If an illness, injury, or other emergency prevents you from working, your veterinary practice does not automatically gain a new decision-maker. Without written authority and a continuity plan, employees may be unable to access accounts, pay bills, communicate with vendors, or make the operational decisions needed to keep the practice open.
Who Can Run Your Veterinary Practice During an Emergency?
The answer depends on your practice’s ownership structure and governing documents. A co-owner may already have authority under an operating agreement, shareholder agreement, or corporate bylaws. In a single-owner practice, however, a manager, spouse, associate veterinarian, or family member cannot necessarily take control simply because you trust them.
Someone must have clear legal and practical authority to address matters such as:
- Accessing bank, payroll, and accounting accounts
- Paying employees, vendors, rent, loans, and taxes
- Managing schedules and approving time off
- Communicating with clients about appointments and patient care
- Working with insurers, lenders, landlords, and suppliers
- Signing contracts or authorizing major purchases
- Hiring temporary veterinarians or adjusting operations
Authority over business matters does not necessarily include the right to make clinical decisions. Veterinary licensing laws and ownership rules vary by state, so your plan should distinguish between administrative control and work that must be performed or supervised by a licensed veterinarian.
What Happens If No One Has Clear Authority?
When no plan exists, the practice may face delays at exactly the wrong time. Employees may not know who can approve payroll, vendors may go unpaid, and managers may hesitate to make decisions outside their normal roles. Passwords, insurance information, banking details, and key contracts may also be difficult to locate.
A prolonged absence can create greater problems. Staff members may leave because they are uncertain about their jobs. Clients may transfer their animals elsewhere. The practice may also lose revenue while continuing to owe rent, wages, loan payments, and other fixed expenses.
In some cases, a family member, co-owner, or other interested person may need to seek court authority before taking certain actions. That process can consume time and money while the business remains in limbo.
How Can an Operating Agreement Protect the Practice?
For a multi-owner veterinary practice, the operating or shareholder agreement should explain what happens when an owner becomes temporarily or permanently unable to work. It may identify who assumes management duties, how voting power changes, and when a disability triggers a buyout.
The agreement should also address how incapacity is determined. Clear terms can reduce disputes over whether an owner can return, how long the other owners must wait, and whether the owner’s interest should be purchased. Any buyout provisions should include a valuation method, payment terms, and a plan for funding the transaction.
Because ownership restrictions for veterinary practices differ by state, these provisions must comply with the rules in the state where the practice operates.
How Do Powers of Attorney Support Business Continuity?
A durable power of attorney can authorize a trusted person to handle specified financial or business matters if you become incapacitated. Depending on the document and state law, the agent may be able to access accounts, pay bills, work with insurers, and complete certain transactions.
When the agent’s authority begins also matters. A springing power of attorney takes effect only after a stated event, which may require medical documentation of incapacity. Obtaining that documentation can delay payroll, vendor payments, and other urgent tasks. An immediately effective power of attorney generally grants authority when signed, although the owner may instruct the agent to use it only when needed.
Neither approach is right for every owner. The document should reflect your preferences, comply with state law, and coordinate with your operating agreement, bank authorizations, and succession plan. You should also confirm whether financial institutions require separate forms before an agent can access practice accounts.
What Should a Veterinary Practice Emergency Plan Include?
A useful emergency plan turns legal authority into clear instructions. It should identify who will lead the practice, who will communicate with employees, and who will handle financial and administrative tasks.
Your plan should include an updated list of key contacts, account locations, insurance policies, loan information, vendor relationships, payroll procedures, leases, and recurring payment obligations. Secure access to passwords and digital systems also needs attention. The people named in the plan should know their roles before an emergency occurs.
Review the plan when ownership, staffing, financing, or practice operations change. An outdated plan can create nearly as much confusion as having none.
Protect the Practice You Have Built
Your veterinary practice needs a workable plan for both short absences and permanent incapacity. Mahan Law helps veterinary practice owners review operating agreements, establish succession terms, prepare emergency procedures, and coordinate business planning documents. Contact Mahan Law to build a continuity plan that gives the right people authority to act when your practice needs them most.