Texas Medical Practice Set Up & Merger Attorneys

Legal Guidance for Physicians and Healthcare Entrepreneurs Starting, Structuring, and Growing Medical Practices in Texas

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 Corporate Practice of Medicine doctrine, 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
• 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 get started? Call (713) 783-3110 or contact us online today. 

Medical Practice Formation & Startup Services

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 MSO structures (Corporate Practice of Medicine compliant)
• Physician employment agreements, non-compete agreements, medical director agreements, and independent contractor agreements
• 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)

Choosing the Right Business Structure for Your Texas Medical Practice

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.

The Corporate Practice of Medicine Doctrine

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.

Joint Ventures in Healthcare

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.

Medical Practice Mergers & Acquisitions

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. Comprehensive due diligence, purchase agreement negotiation, regulatory compliance review (Stark, AKS, HIPAA), asset vs. stock purchase structuring, and transition services agreements.
• Practice Mergers. Merger structure and entity selection, fair market value determination, post-merger governance, physician and staff retention, and payor contract consolidation.
• 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. Sale preparation, buyer identification, letter of intent negotiation, due diligence management, purchase agreement negotiation, patient notification, transition planning, and post-closing earnout structures.
• Medicare/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 Compliance & Regulatory Guidance

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.

Texas Medical Practice Setup for Every Specialty and Practice Model

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 & Concierge 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, or multi-specialty ASC, schedule your initial consultation to review the regulations that govern your specific model and next steps. 

Why Texas Physicians Choose Hendershot Cowart

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 Texas

Headquartered in Houston, we serve physicians and healthcare professionals throughout Texas, with deep knowledge of local regulatory requirements, business environments, and healthcare markets.

Houston and Greater Houston Area: Houston, Katy, Sugar Land, The Woodlands, Richmond, Rosenberg, Pearland, League City

Major Texas Markets: Austin, San Antonio, Dallas, Fort Worth, Corpus Christi, El Paso

Start or Grow Your Texas Medical Practice with Confidence

Ready to build the practice you've envisioned? Don't let legal complexity, regulatory uncertainty, or fear of making costly mistakes hold you back.

At Hendershot Cowart P.C., we've guided countless physicians and healthcare professionals from concept through successful launch – and beyond. We provide the comprehensive legal counsel you need to build a compliant, successful, and scalable medical practice in Texas.

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 reality.