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Physician Contract Glossary · Ownership & Partnership

Equity Ownership

Equity ownership is a real stake in the practice entity, carrying profit distributions and usually voting rights, distinct from a bonus or title.

Equity ownership means you own a piece of the practice itself: you share in profits, you typically vote on decisions, and you benefit if the practice grows or sells. It is the difference between being a partner in name and a partner in fact. Many associate tracks dangle the word partner without true equity, so what matters is whether you get distributions and a vote, not the title.

WHAT TO WATCH FOR

Before celebrating a partnership offer, confirm it is real equity with profit distributions and voting rights, not a senior salary with a label. Get the buy-in price, the valuation method, and the rights in writing.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

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