians are looking for additional sources of revenue to supplement their practice income. A natural option to consider is investment in healthcare entities or equipment in order to share in the technical fees generated by such entities or equipment. Part 1 of this article reviewed relevant legal authorities and common investment opportunities. Part 2 looks at issues that physician investors face-specifically, the choice of whether to invest in a separate entity or to expand an existing practice to include a technical service, hospital investors, and service agreements.