A profitable partnership survives a crisis

Bhanu*, a doctor and shareholder in a medical practice, was concerned when he saw several transactions in the company bank accounts that he had not authorised,adding up to around $20,000. He found out that

two companies, each owned by other doctors in the practice, had been invoicing for services that Bhanu was unaware of.

He felt cheated by his colleagues, and was concerned not only about the money, but about whether the medical practice could continue at all.

Although Bhanu could have pursued the matter in court, and explored what the corporate regulator could do, he also wanted to keep working in what was still aprofitable practice.

Wisely, Bhanu first tried mediation.

With the help of the mediator, the other doctors were able to explain that as they were majority shareholders, they were entitled to make these sorts of decisions on behalf of the business. When they had to change how they were operating during COVID-19, their individual companies provided valuable support to the shared practice.

Bhanu was able to understand their thinking and accept an apology from the other partners in the practice. Through mediation, the other doctors realised that
their strategy appeared to be an unfair distribution of profits. But Bhanu was also able to see the benefit of outsourcing critical services quickly during a crisis.

Finally, they made an agreement that saw an adjustment in the distribution of profits, and ensured that the successful business (making around $500,000 in a year) was able to continue for the benefit of all.

* All names have been changed.