Financial Monitoring in Online Medical Practice: Risks and Recommendations

With the development of technology, more and more doctors are switching to providing medical services online. This practice opens up new opportunities for patients, simplifying access to consultations and treatment. However, at the same time, the risk of financial violations is growing and the attention of regulatory authorities is increasing.

What does financial monitoring of a doctor mean?

Financial monitoring concerns the verification and control of financial transactions carried out within the framework of medical activities. This includes supervision of income, expenses, as well as transactions related to the receipt of fees/payment for medical services. Financial monitoring helps to ensure that the doctor's activities comply with the law, for example in terms of taxation, avoidance of shadow transactions or money laundering.

Reasons for conducting a financial audit:

• Preventing money laundering – online medical practice can be used to hide illegal funds.
• Tax compliance – consultations often involve electronic payments, and it is important to ensure that they are correctly reported and declared for taxes.
• Control over payment for services – during online practice, doctors can receive funds from various sources (patients, insurance companies, international payment systems).
• Fighting corruption and fraud – provides an opportunity to identify and prevent cases of corruption or financial abuse in the medical field.
• Ensuring transparency of financial transactions – reduces the risk of legal/financial problems, such as claims from patients due to payments.

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For what financial transactions does a doctor fall under financial monitoring?

1. Recurring one-time payments from patients.
2. Frequent international stories.
3. Using questionable or little-known payment systems.
4. Abnormal financial flows (if funds are constantly being credited to the doctor's account without any obvious reason or there are significant deviations in the usual financial flow).
5. Transactions with large amounts of funds via bank transfers.
6. Lack of detailed income reports.
7. Transactions with non-residents.

Legal recommendations for doctors to protect themselves from financial monitoring

To avoid problems with financial monitoring and ensure transparency of their activities, it is important for doctors practicing online or offline to comply with legal regulations:

1. Officially register a sole proprietorship. A doctor providing medical services should register themselves as a sole proprietor or choose another form of business, which will allow them to conduct transparent business activities. We also recommend choosing the optimal taxation system - general or simplified.
2. Obtain a medical license. To legally practice medicine in Ukraine, you need to obtain a license for medical activities. If you do not know how to obtain a license, contact the lawyers of the Prikhodko & Partners Law Firm.
3. Conclude contracts with patients for the provision of medical services. It is advisable to conclude a contract with the patient for each consultation. This can be either a written or electronic contract.
4. Payment for services should be transparent. Use licensed payment systems and avoid cash payments.
5. Do not forget about filing mandatory tax reports. A sole proprietorship doctor must register tax returns within the established deadlines.
6. Provide complete confidentiality to clients.
7. Use the services of a financial consultant or accountant to prevent errors in financial accounting and tax reporting.
8. Comply with currency laws when working with patients from abroad.
9. Develop your internal documentation, including contracts, rules, and statements.

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How can we help?

The company "Prikhodko and Partners" provides comprehensive support to doctors and helps in solving complex issues related to medical law.

By contacting us, you will receive:

• Assistance in preparing all necessary documents for obtaining a license for medical activities.
• Consultations on the legitimacy of providing medical services on the Internet, including concluding contracts with patients, compliance with personal data protection, and confidentiality requirements.
• Correct selection of the form of taxation, support in the process of filing tax returns and reports.
• In case of conflict situations or claims, we will provide consultations and represent interests in court.
• Maintenance of financial reporting and protection from possible audits by tax authorities.

Prikhodko and Partners Law Firm is your reliable partner that will protect your medical activities from legal and financial risks. If you have any legal questions in the medical field, send a request in the form below, and our lawyer will call you within a day.