Medical Practice Accounting and Valuation Support in Alberta

An Alberta medical professional corporation is not created by a single form. The College of Physicians and Surgeons of Alberta explains that a physician needs a professional-corporation permit in addition to the corporate registration process, and the physician's individual practice permit remains separate. Alberta Health also maintains business forms for health professionals, including changes to business arrangements.

Prepare a simple entity map showing the physician, professional corporation, clinic operator, associates, management company and property company, if any. Add the contracts, bank accounts, payroll accounts, billing numbers, leases and equipment owned by each entity. This prevents revenue, expenses and assets from being attributed to the wrong party during incorporation, succession or a proposed transaction.

A medical practice review usually needs more than annual tax returns. Reconcile billings and other revenue to deposits, explain receivable timing, separate physician compensation from staff payroll and identify clinic overhead shared with associates. Track capital equipment, leasehold improvements, financing and commitments by legal owner.

Provider dependence deserves its own schedule. Show revenue by provider or service category only to the level that is necessary and lawful, and explain coverage, associate agreements and owner hours. Avoid assuming that a patient list, billing relationship, referral pattern or professional goodwill can be freely transferred. Regulatory, contractual and privacy advice is needed for the actual transition.

Alberta's Health Information Act governs the collection, use, disclosure and protection of health information in the provincial health system. Financial diligence does not automatically justify sharing identifiable patient data. Use aggregated or de-identified financial schedules wherever possible, restrict data-room access and obtain privacy and legal guidance before any disclosure involving health information.

For a purchase or sale, define whether the proposal concerns shares, operating assets, equipment, leases or service arrangements. CRA's guidance on buying an existing business explains that asset and share transactions can produce different tax and GST/HST consequences. These accounting questions should be coordinated with CPSA requirements, privacy responsibilities and the transaction documents.

HBT Accounting provides accounting, financial-record preparation and tax support. Formal business valuations, legal opinions and transaction documents may require a Chartered Business Valuator and lawyer. The right approach depends on the facts, valuation date and purpose of the work.