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Is it time to consider a liability shield?

R Kenny

    New Jersey Medicine : the Journal of the Medical Society of New Jersey
    |December 1, 1995
    PubMed
    Summary
    This summary is machine-generated.

    New Jersey physicians should explore legally protected business structures. Professional associations may offer superior liability protection compared to sole proprietorships, partnerships, LLCs, and LLPs.

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    Area of Science:

    • Medical Practice Management
    • Legal Structures for Healthcare Professionals

    Background:

    • Physicians often operate as sole proprietors or partners, exposing them to personal liability.
    • New legal structures like Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) have emerged.
    • The optimal legal structure for physician practices remains a critical consideration for risk management.

    Purpose of the Study:

    • To evaluate the advantages of different legal structures for New Jersey physicians.
    • To determine the most suitable entity for protecting physicians from professional liability.

    Main Methods:

    • Comparative analysis of legal structures available to physicians.
    • Review of liability protections offered by sole proprietorships, partnerships, LLCs, LLPs, and professional associations.

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    Main Results:

    • Unprotected partnerships and sole proprietorships offer minimal liability protection.
    • While LLCs and LLPs provide some protection, they may not be the optimal choice.
    • Professional associations are identified as a potentially superior legally protected structure.

    Conclusions:

    • New Jersey physicians should carefully consider legally protected structures.
    • Professional associations may offer the most robust liability protection for physicians.
    • Choosing the right legal entity is crucial for safeguarding physician assets.