Patient Abandonment in Healthcare Practices: Legal, Ethical, and Clinical Implications

In modern commerce, disputes are sometimes unavoidable. Even well-drafted contracts cannot prevent every disagreement about performance, payment, or interpretation. When conflicts arise, businesses must choose how those disputes will be resolved. Increasingly, companies are opting for arbitration rather than traditional courtroom litigation, and for good reason. Arbitration offers a faster, more efficient, and more specialized path to resolving business conflicts while preserving valuable commercial relationships. One of the most significant advantages of arbitration is speed. Court litigation can take years to resolve due to congested dockets, procedural delays, and multiple layers of appeals. Arbitration, by contrast, is designed to move quickly. Parties typically set their own timelines with the arbitrator, hearings can be scheduled sooner than court trials, and the procedural framework is streamlined. For businesses that need certainty and closure to move forward, this efficiency is invaluable. Cost is another critical factor. Litigation often involves extensive discovery, numerous motions, and prolonged court proceedings, all of which drive up legal fees and operational disruption. Arbitration generally limits discovery and procedural formalities, which can substantially reduce costs. While arbitrators’ fees must be paid by the parties, the overall expense of arbitration is often lower because disputes are resolved more quickly and with fewer procedural hurdles. Arbitration also provides expertise that courts may lack. In litigation, judges and juries may not have specialized knowledge of the industry involved in the dispute. Arbitration allows parties to select an arbitrator with relevant experience, whether in healthcare, finance, construction, technology, or another complex sector. This expertise can lead to more informed decisions and a better understanding of the commercial context of the dispute. Confidentiality is another important advantage. Court proceedings are typically public, meaning sensitive business information may become part of the public record. Arbitration proceedings, however, are generally private. This privacy helps protect trade secrets, proprietary information, and reputational interests, which is an especially important consideration for companies operating in competitive markets. Additionally, arbitration offers greater flexibility and control. Parties can tailor procedures to fit the needs of the dispute, including selecting the governing rules, the location of the arbitration, and the qualifications of the arbitrator. This level of customization allows businesses to design a dispute-resolution process that aligns with their operational priorities. Finally, arbitration can help preserve business relationships. Litigation is often adversarial and public, which can permanently damage commercial partnerships. Arbitration’s private and less formal setting may encourage cooperation and facilitate settlements, allowing parties to resolve disputes without completely destroying the possibility of future collaboration. Of course, arbitration is not perfect. Limited appeal rights mean that an unfavorable decision is usually final, and in some cases the cost savings may not be as significant as anticipated. Nevertheless, for many business contracts, the benefits of arbitration—speed, efficiency, expertise, confidentiality, and flexibility—make it an attractive alternative to litigation. Questions or comments? Please contact us at (646) 213-9044 or info@andrieuxlaw.com .

Starting a business is an exciting step, but one of the most important early decisions an entrepreneur makes is whether to formally establish a business entity. While some individuals begin as sole proprietors by default, forming a legal structure such as a corporation or limited liability company (LLC) can provide significant financial, legal, and operational advantages. Choosing the right entity lays a foundation for long-term stability and growth. Limited Liability Protection One of the primary benefits of forming a business entity is personal liability protection. When operating as a sole proprietor, there is no legal distinction between the owner and the business. This means personal assets such as a home, savings, or vehicles may be at risk if the business faces lawsuits or debt. By contrast, forming an entity creates a separate legal identity. Business structures such as corporations or LLCs generally shield owners from personal responsibility for business obligations, provided legal formalities are maintained. This separation significantly reduces personal financial exposure and encourages responsible risk-taking. Tax Advantages and Flexibility Forming a business entity may offer meaningful tax benefits. Different structures are taxed in different ways, allowing owners to select an arrangement aligned with their financial goals. For example, an LLC typically benefits from pass-through taxation, meaning profits and losses are reported on the owners’ personal tax returns, avoiding double taxation. Alternatively, some businesses elect S corporation status to potentially reduce self-employment taxes. Larger enterprises may choose a C corporation to retain earnings for expansion, though this structure involves taxation at both the corporate level and the personal level. This flexibility to choose how a business is taxed can lead to significant savings and strategic advantages over time. Enhanced Credibility and Professional Image Forming a business entity can improve credibility with customers, vendors, and financial institutions. Operating under a registered business name and formal structure signals professionalism and long-term commitment. Clients and partners often feel more confident entering contracts with a legally recognized company rather than an individual. Additionally, banks and investors are more likely to provide funding to established entities, especially corporations or LLCs with proper documentation and governance structures. Easier Access to Capital Raising capital is often easier when a business is formally structured. Corporations, in particular, can issue shares of stock to attract investors. While LLCs cannot issue stock in the same way, they can admit new members and allocate ownership interests. A structured entity also allows for clearer financial reporting, ownership percentages, and profit distribution agreements—elements that investors and lenders require before committing funds. Continuity and Transferability Another major advantage is continuity. Sole proprietorships typically dissolve upon the owner’s death or departure. In contrast, corporations and LLCs can continue operating regardless of changes in ownership. Ownership interests can be transferred or sold, making succession planning and exit strategies more manageable. This continuity enhances business stability and long-term planning. Structured Management and Growth Formal entities provide a framework for governance and decision-making. Corporations, for instance, establish roles such as directors and officers, creating clear lines of authority. LLCs can define management structures in operating agreements, reducing ambiguity and potential disputes. As a company grows, this structure becomes increasingly valuable. It clarifies responsibilities, protects stakeholder interests, and supports scalable operations. Conclusion Forming a business entity is more than a bureaucratic step; it is a strategic decision that influences liability protection, tax treatment, credibility, funding opportunities, and long-term sustainability. While each structure has distinct advantages and regulatory requirements, establishing a formal entity provides entrepreneurs with a stronger legal and financial foundation. Careful planning and professional guidance can ensure that the chosen structure aligns with your business’s goals and growth trajectory. Questions or comments? Please contact us at (646) 213-9044 or info@andrieuxlaw.com .

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Under the New York Worker Adjustment and Retraining Notification (WARN) Act, if you employ 50 or more individuals, 90 days’ written notice is required if at least 25 employees will experience certain types of employment losses, including more than a 50% reduction in hours per month for a 6-month period or a furlough/layoff lasting more than 6 months. Notice must also be given to the affected employees and/or their representatives, the New York Department of Labor, and the Local Workforce Investment Board. Failing to comply with the WARN Act can result in liability for back wages and lost benefits, as well as civil penalties. The WARN Act does not apply if the reduction in hours or furlough/layoff is carried out as part of a Shared Work Program through the NY Department of Labor, in which the employees receive unemployment benefits to partially compensate for their reduced wages. However, the WARN Act will apply if the wage reductions or furloughs/layoffs persist after the Shared Work Program ends. There is also a limited exception to the 90-day notice requirement for unforeseeable business circumstances. An unforeseeable circumstance must not have been reasonably foreseeable when the 90-day notice would have been required (for example, if the clinic’s major funding source collapses suddenly and without warning). Even in these situations, employers are still required to provide as much notice as practicable. For our out-of-state readers, the Federal WARN Act which applies to employers with 100 or more employees and requires 60 days’ written notice. Questions or comments? Please contact us at  (646) 213-9044  or  info@andrieuxlaw.com  .

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CLOSING COSTS PAID BY THE BUYER In addition to the purchase price of the property, buyers should be prepared to pay certain out-of-pocket expenses at or prior to the closing. The most typical of these include: Attorneys’ fees: Charged by your real estate attorney to prepare and review the contract of sale and perform title clearance activities. Courier fee: Paid to the title closer for the transportation of paper documents. Property inspection: Even if an inspection isn’t required, it’s wise to get one to help uncover any issues with the property before you buy it. Property insurance: Protects against physical damage to your property and personal belongings due to fire, wind, and other perils; and other risks that occur after you purchase the property, such as theft or injury to a third party. Property taxes: If the seller has paid property taxes for a period beyond the closing date, you can expect to reimburse the seller your pro rata share of such payment. Recording fee: Charged by the county for recording public land records, such as deeds and mortgages. Survey fee: Charged by a surveying company to confirm a property’s boundaries. Title insurance: Protects against financial losses arising from issues with the property’s title, such as liens (e.g., unpaid taxes, mortgages), encroachments (e.g., a neighbor’s fence on your property), title defects (e.g., errors in public records). title fraud, and other ownership disputes that existed before you bought the property. Title searches: The buyer is responsible for hiring a title company to search property records to ensure there aren’t any known issues with the property’s title, such as judgment or tax liens. CLOSING COSTS PAID BY THE SELLER Although buyers bear the bulk of closing costs, sellers don’t get off scot-free. As a seller, you’ll typically pay your own attorneys’ fees; your pro rata share of property taxes if, as of the closing date, you haven’t paid the taxes for the current period; and a transfer tax imposed by the state to transfer title to the buyer. Questions or comments? Please contact us at  (646) 213-9044  or  info@andrieuxlaw.com  .

During a HIPAA audit, the Office for Civil Rights (OCR) examines an organization’s compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA), focusing on policies, procedures, and practices related to protecting patient information, including administrative, physical, and technical safeguards. The following is an overview of what the OCR looks for in a HIPAA audit: Policies and Procedures. Review of written policies related to HIPAA, including Privacy, Security, and Breach Notification Rules. Administrative Safeguards. Assessment of data access management, employee training on HIPAA, and security policy implementation. Physical Safeguards. Evaluation of physical security for protecting both electronic and paper health information. Technical Safeguards. Review of technologies used to protect electronic health information (ePHI), such as encryption and access controls. Training. Confirmation that staff are properly trained on HIPAA regulations and the organization’s policies. Breach Notification Procedures. Examination of processes for detecting, investigating, and reporting HIPAA breaches. Audit Trails. Checking if audit trails are maintained to monitor access to ePHI. Risk Analysis. Assessment to ensure a thorough risk analysis is done to find and reduce vulnerabilities. Compliance with Specific Requirements. The OCR may focus on specific requirements of the Privacy, Security, or Breach Notification Rules, or may examine a broader scope of requirements. HIPAA violations can result in both civil and criminal penalties, including fines ranging from $141 to over $2 million, and even potential imprisonment for intentional violations. Avoid these excessive consequences of non-compliance: It all starts with your HIPAA policies and procedures, which will guide your practice in tackling the issues listed above to become (and stay) HIPAA compliant. Questions or concerns about your HIPAA compliance practices? Please contact us at  (646) 213-9044  or  info@andrieuxlaw.com  .

Beneficial ownership information (“BOI”) reporting under the Corporate Transparency Act has been reinstated after the nationwide injunction in the Smith case was stayed on February 17, 2025. For most reporting companies, the new deadline to file a BOI report is now March 21, 2025. The U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) is evaluating potential exemptions for so-called “low-risk entities” and assessing options to further modify deadlines (while prioritizing reporting for entities that pose the most significant risks to national security). However, FinCEN has not yet provided any details or additional guidance. Although the House of Representatives has passed a bipartisan bill to extend the deadline to January 1, 2026, the Senate has yet to act. So, there is no guarantee that this extension will become law. Accordingly, businesses should not rely on court rulings or pending legislation for relief. If the deadline holds, last-minute filers may face system overloads and risk penalties for late filings or non-compliance. Questions or comments? Please contact us at  (646) 213-9044  or  info@andrieuxlaw.com  .

In December, the U.S Department of Health and Human Services Office of Civil Rights (“OCR”) imposed a civil penalty of $548,265 against a healthcare facility (the “Facility”) in Colorado for a series of HIPAA violations. The first violation stemmed from a data breach in 2017 resulting from a phishing attack that compromised an employee’s email account. OCR’s investigation revealed that the breach occurred because the 2-factor authentication (“2FA”) feature on the employee’s email account had been disabled by the IT department and was not reactivated. While 2FA is not explicitly required by HIPAA (it is, however, recommended to add an extra layer of security by requiring multiple login credentials to access data), it was the method of security chosen by the Facility and was not properly enabled at the time of the attack. According to OCR, the second breach occurred in 2020 because two employees granted unknown third parties access to their email accounts by accepting 2FA access requests that neither employee initiated. OCR also determined that the Facility violated HIPAA by failing to train nursing students on clinical rotation who had access to PHI, as well as failing to complete a risk analysis to determine the risks and vulnerabilities to ePHI in the organization’s information technology systems. Among other things, risk analyses are intended to discover and address precisely these types of issues, i.e., whether 2FA (or any other security tools) are disabled or otherwise not functioning as they should, or whether employees are properly safeguarding access to data. The Facility is now liable for over half-a-million dollars for failing to implement HIPAA-mandated policies and procedures, which are designed to prevent incidents like these. Simply having appropriate HIPAA documentation and training programs in place could have saved the Facility from much, if not all, of the liability here, even if the breaches nevertheless occurred. After all, accidents do happen. But if they happen because you weren’t prepared, that’s when you face a fortune in fines from the OCR. Questions or concerns about your HIPAA compliance practices? Please contact us at  (646) 213-9044  or  info@andrieuxlaw.com  .