How to Protect Client Information: Data Privacy Best Practices for Veterinary Clinics

Veterinary practices maintain sensitive client information, including financial details, such as credit card information and Social Security numbers, that need to be protected from unauthorized access. Unfortunately, approximately 11,000 veterinary practices in the United States experience a cyber attack annually. 

Effective data privacy best practices can help veterinary practice owners protect client information from cyber security attacks. Veterinarians can follow the best practices discussed below to protect client information. 

Understand State Data Protection Laws

Data privacy laws govern how businesses handle data electronically and what they must do to protect sensitive data. Veterinary practices must adhere to data privacy laws. For example, HIPAA, a federal law, requires veterinary practices to safeguard the animal owner’s name, address, and other private information. 

Some states have additional data protection laws. California only allows sharing veterinary medical records with third parties for diagnosis or treatment purposes. Working with an experienced attorney can help you ensure your veterinary practice complies with all applicable state and federal data security laws. 

Train Staff Members about Cybersecurity Threats

Training staff about cybersecurity threats is crucial to protecting client information in your veterinary practice. The first step is to train your staff members on the basics of cybersecurity, including common threats such as phishing attacks, malware, and social engineering. 

Using real-life examples relevant to your veterinary practice to illustrate potential risks can help your staff members quickly identify potential future threats. Provide clear guidelines on recognizing suspicious emails or activities. Emphasize the importance of strong password and data encryption practices. 

Encourage staff to ask questions and ensure they know how to report any cyber security concerns or experiences. Many veterinary practices reinforce data security training with interactive methods like simulations or quizzes. Finally, ensure everyone understands their role in protecting sensitive client data. Regularly updating staff training materials to reflect current cybersecurity trends will help your staff members stay prepared.

Back-Up Your Veterinary Practice’s Data

Backing up your veterinary practice’s data protects sensitive client information during a cyberattack or data loss. Using a robust backup system and scheduling regular backups of all critical data, including client records, treatment histories, and financial information, is crucial. 

Using local and cloud storage solutions creates redundancy, protecting against hardware failures and electricity loss. It is essential to regularly check your backup data to confirm it can be restored quickly and accurately when needed. Also, consider encrypting backup data to prevent unauthorized access. Educating your staff on the importance of data backup can foster a culture of data protection.

Implement a Cyber Security Incident Response Plan 

Unfortunately, cyber security attacks on veterinary practice data can occur, even with safeguards in place. Creating a cyber security incident response plan for your veterinary practice can help you respond in a way that protects your veterinary practice. Engaging in risk assessment can help you identify vulnerabilities and begin outlining procedures for detecting, reporting, and responding to cybersecurity incidents. Staff members should receive training to help all staff understand their roles. A well-structured incident response plan can significantly mitigate the impact of cyber threats and protect sensitive client information.

Contact a Skilled Veterinary Attorney Today

At Mahan Law – Veterinary Law Firm, we recognize veterinary practices’ unique data security challenges. Our proactive approach assists you in implementing best practices for data management, such as password policies, encryption techniques, and cloud storage options. We focus on disaster recovery planning, ensuring your practice is ready for unexpected events. Don’t hesitate to contact Mahan Law – Veterinary Law Firm to schedule a free case evaluation.

How to Negotiate Favorable Terms in Veterinary Vendor Contracts

In the veterinary industry, vendor contracts are crucial in ensuring that your practice runs smoothly and efficiently. The terms negotiated in these contracts directly impact your bottom line, from medical supplies and pharmaceuticals to equipment and technology. A well-negotiated vendor contract saves money and ensures your practice receives consistent, high-quality products and services.

Here are some key strategies from Mahan Law to help your veterinary practice secure better terms in vendor contracts.

Understand Your Needs and Leverage Your Volume

Before entering negotiations, evaluate your practice’s specific needs. Assess the products and services you require most often, and identify areas where bulk purchasing could save costs. Vendors frequently provide discounts for large orders, so understanding your volume and demonstrating a consistent need can strengthen your bargaining position.

For example, if your practice regularly purchases a particular medication, approach the vendor with a detailed forecast of your expected purchases. Show them the potential for a long-term relationship and inquire about pricing discounts for bulk orders or repeat business.

Research and Compare Vendors

Knowledge is power when negotiating. Research multiple vendors to understand their pricing structures, terms, and any added benefits they may offer. Comparing vendors allows you to identify industry benchmarks and gives you leverage to negotiate better terms with your preferred supplier.

For instance, if a competitor offers lower prices or more favorable delivery terms, use this information to ask your current vendor to match or beat their offer. This approach improves your negotiating position and ensures you get the best value for your money.

Negotiate Long-Term Discounts

Vendors often value long-term partnerships, as these relationships provide stability and predictable income. Use this to your advantage by requesting long-term discounts in exchange for signing multi-year agreements or committing to specific purchase thresholds.

For example, if you’re negotiating a contract for veterinary surgical equipment, ask about price reductions for committing to a three-year supply agreement. A longer commitment can result in significant cost savings while providing your practice with a reliable supply chain.

Focus on Delivery and Inventory Flexibility

Timely delivery of supplies is critical to keeping your practice operational. When negotiating, prioritize favorable delivery terms that ensure products arrive when you need them. Discuss options for expedited shipping, free delivery, or flexible inventory arrangements that allow for restocking without excessive delays.

Additionally, consider negotiating consignment inventory arrangements. Under this model, the vendor supplies your practice with stock but only charges you for what you use. This reduces upfront costs and helps manage cash flow more effectively.

Include Price Protection Clauses

Fluctuating costs in the supply chain can lead to unexpected price increases. To protect your practice, consider negotiating price protection clauses into your contracts. These clauses limit price increases over the contract term or tie adjustments to specific market indicators.

For example, you could agree to an annual price review with caps on increases tied to inflation or commodity price changes. This would ensure predictability in your budget and avoid sudden cost spikes that could strain your finances.

Review and Negotiate Terms Beyond Pricing

While cost is an essential factor, it’s equally important to consider other contract terms. Review payment schedules, warranties, return policies, and support services carefully. Favorable terms in these areas can save money and reduce headaches over the life of the contract.

For instance, you might negotiate extended warranties for diagnostic equipment or favorable return policies for products that do not meet your needs. These provisions can prevent unexpected expenses and disruptions to your practice.

Build Strong Vendor Relationships

A good working relationship with your vendors can lead to better terms over time. Be transparent about your needs and communicate regularly to ensure mutual understanding. Vendors who see your practice as a valuable partner are more likely to offer concessions or go the extra mile to accommodate your requests.

For example, a trusted vendor might offer early access to new products or provide training for your team at no additional cost. These benefits often stem from a solid, collaborative relationship.

Seek Professional Guidance When Needed

If you’re unsure about negotiating or reviewing vendor contracts, consider consulting a legal professional familiar with the veterinary industry. They can help identify areas for improvement, ensure the contract aligns with your practice’s needs, and protect your interests.

Your Trusted Veterinary Lawyers

Negotiating favorable terms in veterinary vendor contracts requires preparation, research, and strategic communication. By understanding your practice’s needs, leveraging your purchasing power, and focusing on more than just pricing, you can secure agreements that benefit your bottom line and ensure operational efficiency.

Strong vendor relationships and well-structured contracts provide the foundation for long-term success in your veterinary practice. Take the time to negotiate wisely—it’s an investment that will pay dividends in the years to come. Contact us today for your veterinary vendor contract needs.

How to Handle Breach of Contract with Veterinary Suppliers: Legal Recourse

Contracts with suppliers are critical for the smooth operation of a veterinary practice, ensuring consistent access to medications, equipment, and other essentials. However, when suppliers fail to meet their contractual obligations, the resulting disruption can harm the business and compromise patient care.

To protect your practice’s interests, knowing how to address a breach of contract with a supplier is essential. Here’s a guide from Mahan Law on understanding breaches, taking appropriate action, and pursuing legal remedies when necessary.

What Constitutes a Breach of Contract?

A breach of contract occurs when one party fails to fulfill its obligations as outlined in the agreement. For veterinary suppliers, this could mean:

  • Failing to deliver agreed-upon products or services.
  • Delivering items that do not meet the quality standards specified in the contract.
  • Missing deadlines that were clearly defined in the agreement.
  • Violating terms related to pricing or payment schedules.

Understanding whether the breach is material (a significant failure affecting the contract’s purpose) or minor (a less critical issue) is important, as this will influence your options for resolution.

Steps to Address a Breach of Contract

Review the Contract Terms

The first step is thoroughly reviewing the contract to identify the specific obligations and determine whether the supplier has violated them. Pay close attention to performance, delivery, and dispute resolution clauses.

Ensure you understand any notice requirements, deadlines, or penalties for non-compliance. This will inform you of your next steps and help you build a case if the issue escalates.

Document the Breach

Gather evidence of the breach to support your position. This may include:

  • Copies of the contract.
  • Records of correspondence with the supplier.
  • Invoices, receipts, and delivery records.
  • Photos or reports detailing substandard products.

Clear documentation strengthens your case and demonstrates the impact of the supplier’s failure on your practice.

Communicate with the Supplier

Before escalating the matter, attempt to resolve the issue directly with the supplier. Reach out to discuss the breach and seek an explanation. Sometimes, the problem may result from unforeseen circumstances, such as supply chain disruptions, which the supplier may be willing to rectify.

If necessary, send a formal notice of breach outlining the specific violations and giving the supplier a reasonable timeframe to correct the issue. Keep written records of all communications to use as evidence if the matter progresses.

Consider Mediation or Negotiation

If initial efforts to resolve the issue fail, mediation or negotiation can be a less adversarial way to reach an agreement. Many contracts include alternative dispute resolution (ADR) clauses requiring mediation or arbitration before pursuing legal action.

During mediation, a neutral third party facilitates discussions to help both sides reach a resolution. Negotiation may also involve revising the contract terms or agreeing on compensation for damages caused by the breach.

Legal Remedies for Breach of Contract

When informal efforts to resolve the issue are unsuccessful, your practice may need to pursue legal remedies. The options available depend on the nature of the breach and the terms outlined in your contract.

Compensatory Damages

This is the most common remedy, aiming to compensate your practice for losses incurred due to the breach. For instance, if a supplier’s failure to deliver critical supplies caused financial harm or forced you to find an alternative supplier at a higher cost, you could seek reimbursement for those expenses.

Specific Performance

In some cases, monetary compensation may not be sufficient, particularly if the breach involves unique or hard-to-replace goods. A court may order the supplier to fulfill their contractual obligations through specific performance.

For example, if a supplier agreed to deliver custom veterinary equipment that is difficult to source elsewhere, this remedy ensures your practice receives what was promised.

Cancellation and Restitution

If the breach is severe enough to undermine the entire purpose of the contract, you may cancel the agreement and seek restitution. Restitution requires the supplier to return any payments already made while releasing your practice from future obligations under the contract.

Liquidated Damages

If the contract includes a liquidated damages clause, you may be entitled to a predetermined amount as compensation for the breach. These clauses are common in agreements where timely performance is critical, such as for the delivery of lifesaving medications.

Preventative Measures for Future Contracts

While legal recourse is available, avoiding disputes altogether is always better. Here are some tips to minimize the risk of supplier breaches:

  • Draft Clear Contracts: Ensure all terms, including delivery schedules, product specifications, and payment details, are clearly outlined.
  • Include Dispute Resolution Clauses: Specify how disputes will be handled, such as through mediation or arbitration.
  • Vet Your Suppliers: Work with reliable vendors with a strong track record of meeting obligations.
  • Monitor Performance: Regularly review supplier performance to identify and address issues early.

Call Mahan Law Today

Dealing with a breach of contract from a veterinary supplier can be challenging, but taking the right steps can help protect your practice. By understanding your rights, documenting the issue, and pursuing appropriate remedies, you can address the breach effectively while minimizing disruption to your operations. Contact us today for legal recourse after a contract has been breached.

With careful contract management and proactive communication, you can build stronger supplier relationships and reduce the likelihood of future disputes. A sound strategy for handling breaches ensures your practice remains well-equipped to provide the highest level of care to your patients.

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The Cost of Skipping Background Checks in Your Veterinary Practice

Conducting background checks can help protect your veterinary practice, staff members, patients, and their owners. Employees who work with patients need to be trustworthy, especially when working with vulnerable animals. Avoiding the negative consequences of skipping background checks can help your veterinary practice thrive. 

Skipping Background Checks Can Result in Liability 

When veterinary practices skip a background check on a potential employee who poses a threat to other people and animals, the practice opens itself up to litigation and liability. For example, suppose a veterinary practice hires an employee without conducting a background check. A background check would have revealed the employee’s previous arrest and conviction for aggravated assault. If the employee assaults a co-worker, the coworker could bring a lawsuit against the veterinary practice for negligent hiring. 

Victims in personal injury lawsuits can pursue financial damages from the veterinary practice. Litigation can result in the practice of paying court costs and losing funding, licenses, and grants. Additionally, protracted litigation can damage the practice’s reputation, leading to a loss of clients and trust within the community.

Skipping Background Checks Can Cause Patients Harm

Conducting a background check doesn’t guarantee that an employee will be safe when hired. However, background checks can prevent veterinary practices from hiring workers who could be more likely to cause harm to patients. If you own a veterinary practice, conducting a background check can help protect the animals that come into your practice for treatment. When a staff member has a history of drug abuse, alcoholism, or violence, the animals being treated at your practice could be at risk of harm. For example, a staff member with a history of violence and anger issues could hurt an animal when frustrated.

In other cases, staff members who come to work under the influence of drugs or alcohol may end up administering incorrect medication, causing the animal to become injured. Hiring employees with clean records without a history of dangerous or inappropriate behavior will limit the risk of your patients being harmed.

Your Reputation Could Be Hurt By Skipping Background Checks

As a veterinary practice, your reputation is everything. Many online platforms allow pet owners to leave reviews of veterinary practices. You could face multiple negative reviews if an animal, pet owner, or another staff member is injured or harmed by a dangerous employee. If the victim pursues legal action, news of the pending litigation could hurt your veterinary practice’s reputation.

Many pet owners consider their animals like family members and want to ensure they take their pets to veterinarians who keep them safe. Skipping a background check could result in hiring an employee who will damage your veterinary practice’s reputation. Recovering from reputational damage can be extremely challenging, and in some cases, it could be nearly impossible.

Contact an Experienced Veterinary Practice Attorney

The attorneys at Mahan Law have extensive experience providing effective legal counsel to veterinary practice owners across the United States. If you own a veterinary practice and have questions about running background checks in a legally compliant and effective way, don’t hesitate to contact Mahan Law. We offer potential clients a complimentary, no-obligation case evaluation.

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Legal Considerations for Background Checks in Veterinary Practices

An important aspect of owning a successful veterinary practice is ensuring you comply with state and federal employment laws. Conducting background checks on job applicants can help you hire employees who are safe, competent, and ready to contribute positively to your veterinary practice. Understanding the legal considerations for background checks and veterinary practices can assist you during the hiring process.

The Benefits of Conducting Background Checks 

Conducting background checks on potential employees has many benefits. Background checks can help veterinary practice owners become aware of criminal convictions that may make it unsafe for the applicant to work with and care for patients. They can also help prevent internal theft of controlled substances and protect the practice from hiring employees who may have a background that could create liability for the veterinary practice.

Background Checks Are Usually Required Under State Law

Some veterinarian practice owners may not run background checks and assume they are unnecessary. However, most states require employers in the healthcare field, including the veterinary field, to conduct background checks. Employers should conduct background checks on potential hires. They should also conduct background checks periodically after an employee has been hired. States have enacted these requirements to protect patients from providers who may have a history of violence, illegal drug use, or theft. If you are unsure whether your state requires you to run background checks on potential employees, speaking to an experienced attorney is worthwhile. The attorneys at Mahan Law can help you understand the requirements in your state and offer legal counsel about how to comply with them. 

Mistakes to Avoid When Conducting a Background Check

As the owner of a veterinary practice, it will benefit you to have a streamlined process for conducting background checks so you can avoid common pitfalls. Making certain types of mistakes when conducting background checks can create legal liability for your veterinary practice. For example, when conducting background checks, you should always do the following:

  • To avoid discrimination, ensure your background check policy is as consistent as possible and applies to all applicants moving forward.
  • Allow applicants to correct any possible mistakes the background check may have uncovered.
  • Obtain the individual’s permission before conducting a background check.
  • Avoid engaging in social media screenings.
  • Conduct ongoing screenings for employees who have been hired.
  • Work with an attorney to ensure you are complying with state and federal guidelines.

Limit Background Checks to Relevant Records

It’s important to limit your background checks to records that are relevant to the employment position. For example, you wouldn’t want to run a credit check unless an employee’s credit is somehow related to the position for which you’re hiring them.

Conducting a credit check may be necessary if the employee will be handling money or making financial decisions for your veterinary practice. Similarly, you may not need to look into a potential employee’s driving record if they will be a virtual assistant for your office manager. In healthcare, however, it’s always a good idea to conduct criminal background checks on any potential employee who will work with animals and their owners. 

Contact a Veterinary Practice Attorney Today 

The veterinary practice attorneys at Mahan Law are prepared to help you review your hiring process. We can provide you with experienced legal counsel on how to conduct background checks legally in your veterinary practice. Working with an attorney can ensure your practice complies with all relevant employment regulations. Don’t hesitate to contact Mahan Law today to schedule a complimentary, no-obligation case evaluation.

Attentive vet takes clinical notes while a pet owner lovingly strokes her happy Jack Russell Terrier at a routine vet appointment in a bright clinic

Developing a Fair Employee Handbook for Your Veterinary Practice

Developing an employee handbook is an essential way to develop your veterinary practice’s culture and protect against litigation. Workplace dissatisfaction, conflicts, and even litigation are more likely to happen when employees don’t know what’s expected of them or the process for reporting discrimination, harassment, or other grievances. Creating an employee handbook is the first step to fairly and consistently applying your veterinary practice’s standards and policies.

Employment Policies and Procedures

Your employee handbook should include an introduction to your veterinary practice’s mission, culture, and values. It should also include clear statements about what’s expected of employees in terms of attendance, punctuality, attire, job performance, patient and client interactions, workplace communications, and other procedures. 

If you add a new location in a different city, county, or state, you may need to revise your handbook or create a new one for employees in that specific location to reflect local laws. Additionally, as your practice grows, you may need to develop and Implement new policies and procedures to meet your veterinary practice’s unique challenges.

Anti-Discrimination and Anti-Harassment Procedures

Employee handbooks are important because they help veterinary practices remain in compliance with local, state, and federal laws. Specifically, the handbook should have clear anti-discrimination and anti-harassment statements and procedures for filing claims. The handbook should include a step-by-step procedure for reporting discrimination and harassment, and for requesting accommodations due to a disability. 

When employees report discrimination or harassment, the staff member in charge of implementing the handbook should take their report seriously and follow through with the remaining steps in the reporting policy. The handbook should make it clear that employees won’t be penalized in any way for reporting or participating in investigations related to discrimination and harassment. 

Working with an attorney can be helpful for updating your handbook when employment laws change. This can help ensure your practice isn’t unintentionally violating one or more laws, which could lead to an expensive agency investigation or even a lawsuit. An attorney can provide legal experience, review your handbook for compliance with employment laws, and help you navigate complex legal issues, ensuring your handbook is fair and legally sound. 

Employee Benefits

The handbook should clearly state all of the employment benefits available for staff members. A comprehensive benefits section not only informs employees about their entitlements but also demonstrates your commitment to their well-being, which can help attract and retain top talent. 

Information regarding retirement accounts, such as 401ks, insurance policies, workers’ compensation policies, vacation time, and other employee benefits, should be clearly stated in the handbook. The handbook should also address how employees can best use their employee benefits. Spelling out how many vacation days and sick days employees have each year is also important.

Including Disciplinary Policies in Your Employee Handbook

Creating a handbook is an important first step, but it’s equally crucial to enforce its policies and procedures fairly. For example, if two employees arrive late, it’s essential to apply the standards in the handbook that relate to tardiness. If the tardiness persists, it’s important that both employees are asked to leave the company. This commitment to fair enforcement will help you avoid employment litigation and maintain good discipline within your veterinary practice.

Contact a Veterinary Practice Attorney

Creating a handbook for your veterinary practice can help you implement staff-wide policies and procedures. It can also help you protect against liability and ensure you’re treating your employees fairly across the board. 
At Mahan Law, we understand that owners of veterinary practices are busy with their day-to-day operations. We can help you develop or update your community handbook to reflect your unique practice, needs, and goals. Contact Mahan Law to schedule a complimentary case evaluation.

Three multi-ethnic workers at an animal hospital preparing a kitten for a surgical procedure. The veterinarian and veterinary technicians are wearing medical scrubs, surgical caps and masks.

Training Your Team on Equal Employment Laws and Practices

Whether starting a veterinary practice or purchasing an existing one, training your team on equal employment laws and practices is crucial. Taking an active approach to training your staff about anti-discrimination and anti-harassment policies can help promote a positive and safe culture for everyone in your company. Actively training your staff can also help you minimize employment lawsuits.

Explain Your Veterinary Practice’s Policies Regarding Equal Employment

Annual training can help you ensure that your employees understand your veterinary practice’s discrimination policies. When training your employees, you should clearly state that discrimination based on color, race, sex (including pregnancy, sexual orientation, or gender identity), disability, national origin, age (40 or older), and genetic information is illegal and won’t be tolerated. When training employees, you may need to provide more examples.

It’s also important to inform your employees of your veterinary practice policies regarding harassment, discrimination, and making reasonable accommodations. Distributing a copy of the employee handbook or telling the employees where they can find this information is essential. All employees should know how to report discrimination and harassment or ask for accommodations. If you do not have a dedicated human resources team, you should let staff know which employees are responsible for handling these types of reports. 

It’s also important that employees know they won’t be punished or retaliated against for reporting discrimination, participating in a lawsuit or investigation related to discrimination, or trying to oppose discrimination in the workplace. When employees report violations of the practice’s equal opportunity policies, their information should remain confidential during the investigation to the greatest extent possible. Employees should also clearly understand the consequences of violating your veterinary practices’ non-discrimination policies. 

Create an Employee Handbook

Every veterinary practice should have an employee handbook as the foundation for enforcing federal and state employment laws. This comprehensive handbook provides your veterinary practice with the necessary structure and guidance, ensuring that you are well-equipped to handle any employment-related issues that may arise. 

The manager may handle human resources and the veterinary practice’s day-to-day operations. Creating a detailed employee handbook could save time when incidents arise. Establishing expectations and rules will help you address disputes or concerns more quickly. When handbooks are followed, veterinary practices enjoy greater protection from employment lawsuits because they can clearly show how they have followed state and federal laws as directed by the handbook. 

Require Staff Training on Equal Employment Laws and Practices

After you have completed the employee handbook, you should call us for a staff meeting and train your staff on what the handbook means. Working with a veterinary attorney can help you stay aware of any important changes in state and federal employment laws. Because changes happen regularly, you should plan on hosting staff training on equal employment laws and practices at least once a year. Your attorney can help you update your handbook and note any changes to how equal employment issues will be addressed in the annual training.

Contact a Veterinary Practice Attorney Today

If you have questions about training your veterinary team on equal employment opportunities, speaking to an attorney can be helpful. Contact Mahan Law – Veterinary Attorney to schedule a complimentary, no-obligation consultation.

Happy male veterinarian crouching next to the examination table and looking at the little cat lying on it. He is smiling and petting it.

Due Diligence Checklist for Acquiring a Veterinary Clinic

Are you considering acquiring a veterinary practice? Engaging in the due diligence process is not just a step to check off but a crucial reassurance before you do so. The due diligence process involves carefully evaluating the financial stability and performance of the veterinary practice you’re considering acquiring. It’s a process that will give you confidence in your decision. 

The due diligence process will help you identify any red flags before you commit to acquiring the practice. Completing a due diligence checklist before you acquire a veterinary clinic can help ensure the practice is a profitable investment. It’s a process that will make you feel knowledgeable about your potential investment.

A Financial Due Diligence Checklist

Financial due diligence helps potential buyers ensure the veterinary practice’s financial status is as favorable as the practice has claimed. It also ensures adequate cash flow to cover the practice’s expenses, including the loan you will likely take out to purchase the practice and any overhead. 

Additionally, financial due diligence will help you ensure the practice can generate enough income to cover your salary, living expenses, and staff members. You’ll need to acquire and investigate the following financial documents during the due diligence process:

  • At least three years of the practice’s tax return
  • Profit and loss statements
  • Bank statements and any other financial statements
  • Collections, as indicated on the general ledger
  • Staff salaries and benefit plans for retirement accounts
  • Documents showing how employees accrue vacation time
  • Commercial lease agreements 
  • Leasing contracts for equipment
  • Overhead costs, including costs for utilities, office management, payroll, advertising, equipment maintenance, laboratory fees, and other expenses
  • Agreements between the practice and third-party vendors
  • Any other contracts you’ll be assuming if you acquire the practice
  • A thorough list of all assets and liabilities

Legal Due Diligence Checklist

Legal due diligence involves a careful review of all legal documents. State and federal licensing requirements documents, lease agreements, and any lean agreements on the practice should be carefully considered. You should also carefully read current employment contracts to determine how an acquisition should be handled and which employees will stay after the purchase. A legal due diligence checklist for acquiring a veterinary practice includes checking the following documents:

  • Carefully reviewing the employee handbook
  • Consider the salaries and benefits for each employee according to their employment contracts
  • Discover whether any employees do not have current employment contracts and why
  • Review all leases including those for equipment and real estate to make sure the terms are fair and understand your responsibilities if you acquire the practice
  • Review all vendor contracts
  • Find out the status of intellectual property ownership

Practice Management Due Diligence Checklist

The due diligence process for practice management involves carefully considering how the practice is managed on a day-to-day basis. This process will usually require you to visit the veterinary practice so you can ask questions and see how the practice operates in person. Practice management due diligence checklists include evaluating:

  • Whether the seller wants to remain in the practice after the acquisition
  • Whether the space needs remodeling
  • Weather equipment needs to be replaced
  • Whether there is a balance between current and new patients
  • The type of care patients receive
  • The patient management software
  • The fee schedule
  • Ongoing, routine practice expenses 

Contact an Experienced Veterinary Practice Attorney

Although it is possible to conduct due diligence on your own, you could be putting yourself at risk by doing so. The team of professionals at Mahan Law has the experience and legal skills needed to handle every aspect of the due diligence process. If you’re considering acquiring a Veterinary practice, don’t hesitate to contact Mahan Law to schedule a free consultation.

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Decoding Veterinary Practice Contracts: Key Clauses Every Vet Needs to Understand

Understanding the complexities of veterinary contracts is not just beneficial, it’s empowering for veterinary professionals. Whether you’re a seasoned veterinarian or fresh out of vet school, mastering the nuances of your employment contract can safeguard your career and financial well-being. 

Include a Clause Discussing Your Compensation Structure

Your veterinary employment contract should include detailed information about how and when you’ll be compensated. The clause should state your base salary, which is the guaranteed income you’ll receive regardless of the number of clients you treat or surgical procedures you perform. Including a base salary will ensure financial stability, especially if you are a new veterinarian. Some veterinary contracts state veterinarians receive payment via production-based pay, also called “pro-sal.” 

Under this structure, veterinarians will be paid a percentage of the revenue they generate for the practice. Consulting with an attorney can help you decide the best type of pay structure in line with your goals and career trajectory. An attorney can also negotiate the contract clause to increase your base income and pro-sal percentage.

Non-compete Clauses in Veterinary Contracts

Non-compete clauses can significantly impact your ability to earn a living as a veterinarian after you stop working for your current practice. Understanding these clauses and their implications is crucial. They limit how and where a veterinarian can practice after leaving an employer. Non-compete clauses should balance an employer’s business interests with the associate’s right to continue practicing as a veterinarian. Being aware of these clauses will help you make informed decisions about your career. 

Will you be required to move to continue practicing if you leave the practice? Veterinarians should carefully consider the scope of restrictions. Suppose you are a specialist in an area of veterinary practice. In that case, an attorney can help you negotiate for the non-compete clause to apply only to your specialty rather than practicing veterinary medicine as a whole.

Employment Benefits and Time Off

As an employee, your benefits are an important aspect of your total compensation package. In addition to your base pay, the contract should include a clause discussing your health insurance, retirement plans, and continuing education allowances. These benefits are essential to your long-term professional development and financial health. 

As health insurance premiums are at an all-time high, negotiating a comprehensive and robust retirement plan will help you and your family financially secure. The contract clause discussing benefits should also clearly state the policies for paid time off and parental leave. You should also ensure the contract clearly states that you are covered by the veterinary practice’s malpractice liability insurance.

Renewal and Termination Clauses in Veterinary Contracts

Veterinary clauses should include a clause discussing when your employment contract can be extended or terminated, laying the groundwork for your employment relationship’s stability and longevity. It’s crucial that the clause clearly states the reasons for termination, such as misconduct or poor performance, as understanding these reasons can help you protect your job security. The clause should also specify how much notice either party needs to provide before termination, allowing adequate transition time. 

When renewing the employment contract, pay careful attention to any details regarding criteria that need to be met for the contract to be extended. An attorney can help you negotiate for an automatic renewal clause with predefined increases in salary or employment benefit enhancements based on your performance.

Contact an Experienced Veterinary Practice Attorney

Understanding important Clauses in your employment contract can help you make an informed decision when you begin working for a Veterinary practice. Discussing the contract with an attorney can help you understand your rights and obligations under the contract. Your attorney can also negotiate in pursuit of more favorable terms. Contact Mahan Law to schedule a free consultation.

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The Future of Veterinary Telemedicine: Legal Considerations

Many veterinary practices are embracing the future with veterinary telemedicine or telehealth appointments. This innovative approach allows pet owners to schedule a video call with their pet’s veterinarian, discuss their pet’s symptoms, and create a treatment plan, all from the comfort of their home. 

It’s a convenient way for pet owners to connect with a veterinarian, and it’s a step towards a more accessible and efficient veterinary care system. However, as a veterinary practice owner, it’s crucial to understand the legal considerations of offering telehealth veterinary appointments, including the potential for malpractice lawsuits.

What Is Veterinary Telehealth?

Veterinary telehealth, also called telemedicine, allows veterinarians to provide animal care through technology, including video calls, phone calls, texts, emails, photos, and videos. The pet doesn’t need to come into a veterinarian’s office to be seen physically. Instead, the owner can schedule a video or phone call with a veterinarian. Based on the telehealth appointment, a veterinarian may recommend bringing the pet in for a physical examination or may prescribe medication for the pet based on its symptoms.

Several states have enacted laws allowing veterinary telehealth appointments. Arizona recently passed Senate Bill 1053 into law, allowing veterinarians licensed in the state to provide telemedicine veterinary appointments. Veterinary telehealth appointments increase the ability of busy pet owners, potentially freeing up appointments for those whose pets need to see a veterinarian in person.

Legal Concerns When Using Veterinary Telehealth 

The legal issues surrounding veterinary telemedicine are complex and require careful consideration. Remote veterinary care is inherently different from a veterinarian examining a pet in person. The two main legal issues veterinarians offering telehealth services face are malpractice liability and licensing issues. It’s important to be aware of these potential risks and take steps to mitigate them.

Nearly all states in the U.S. require veterinarians to be licensed in the state where they practice. Issues can arise when a veterinarian treats a pet living in a state where they aren’t licensed. Other issues could involve a veterinarian contacting an out-of-state specialist. If a bad outcome occurs, which veterinarian can be held liable? As long as a veterinarian-client-patient relationship (VCPR) has been established, the pet’s owner may be able to hold the tele-veterinarian specialist liable for medical malpractice.

Malpractice Claims Involving Telehealth Services

Does a 15- or 30-minute online consultation establish a VCPR? Ultimately, veterinary boards, government regulators, and courts will need to answer this question. Under current veterinary malpractice laws, the lack of a VCPR due to an in-person relationship could be evidence that a veterinarian has fallen below the minimum standard of care. 

Veterinarians offering telehealth appointments should be careful when developing a pet treatment plan. Suppose the veterinarian speaks to the pet owner and remains unsure of the pet’s diagnosis. In that case, they should recommend an in-person appointment to further evaluate the pet instead of prescribing medication. Veterinary practices offering telemedicine appointments should carry robust medical malpractice insurance. It is also important to speak to an attorney to develop best practices to decrease the risk of malpractice lawsuits.

Contact an Attorney for Veterinary Practices 

Whether you’re considering adding telehealth appointments to your veterinary practice or already offering them, Mahan Law is here to provide the legal support you need. We will review your veterinary telemedicine policies and help you develop a strategy to reduce the likelihood of malpractice lawsuits and protect your personal and business interests. Our goal is to give you the confidence to navigate the legal aspects of telehealth, so don’t hesitate to contact us to schedule a complimentary, no-obligation case evaluation. 

We provide experienced legal consulting services for veterinary practices throughout the United States, including the states of Ohio, Florida, Kentucky, and Indiana.