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Often, sharing office space and consolidating resources promote the mutual interests of the parties by conserving resources and adding an additional physician to a busy practice. Whether a doctor currently owns and operates office space as a medical office or merely rents such space, they may wish to share the space by leasing or sub-leasing the use of such office space and facilities. The parties should understand that they will both use the premises exclusively for the practice of medicine by and through their own individual practices at any and all reasonable times and that they may, and likely will, be utilizing the office at the same time. For purposes of clarity, the terms Landlord and Tenant shall apply notwithstanding the possibility that both the parties are tenants.

Referral disclaimer

In most states, fees given in exchange for referrals are illegal and regarded as against the best interests of the general public. Landlord and tenant should represent and warrant to each other that the agreement is not made for purposes of causing or securing a fee or other compensation for the referral of patients. In addition, rent and expense payments charged should not include any discount, rebate, kickback or other reduction in charge which could be construed as an inducement or payment for referral of patients by landlord to tenant or by tenant to landlord.

Scope of lease
In addition to all the other terms and conditions that are present in any commercial office lease agreement, the parties should set out specific terms and conditions related to the practice of medicine. To begin with, the parties should detail how they will distribute the costs of a shared office including, but not limited to the expenses of a back office staff, medical and business equipment, medical and office supplies, and any and all other items incidental and normal to the ordinary operation of a medical doctor's office.


Each party should be solely responsible for their own supplies and expenses incurred in the ordinary operation of their respective medical practices. If applicable, tenant should pay landlord tenant's proportional share of such expenses incurred by landlord for supplies and ordinary expenses used by tenant, subject to a final itemized accounting of the expenses.

Office staff
The parties should have the same authority to direct and supervise the office staff. The parties should cooperate with each other in all management decisions relating to office staff. The landlord should consult with the tenant prior to exercising a decision and the landlord should use his best efforts to take into consideration the best interests of the tenant. The parties should share equally the expense of maintaining a front and back office staff. Tenant should pay landlord tenant's proportional share of such expenses subject to a [mal itemized accounting of the expenses related to maintaining such staff.

Additional equipment
The parties should have the right to purchase and retain exclusive ownership in various medical and business equipment, which will be used exclusively for his own individual medical practice. Notwithstanding such rights, in keeping with the intent of this particular professional relationship, which is being contemplated in order to benefit each party's practice, each party should agree to consult with the other party prior to purchasing any particular item or device which would substantially benefit the practice.


Billing and collecting should be performed independently for each party. Each party should maintain his own provider numbers, billing records, bank accounts, etc.. Not withstanding such, the billing and collecting function may be performed by the same members of the office staff.

Malpractice insurance
Each party should be solely responsible for securing and paying for their own malpractice insurance.

Corporate accounts
Each party should be solely responsible for the proper administration of their respective professional corporations including, but not limited to, corporate banking accounts, taxes and returns, applicable insurance, resolutions, annual fees, and all other manner of effort and/or expense related to properly maintaining the corporate structure.

Existing Patients
Each respective physician's existing roster of patients should be retained by that particular physician's practice. Patient visits for patients who are captivated to either party should be scheduled to be seen by the applicable captivated physician.

New Patients

New patients who walk-in or call to schedule an appointment should be assigned on an equal, alternating basis.


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