Practice Management

As long as it outside the boundaries of the shareholders restrictive covenant, time spent during his/her vacation or off time from the practice, and doesn't interfere with their ability to practice within your practice, does it matter?

That being said, I would look internally first (senior partners selling days, needed coverage, etc.) first.

Sheila,

Our group does not allow it by contract either, as I suspect is the case in most groups.  We expect owner/partners to devote 100% of their effort to their business.  In my opinion, this is appropriate and is what business owners should expect from their business partners. 

That's not to say a shareholder couldn't request to amend their contract to allow outside work.  Every shareholder is likely to be able to make a motion at their Board meeting requesting such an amendment, and give them the opportunity to state their case for allowing him/her to work elsewhere.  If it is a reasonable request, it could very well be approved.  This keeps the group in control over the nature, type, and amount of work each shareholder can engage in outside their practice – a degree of control that, in my mind, a Group should have over and expect from their co-owners.   

In all my years I recall two such requests, one approved and one denied – both for the right reasons given the circumstances.  I shudder to think how much of a Wild West circus a group could find itself in if their contacts allowed the individual shareholder to make this decision based on their own self-interest and without regard of their other business partners.  

Mike Bohl

Strategic Advisor

Going back to my statement – Our group prohibits moonlighting, but upon petition to the practice, it can be granted/waived but must follow guidelines stated in previous email.