Preparing for a New Physician

Fulfillment and Renewal – 2017

Sierra Nevada, NV

Designing the Foundation of Success

The introduction of a new physician, whether in a succession or as part of the purchase of your practice by a private equity firm, requires that various preparations be made well in advance. 

The methodology to do so involves three projects that are executed in a particular order. Each will lay the foundation for the subsequent stages.

• The first is to optimize the performance of your practice. 
• The second is to maximize its profitability and thereby its value.
• The third is the actual preparation to introduce a new physician (via succession or private equity purchase)

This approach applies to a solo or group practice.

First Things First 

At this point it’s essential for you to have considered some things such as:

• How long you will practice.
• Whether to stop practicing gradually or completely. 
• Your role as leader of your transition. 
• Your role as leader and mentor to a younger surgeon. 
• The expectations you have of your colleague and vice-versa.
• Your philosophy that will be reflected in employment, future partnership and exit strategy  whether in a succession or private equity purchase scenario.

The New Physician Preparation Plan

This is the third plan in the sequence that addresses different aspects of achieving readiness.

Prior to recruiting a physician or offering your practice for an outright sale, it is important to have certain tasks completed. Some of these are:

• Completion of a set of data for a prospective associate or private equity firm to undertake due diligence.
• Obtain a third-party professional valuation.
• Your description of criteria to evaluate an associate and/or private equity firm.
• Succession scenario: preparation of a draft employee agreement that may include the path to partnership and purchase of the practice (early legal advise is essential).
• Create a timeline for recruitment, discussions and executing an agreement with either type of acquisition.

Practical Matters

There are additional practical items to consider, for example:

•  Ensure adequate physical space.
• Consider the relationship of space and scheduling, especially if you have a surgical facility. 
• Evaluate staff needs.
• Involve your staff in preparations; seek their advice.
• Designate key administrative and clinical staff to be a resource for the new plastic surgeon.
• Prepare a schedule for staff meetings that includes your associate.
• Consider a schedule for physician meetings.
• Prepare a plan to support and promote your associate. Introduce him to other physicians, health care facilities and the community. 
• Prepare for a discussion of your mutual expectations.

How Do You Benefit? 

The creation and execution of these plans is a sensible, sequential and practical approach that will guide you to achieve your goals and benefit from them.

Without timely, proper planning, you will likely limit your options and find yourself reacting to circumstances. Alternatively, a proactive approach will increase your options and provide more flexibility to adjust your goals and plans as needed.

The preparation and execution of your plans will provide a clear path marked by tranquility, triumph and success true to your vision.

Updated: November 10, 2023

PS: Would you like to learn more about how to transition from your practice? I would like to help you. I provide practice transaction services that are tailored to your specific needs. Click here to request an introductory conversation. 

The Teton Range – 2008

Grand Teton National Park, WY