ABA & Healthcare
Your ABA clinic is not one business, so stop running it on one LLC
By Tzvi "LLC" Weiser·
ABA is one of the fastest growing corners of healthcare, and most of the operators riding that wave run everything through one LLC. The clinic, the staff, the lease, and very often the building itself, all in a single entity. It works right up until the day it does not, and in healthcare that day tends to be expensive.
Risk lives where the people are. Employment claims, a client incident, a billing dispute with a payor, a regulatory action. Those attach to the operating company because that is where the activity happens. Now ask what else is sitting in that same company. If the answer is your real estate and your accumulated cash, then a single claim against operations can reach all of it.
Separate the thing that gets sued from the thing worth taking
The operating company runs the clinic and holds the things that wear out. You keep it lean on purpose. There is not much inside it worth chasing.
The valuable, durable assets sit elsewhere. Real estate in its own entity, leased back to the clinic at a fair rent. That single move pulls your most valuable asset out of the line of fire.
Why operators skip this and regret it
The honest reason most clinics run on one entity is that nobody told them otherwise when they were small. But the cost of doing it right is a few entities and some clean intercompany agreements. The cost of not doing it is unlimited, and it shows up on the worst day of your professional life. Build it before you need it, because the day you need it is the day you can no longer change it.
- LLayer the entities to match the real risk.
- LLimit what one lawsuit can ever reach.
- CCarve the building out of the clinic.
Tzvi "LLC"