Background:
A statutory health insurance practice licence (Vertragsarztzulassung) conveys a highly personal, public-law status right entitling the holder to treat patients with statutory health insurance and to bill the statutory health insurance funds for services rendered. In areas subject to licensing restrictions, the licence is granted under a so-called reassignment procedure (see § 103 SGB V) and cannot be sold directly by the licence holder to an acquirer.
Nevertheless, practice transfer agreements often contain provisions on transferring the licence to the practice acquirer and an obligation on the part of the licence holder to cooperate in the reassignment procedure.
Recent BFH Decisions:
The BFH has now ruled in two judgments that, when a statutory health insurance practice is acquired, no further intangible asset in the form of the "economic advantage associated with a statutory health insurance practice licence" is generally acquired in addition to the goodwill, see BFH judgments of 21 February 2017, VII R 7/14 and VIII R 224/16.
If, however, exceptionally the statutory health insurance practice licence is the sole subject of the purchase agreement, the object of purchase constitutes an independent, intangible, depreciable asset.
Practical Advice:
In order not to lose the depreciation benefits on the acquisition of statutory health insurance practice licences, when taking over a practice consideration should be given to initially acquiring only the goodwill and relocating the practice site at a later date.
Source: BFH online
Frequently asked questions
Frequently asked questions
Is a panel doctor licence (Vertragsarztzulassung) a depreciable asset?
In principle, the Vertragsarztzulassung is a strictly personal, public-law status right and cannot be transferred directly. It only qualifies as an independent, intangible and depreciable asset if the licence alone is the subject of the purchase agreement. In this specific case, depreciation is permissible.
How did the BFH assess the acquisition of a panel doctor's practice for tax purposes?
In its rulings of 21 February 2017 (VII R 7/14 and VIII R 224/16), the BFH held that the acquisition of a panel doctor's practice does not entail the acquisition of a separate intangible asset representing the economic benefit of the panel doctor licence in addition to the practice goodwill. The benefit of the licence is therefore absorbed into the depreciable practice goodwill.
When is the economic benefit from a statutory health insurance practice license regarded as a separate asset?
According to BFH case law, a separate intangible asset exists only if the statutory health insurance practice license alone is the subject of the purchase agreement and not an entire medical practice. Only in this case can the purchase price be depreciated as a depreciable asset over its useful life.
How can depreciation options be secured when acquiring a contracted physician's practice?
Buyers should consider acquiring only the practice goodwill initially and relocating the practice seat at a later stage. This way, the economic benefit of the licensing approval flows into the depreciable practice goodwill instead of being lost as a non-depreciable item.
What is the successor selection procedure under section 103 SGB V?
In regions with admission restrictions, a contract physician's license cannot be sold directly by the holder to a buyer. Instead, the license is reassigned through a successor selection procedure, in which the admissions committee decides on the transfer. Practice transfer agreements therefore often include cooperation obligations on the part of the previous license holder.