Medical Centre Trust™
The Medical Centre Trust™ (MCT) provides Medical Professionals with significant benefits over other structures.
It is critical for any business to operate in the optimum structure taking into account the needs for asset protection, estate planning, complexity, flexibility and stakeholders.
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What is the Chan & Naylor Medical Centre Trust™?
The Medical Centre Trust™ (MCT™) was established to provide operational and functional support to the Medical and Dental Practitioner (Practitioner). These functions include:
- Premises for patient consultation
- Medical equipment
- Administration staff
- Specialty staff
- Book keeping services
- Ancillary medical services
Who can use the MCT™?
- See patients at a surgery or other location
- Bill patients individually
- Require the services of a medical centre to provide them with functional support
- The MCT can be used by sole practitioners or multiple practitioners working from the same premises.
Who cannot use the MCT™?
- Practitioners who do not bill patients direct
- Practitioners who already use third party providers to provide operational & functional support
How the MCT™ works
- The Medical Centre provides the required operational functions
- The Practitioner pays for the operational functions on a fee per function basis. The total fee must be market value and is calculated on a percentage of revenue the Medical Practitioner bills. The payment may be approximately 40-50% of gross fees charged to their patients
- The MCT pays all costs associated with the provision of operational functions and retains the difference as a profit
- The MCT profits can be distributed to any nominated beneficiary
- Allows the Practitioner to focus on patient care.
- Assists with providing some additional asset protection and estate planning requirements to the medical practitioner
- In some cases, a profit margin of say 30% (needs to be calculated on a case by case basis) is retained for distribution to trust beneficiaries. The MCT carries a greater business risk and therefore a greater profit potential
- Unlike most typical Service Trusts which are limited to approximately 8% mark up on provision of services, the MCT charges the Practitioner a percentage of the practitioner’s gross billings and then pays out expenses.
- Chan & Naylor provides full documentation including the Medical Centre Trust, the agreement between the medical practitioner and the MCT and written taxation advice by a taxation lawyer plus the ongoing specialised accounting and taxation services which in combination produces the desired advantages