Succession and Retirement Planning for Doctors
"I'm planning to practice medicine for another 10 years...Why should I plan my transition today? "
Even if your time horizon is years ahead, knowing your options today can help you:
- Enhance your practice value and lock it in today
- Position yourself for the effects of healthcare reform
- Make lifestyle decisions on your own terms
- Plan a smooth transition and give you peace of mind
Whether your plan includes an associate buy-in, partnership, merger, or outright sale, knowing the mechanics and ramifications of your plan is important. Having a practice succession plan may mitigate certain risks and afford long term stability.
Preparing Your Practice for Transition
As part of succession planning, some key areas must be considered:
- Practice monetary value: Determine how much the practice is worth in the current market, and how future plans will impact this
- Financial stability: Understand how to maintain strong long-term revenues to make the practice appealing to potential buyers
- Buyer: Securing a buyer, partner, or merger target
- Staff, Patients, and Payors: Arranging credentialing, health plan contracting, and mechanics of the new operation
- Transition: Maintaining the long term success and viability of the practice while securing your phase-out
- Method: Determining the most appropriate avenue for you: Outright sale, partnership, associate-buy-in, joint venture, merger, etc.
- Retirement and Wealth Management: Understanding the transaction, tax, and monetary considerations and how to maximize wealth
All elements mentioned above are part of succession planning and necessary to prepare you and your practice for ongoing success. It is essential to have a healthcare business professional to guide you through this long process and understand the implications of each step. Call us to get a head start on your retirement and succession plan: 800-416-2055.