Connecticut Management Services Agreement Guide: Fixed Fees, Group Notice Rules and Practice-Only Corporations
Connecticut's professional corporation may do no business other than professional services and its management agreement should be a fixed fee and not a share of profit or revenue, a direction the failed 2026 bill pointed to.
Key Highlights
- The professional corporation statute bars any business other than the professional services, with investments and property incident to practice allowed.
- We found no Connecticut fee-splitting ground in the physician discipline statute and no authority on percentage fees.
- Non-competes are capped at one year and fifteen miles and are unenforceable if the employer terminates without cause.
- A material change to a group practice involving eight or more physicians requires 30 days' notice to the Attorney General.
How to Price the Management Fee
We could not verify any Connecticut fee-splitting authority, and the discipline grounds we read list no fee-splitting or referral-fee ground. The 2026 House bill that passed the House would have exempted a practice-MSO association in which the MSO is paid fair market value by contract and not through profit or revenue sharing, and it is not law but shows direction, so we use a fixed fair-market fee.
What the Practice Must Keep
The corporation may do no business beyond the professional services, services are rendered only through licensed people, and the Department of Public Health may not regulate business practices such as ownership, so enforcement runs through the corporation statute, licensing and general law. The agreement keeps clinical decisions and supervision with the practice.
Terms to Avoid
Avoid a share of profit or revenue, any ownership in the practice by an unlicensed person, and any arrangement that lets the management company direct professional judgment.
Term, Records and Departing Clinicians
Non-competes are valid only if necessary to protect a legitimate business interest and reasonable, capped at one year and fifteen miles, and unenforceable if the employer terminates without cause. We do not use them for employed clinicians.
Filings, Notices and Watch Items
A material change to a group practice requires 30 days' notice to the Attorney General when it results in a group of eight or more physicians or involves a hospital, system, captive professional entity or medical foundation, and a start-up practice with an MSO and no merger or acquisition does not appear to trigger it. The medical spa statute requires an in-person assessment before each person's procedure.
Drafting Checklist
- Fee: fixed fair market, not profit or revenue.
- Corporation: no business beyond professional services.
- Control: clinical decisions with the practice.
- Non-competes: none for employed clinicians.
- Notice: watch the eight-physician threshold on any merger.
How We Draft It
Patients pay the physician-owned practice, the practice pays the management company a fixed monthly fee under the agreement, and the management company pays MedGrid a fixed monthly retainer for consulting. The management company never practices medicine, and the agreement never moves a clinical decision to it. Our template follows the same flat-fee design in every state, with the state-specific limits below layered on top.
Disclaimer
This article is general educational information, not legal advice. Management agreement rules change and differ by state, and this summary draws on our published state guide, parts of which rest on secondary sources, so have health care counsel in the state review any agreement before you sign.
MedGrid MSO provides management services to independently owned practices; it does not practise medicine and does not direct clinical decisions. Requirements vary by state and by service, and change over time — nothing on this page is legal or medical advice. Talk to us or your own counsel before making a structural decision for your clinic.