The issue of repossession came to the attention of the Housing Minister, John Healey, who is concerned about the legal protection of tenants when their rented property is being repossessed due to the financial instability of their landlords.

 Mortgage borrowers have the right to purchase a property and let it out without their lenders’ consent; yet, by doing so will leave their tenants at risk. Under the economic climate, some of the landlords are struggling with their money and are unable to deal with their mortgage loan. The only way to solve this problem is for the lender to repossess the property. In this situation, tenants have limited rights upon the issue and are left to face eviction at short notice.

This problem of repossession on rental properties has become more serious that CLG (Communities and Local Government) estimated around 2,000-3,000 letting households would be affected by repossession this year. John Healey criticised that tenants facing eviction through no fault of their own is wrong and unfair. To justify it, the Housing Minister proposed to change the law by establishing strong legal protection on tenants relating to the issue.

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PRACTICE MANAGEMENT CONTRACTS:

STATE OF THE LAW

The use of management contracts to create a business relationship between a professional practice, usually a medical practice, and a practice management entity is a longstanding and widespread practice.  Businessmen often want to “partner” with, or at least profit from, medical practices.  Medical professionals, on the other hand, find themselves consumed with compliance requirements which constantly cascade upon them from regulatory bodies at all levels.  These include new billing forms and documentation requirements, patient confidentiality requirements and the increasing need to compete in a managed care environment where fees are compressed by payors but paperwork increases.  At the same time, “miracles of modern medicine” are constantly being produced.  From the latest drug to the latest medical instrument, device or procedure, doctors are expected to know it all and to be up to the minute.  Patients demand it and if it is not provided, these patients can become plaintiffs in malpractice actions.

It is not surprising, therefore, that practice management companies with their promise of relieving doctors from all but the clinical responsibilities of the medical practice have proliferated.  There are a number of large, publicly traded practice management companies such as Phycor and Medpartners, but there are many, many small management companies that provide services to as few as one medical practice.  All have one thing in common: a contractual relationship between the medical practice and the management company which describes and delineates the business and legal relationship.

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