Setup Progress
PRIME, LLC — Formation & Launch Status · Fiscal Year 2026
75%
Overall Readiness · March 2026
Documents are substantially complete. Three critical execution tracks remain open. No management obligations should be assumed until all tracks are resolved and the MSA is executed.
⚡ Track 1 — Practice Transition Docs
⚡ Track 2 — Payer Credentialing
⚡ Track 3 — FMV Opinion & MSA
Launch Phase OverviewPhase 1 — Active
PHASE 01
This Week
Critical · Immediate
Engage CA counsel
Start credentialing
Payer inventory
Commission FMV
Start credentialing
Payer inventory
Commission FMV
● In Progress
PHASE 02
Weeks 1–4
High Priority
File entities
Form PC
Review agreements
Draft transition docs
Form PC
Review agreements
Draft transition docs
○ Upcoming
PHASE 03
Weeks 4–10
Medium Priority
Finalize MSA
Attach exhibits
Execute agreement
Attach exhibits
Execute agreement
○ Upcoming
PHASE 04
Month 3+
Future
IPA evaluation
Multi-practice expansion
Value-based care
Multi-practice expansion
Value-based care
○ Future
Readiness Breakdown
15-Item Action Plan
Prioritized launch checklist — update status as items are completed
All Action ItemsClick checkbox to mark complete
| # | Action Item | Owner | Timeline | Priority |
|---|
Financials
PRIME, LLC — P&L & Revenue · Illustrative · FY 2026
Projected Annual Revenue
$421,710
2 physicians · FY 2026
Projected Net Profit
$297,557
70.6% margin
Total Operating Expenses
$124,153
29.4% of revenue
Est. Partner Distribution
$74,389
25% of net profit
Revenue by Physician
3-Year Projection
Monthly P&L Summary · Q2 2026
| Line Item | Acct # | April | May | June | Q2 Total | % Rev |
|---|---|---|---|---|---|---|
| REVENUE | ||||||
| Fixed Fee — Dr. Farr | 4010 | — | $10,000 | $10,000 | $20,000 | 4.7% |
| Performance Fee — Dr. Farr | 4020 | — | $10,500 | $10,850 | $21,350 | 5.1% |
| Fixed Fee — Dr. Stidham | 4030 | — | $12,000 | $12,000 | $24,000 | 5.7% |
| Performance Fee — Dr. Stidham | 4040 | — | $12,600 | $12,950 | $25,550 | 6.1% |
| TOTAL REVENUE | — | $45,100 | $45,800 | $90,900 | 21.5% | |
| OPERATING EXPENSES | ||||||
| Personnel (Robbins + Kemps) | 6010/20 | — | $8,000 | $8,000 | $16,000 | 3.8% |
| Technology & Software | 6100 | $1,200 | $99 | $99 | $1,398 | 0.3% |
| Insurance | 6300 | $4,000 | — | — | $4,000 | 0.9% |
| Legal & Professional | 6400 | $7,500 | — | — | $7,500 | 1.8% |
| TOTAL EXPENSES | $13,069 | $9,618 | $9,618 | $32,305 | 7.7% | |
| NET PROFIT / (LOSS) | ($13,069) | $35,482 | $36,182 | $58,595 | 13.9% | |
| Partner Distribution (25%) | — | $8,871 | $9,046 | $17,916 | ||
General Ledger
PRIME, LLC · All transactions · Illustrative · FY 2026
Transaction RegisterQuickBooks Online mirrors this structure
| Ref # | Date | Description | Account | Debit | Credit | Balance | Status |
|---|
Partner Distributions
PRIME, LLC — Member equity & projected distributions · FY 2026
Total Net Profit (Proj.)
$297,557
FY 2026 projected
Distribution Pool (25%)
$74,389
Available to partners
Active Partners
4
Barry · Chris · Chase · Glen
Retained in PRIME
$223,168
75% reinvestment / reserve
Capital Contributions & Projected Distributions
Partner
Capital In
Equity %
Proj. Distribution
01
Barry Johnson
Managing Member · Channel Holdings, LLC
$10,000
57.1%
$42,476
02
Chris Robbins
Client Relations
$2,500
14.3%
$10,638
03
Chase Kemps
Insurance Billing & Collections
$2,500
14.3%
$10,638
04
Glen Pangilinan
Role TBD
$2,500
14.3%
$10,638
Total
$17,500
100%
$74,390
Startup Cost Ledger — Reimbursement Tracking
| Item | Vendor | Date | Amount | Fronted By | Status |
|---|---|---|---|---|---|
| CA SOS Filing Fee | CA Secretary of State | 04/03/26 | $70 | Barry | Paid |
| LLC Formation Service | Zen Business | 04/03/26 | $299 | Barry | Paid |
| Healthcare Counsel Retainer | Meurer & Potter Legal | 04/05/26 | $2,500 | Barry | Pending |
| QuickBooks Online (Annual) | Intuit QuickBooks | 04/05/26 | $1,200 | Barry | Paid |
| Mac Mini M4 Pro | Apple Inc. | 04/06/26 | $1,399 | Barry | Pending |
| General Liability Insurance | Insurance Carrier | 04/10/26 | $2,500 | Barry | TBD |
| Cyber Liability Insurance | Insurance Carrier | 04/10/26 | $1,500 | Barry | TBD |
| FMV Opinion (Deposit) | VMG Health | 04/15/26 | $5,000 | Barry | TBD |
| Total Startup Costs | $14,468 |
MSA Status
Management Services Agreement — Draft v1 · March 17, 2026
Articles Complete
10 / 10
All articles drafted
Exhibits Ready
1 / 3
Exhibit A complete
Open Items
7
Must resolve pre-execution
Counsel Review
Needed
CA healthcare transactional
Exhibit Status
Exhibit A
MSO Services Schedule — Complete
9 service categories fully documented. All clinical exclusions stated.
Exhibit B
HIPAA Business Associate Agreement — Not Attached
Required before any PHI access. Draft from DHHS model or counsel.
Exhibit C
FMV Opinion — Not Attached
Cannot execute MSA until FMV opinion is in hand. Budget $8–15K, 4–8 weeks.
Open Items — Pre-Execution
Management fee % is blank
Commission FMV opinion from VMG Health, Ankura, or Coker Group.
Entity names are placeholder brackets
File MSO LLC with CA SOS. Confirm PC name.
No non-compete / exclusivity clause
Recommended — prevents Practice from engaging a competing MSO.
No EHR / PM system specification
Add to Exhibit A or Article 2 to avoid future disputes.
Arbitration city / venue is blank
Recommend San Diego or Los Angeles.
Article Summary
| Article | Subject | Key Provision | Status |
|---|---|---|---|
| Art. 1 | Definitions | FMV, Net Collections, Management Services, Term defined | Complete |
| Art. 2 | Management Services | Scope, clinical exclusions explicit, medical assistant direction | Complete |
| Art. 3 | Practice Obligations | Clinical authority 100% retained by Practice physicians | Complete |
| Art. 4 | Management Fee | FMV required · No referral consideration · Audit rights | Fee % Blank |
| Art. 5 | HIPAA & Confidentiality | BAA required as Exhibit B · CMIA compliance addressed | BAA Needed |
| Art. 6 | Term & Termination | 3-year initial term · 60-day transition assistance · Regulatory exit | Complete |
| Art. 7 | Representations | Full compliance · AKS · Stark · CPOM warranties | Complete |
| Art. 8 | Insurance | GL $1M/$2M · EPL $1M · Cyber $1M · Mal $1M/$3M | Complete |
| Art. 9 | Dispute Resolution | Informal → Mediation → JAMS Arbitration · Healthcare arbitrator | City Blank |
| Art. 10 | General Provisions | Independent contractors · CA law · No assignment without consent | Complete |
Physician Clients
PRIME managed physician clients · Revenue & invoice ledger
Dr. Morteza Farr, D.O.
Dr. Morteza Farr, D.O., INC. · Orthopedic Surgery · Self-Employed · No Non-Compete
Fixed Monthly Fee
$10,000
Performance Fee
7% Net
Q2 Total Revenue
$62,260
Avg Net Collections
$155,750
Status
Active
Dr. Kalle Stidham, M.D.
GoOrthopedic · Orthopedic Surgery · Self-Employed · No Non-Compete
Fixed Monthly Fee
$12,000
Performance Fee
7% Net
Q2 Total Revenue
$74,850
Avg Net Collections
$183,750
Status
Active
Client Revenue Ledger — Apr–Jul 2026
| Inv # | Month | Client | Fixed Fee | Net Collections | Perf Fee (7%) | Total Invoice | Status |
|---|---|---|---|---|---|---|---|
| DR. MORTEZA FARR, D.O. | |||||||
| INV-001 | Apr 2026 | Dr. Farr, D.O., INC. | $10,000 | $150,000 | $10,500 | $20,500 | Paid 05/15 |
| INV-003 | May 2026 | Dr. Farr, D.O., INC. | $10,000 | $155,000 | $10,850 | $20,850 | Paid 06/15 |
| INV-005 | Jun 2026 | Dr. Farr, D.O., INC. | $10,000 | $158,000 | $11,060 | $21,060 | Paid 07/15 |
| INV-007 | Jul 2026 | Dr. Farr, D.O., INC. | $10,000 | $160,000 | $11,200 | $21,200 | Pending |
| DR. KALLE STIDHAM, M.D. | |||||||
| INV-002 | Apr 2026 | GoOrthopedic | $12,000 | $180,000 | $12,600 | $24,600 | Paid 05/15 |
| INV-004 | May 2026 | GoOrthopedic | $12,000 | $185,000 | $12,950 | $24,950 | Paid 06/15 |
| INV-006 | Jun 2026 | GoOrthopedic | $12,000 | $190,000 | $13,300 | $25,300 | Paid 07/15 |
| INV-008 | Jul 2026 | GoOrthopedic | $12,000 | $195,000 | $13,650 | $25,650 | Pending |
My Dashboard
Managed by PRIME · Channel Holdings, LLC
My Invoice History
| Inv # | Month | Fixed Fee | Net Collections | Perf Fee (7%) | Total | Status |
|---|
Services Managed by PRIME
✅ Revenue Cycle Management
✅ Insurance Verification
✅ Prior Authorization
✅ Medical Coding Oversight
✅ Claims Submission
✅ Insurance Verification
✅ Prior Authorization
✅ Medical Coding Oversight
✅ Claims Submission
✅ Denial Management
✅ Credentialing & Payer Relations
✅ CAQH Administration
✅ Compliance Program
✅ HIPAA Privacy & Security
✅ Credentialing & Payer Relations
✅ CAQH Administration
✅ Compliance Program
✅ HIPAA Privacy & Security
✅ HR & Staffing Admin
✅ Monthly Financial Reporting
✅ MIPS / Quality Reporting
✅ Marketing & Patient Relations
✅ KPI Dashboard
✅ Monthly Financial Reporting
✅ MIPS / Quality Reporting
✅ Marketing & Patient Relations
✅ KPI Dashboard
My Invoices
Management fee invoices — PRIME, LLC
Complete Invoice Register
| Inv # | Month | Fixed Fee | Net Collections | Perf Fee (7%) | Total Invoice | Status |
|---|