Medical Practice Setup Attorney – Houston & Texas

Set Up Your Medical Practice, Med Spa, or Specialty Clinic in Houston the Right Way

Since 1987, our physician practice attorneys have provided complete legal counsel for healthcare professionals across Texas ready to build or expand their practice. From solo concierge practices to multi-location ASCs, from med spa startups to complex practice mergers, we guide physicians through every stage – formation, growth, partnerships, and exit planning.

Texas medical practice formation isn't like opening any other small business. Between Texas's prohibition against the corporate practice of medicine, Stark Law compliance, TMB entity registration, and HIPAA requirements, one misstep in your formation and compliance foundation can trigger investigations that threaten everything you've built. Our medical practice startup lawyers build compliant, sustainable structures from day one – protecting your practice and your license. 

On This Page:

• Medical Practice Formation & Startup Services
• Choosing the Right Business Structure for Your Texas Medical Practice
• The Corporate Practice of Medicine Doctrine
• Joint Ventures in Healthcare
• Medical Practice Mergers & Acquisitions
• Healthcare Compliance & Regulatory Guidance
• Texas Medical Practice Setup for Every Specialty and Practice Model
• Why Texas Physicians Choose Hendershot Cowart
• Ready to Build Your Texas Medical Practice?

Ready to get started? Call (713) 783-3110 or contact us online today. 

The decisions you make in your first 90 days determine whether your practice thrives or struggles with regulatory problems for years to come. We meet with you to discuss your vision and goals, then build a practice-specific legal foundation designed to keep you compliant and positioned for growth. 

We handle:

• Entity formation (PLLC, PA, LLP) 
• Regulatory compliance (Stark Law, Anti-Kickback Statute, HIPAA, state licensing)
• Management services agreements and management services organization (MSO) structures designed to comply with Texas's corporate practice of medicine doctrine
• Physician employment agreements, non-compete agreements, medical director agreements, and independent contractor agreements for healthcare providers
• Patient forms and required notices
• Partnership structures, buy-in arrangements, and compensation plans
• Governance documents, buyout formulas, and succession planning
• Medical space leases, equipment agreements, and billing contracts
• 501(c)(3) nonprofit applications (for nonprofit clinics)

Before your first physician signs an employment agreement, have it reviewed by counsel. Compensation structures, non-compete terms, and tail coverage obligations set at the start of a practice relationship determine what happens if the relationship ends. See our physician employment contracts page for what to look for before you sign.

Your choice of entity structure should align with your practice size, ownership composition, and long-term growth plans. Solo practitioners have different needs than multi-physician groups, and practices employing or partnering with non-physician providers face additional considerations.

Texas offers several entity options for healthcare professionals, each with distinct advantages:

• Professional Limited Liability Company (PLLC): Most popular for small practices; offers lowest formation costs, flexible management, no annual Texas Secretary of State filings, tax flexibility (including S-Corp election for self-employment tax savings), and a simple single-member structure for solo practitioners.
• Professional Association (PA): Traditional corporate structure with formal governance; ideal for multi-physician practices requiring sophisticated decision-making protocols; permits non-physician minority ownership for physician assistants under supervision.
• Limited Liability Partnership (LLP): Requires a minimum of two partners with equal management rights unless otherwise specified; best suited for true equal partnerships where physicians want shared authority and collaborative decision-making.

Certain practice configurations also trigger registration requirements with the Texas Medical Board:

• Jointly owned entities. If your practice will be jointly owned by physicians and physician assistants, you must register the entity annually with the TMB.
• Anesthesia services. Practices offering office-based or outpatient anesthesia services must register with the TMB biennially, regardless of entity structure.

Texas law prohibits the corporate practice of medicine (CPOM), which means physicians generally cannot be employed by individuals without medical licenses or by business entities governed by laypeople. While certain exceptions exist – including employment by nonprofit corporations – this doctrine has far-reaching implications for how medical entities must be structured and governed.

Failure to comply can expose medical providers and entities to significant penalties, including fines and adverse actions against medical licenses. We structure your practice to comply with Texas's CPOM restrictions while achieving your business objectives.

Healthcare joint ventures in Texas face overlapping regulatory frameworks that require experienced legal counsel. Whether you're partnering with other physicians, partnering with hospitals or ASCs, or forming diagnostic or imaging center ventures, we help you structure compliant arrangements that protect all parties.

Before you form a joint venture or expand your investor base, we'll answer critical questions:

• What's the best corporate structure for your partnership or joint venture?
• How do you ensure good investor and shareholder relations?
• Will state licensure requirements affect your partnership structure?
• How will medical contracts impact partnership agreements?
• How will third-party billing arrangements affect your practice?

We also address corporate practice of medicine restrictions, fraud and abuse compliance, privacy requirements, and governance structures. Our goal is to create joint ventures that achieve your business objectives while maintaining full regulatory compliance from formation through ongoing operations.

Whether you're acquiring another practice, merging with colleagues, or positioning your practice for sale, healthcare M&A requires experienced legal guidance to navigate regulatory complexity while maximizing value.

The stakes are high. Structure the transaction incorrectly, and you could face Stark Law violations, Anti-Kickback Statute exposure, or Medicare fraud allegations. Miss key due diligence issues, and you inherit liabilities that cost exponentially more than the purchase price.

We provide comprehensive legal counsel for healthcare transactions:

• Practice acquisitions. Structure the deal wrong, and you can inherit liabilities or trigger Stark, AKS, or HIPAA exposure you never intended to take on. We handle due diligence, purchase agreement negotiation, compliance review, and transition services agreements to structure the acquisition correctly from the start.
• Tax-free corporate reorganizations. Healthcare entities, including physician practices, generally qualify for tax-free treatment under Section 351 – but certain types of equity don't count, and Texas's corporate practice of medicine rules require licensed physicians to retain control of the resulting PA or PLLC. We structure practice reorganizations to satisfy both tests.
• Practice mergers. A merger that skips fair market value determination or clear post-merger governance can create the same regulatory exposure as a mispriced acquisition – and risks losing the physicians and staff who make the combined practice work. We structure the merger, select the right entity, and consolidate payor contracts so the practice operates as one from day one.
• Partner buy-ins and partnerships. We help you distinguish true equity partnerships (ownership, voting rights, capital contribution, profit allocation) from employee "partnership track" arrangements – then structure and document the relationship to avoid disputes when expectations don't match reality.
• Practice sales and exit planning. A sale that rushes preparation or skips proper patient notification can undercut the practice's value or create compliance problems right when you're trying to exit cleanly. We help identify buyers, negotiate the letter of intent and purchase agreement, manage due diligence, and structure post-closing earnouts and transition planning so you leave on your terms.
• Medicare and Medicaid provider changes. Healthcare transactions often trigger Medicare and Medicaid provider enrollment changes, CMS notification requirements, and potential payment delays. We coordinate the regulatory requirements to minimize disruption to cash flow.

Healthcare is one of the most heavily regulated industries in America. The penalties for non-compliance aren't just financial – they can include exclusion from federal healthcare programs, civil and criminal liability, and TMB disciplinary action against your medical license.

Our health and medical law attorneys regularly assist our clients with individualized compliance programs around state and federal healthcare regulations, including:

• False Claims Act compliance and defense
• Anti-Kickback Statute advisory and violation defense
• Stark Law compliance for physician referrals
• HIPAA privacy and security requirements and compliance obligations for covered entities
• Medicare and Medicaid program compliance
• State healthcare regulations and licensing

Don't wait for an investigation or repayment demand to develop a regulatory compliance program. We build compliant structures and provide ongoing counsel to keep you ahead of regulatory changes.

Modern medical practices take many forms. We provide specialized formation and compliance guidance across the full spectrum of healthcare delivery models, including:

• Solo and Group Physician Practices 
• DPC Practices
• Medical Spas
• Ketamine Clinics 
• Men's Health or Testosterone Replacement Therapy
• IV Hydration Therapy 
• Laser Hair Removal Clinics 
• Weight Loss Clinics 
• Nonprofit Medical Clinics
• Freestanding Emergency Centers and Ambulatory Surgery Centers (ASCs) 
• Telehealth/Telemedicine Practices
• Dental Practices and Dental Support Organizations (DSO)
• Mental Health and Behavioral Health Practices
• Physical Therapy and Rehabilitation Centers
• Diagnostic Imaging and Medical Laboratories
• Management Services Organizations (MSOs)

We don't use cookie-cutter templates – we build compliant structures tailored to your specific healthcare delivery model. 

Whether you're opening a concierge practice, ketamine clinic, testosterone clinic, or multi-specialty ASC, schedule your initial consultation to review the regulations that govern your specific model and next steps. 

We don't just file paperwork. We build practice structures designed to withstand regulatory scrutiny, support your growth plans, and protect you from business risks that threaten less carefully formed practices.

Comprehensive Healthcare Legal Services

From entity formation to employment agreements, from compliance programs to partner buy-ins, we provide complete legal counsel for your healthcare business. No referrals. No piecemeal advice. Complete solutions.

Deep Understanding of Texas Healthcare Law 

We know Texas Medical Board rules, licensing requirements, and the nuances of Texas healthcare laws that out-of-state attorneys miss. We're invested in the Texas healthcare community and maintain relationships with regulators, industry organizations, and healthcare professionals across the state.

We're Business Lawyers, Too 

Healthcare practices are businesses. Beyond regulatory compliance, you need experienced counsel for employment matters, contract disputes, real estate, transactions, and business planning. We provide the complete business law capabilities you need – without referring you elsewhere.

Serving Medical Practices Throughout Greater Houston 

We work with physicians and healthcare entrepreneurs throughout Houston and the greater Houston metro, including Katy, Sugar Land, The Woodlands, Richmond, Rosenberg, Pearland, and League City. Our clients in these communities rely on us for med spa formation, IV hydration clinic setup, DPC practice launch, and MSO structuring – everything needed to open a compliant healthcare business in Texas.

Don't let legal complexity, regulatory uncertainty, or fear of making costly mistakes hold you back.

We've set up more than 250 medical practices and healthcare clinics over the past five years alone – and because we also defend physicians in licensing investigations and payor audits, we build your practice knowing exactly what regulators and auditors look for later. That's not something a firm that only handles setups, or only handles defense, can offer.

Since 1987, we've helped Texas physicians build practices that last. Let's talk about yours.

Call (713) 783-3110 or contact us online to schedule your consultation. Let's discuss your vision for your practice and create the legal foundation to make it a reality.