Time as an Instrument

Gallatin River – 2004

Montana

Path and Phases

The transition from your career is a process that is usually lengthy. When it is well-planned, it is typically executed in sequential phases that are comprised of tasks that build upon the previous ones.

The most challenging of these phases is usually the first. This is when you come to terms with the fact that your transition from practice is in your foreseeable future. It is natural for reactions to vary widely from joy of anticipation to apprehension and perhaps some stress. The experience is commonly a blend of both.

Regardless of how you perceive this phase of your life, you will probably experience a sense of loss that is accompanied by excitement about great anticipations. It is beneficial to think of this process as what it really is: a transition, rather than a “retirement.” The term transition emphasizes its purpose: to experience renewal and fulfillment, a form of positive transformation.

 Retirement closes doors; transition opens new ones.

Proactive vs. Reactive

In order to optimize the benefits of your transition, it is very beneficial for you to take timely control of the process rather than finding yourself reacting late to the challenges you will encounter.

You will be able to expect some of these challenges, but you will not be able to anticipate many others as your path is through unfamiliar terrain. For many years you have been comfortably familiar with practicing skillfully and confidently. These are the natural result of substantial education and experience. Now, you are at the beginning of a major life transition, discovering unfamiliar matters you have to deal with as you wonder what else lies ahead.

The cumulative impact that these concerns can have on you may delay your decision to take the first step.

For these and other reasons, that first step is often the hardest and is easy to postpone. However, once taken, you will find yourself progressing solidly on your path of planning and execution.

The First Step

This is your personal acknowledgment of what you are experiencing and the likelihood of additional, new challenges ahead. You will probably recognize, correctly, that this process requires a methodology that will naturally empower you to lead yourself, your family and your staff to accomplish your goals. 

It is wise to seek guidance from diverse professionals that will comprise your external transition team. It is also necessary to create an internal transition team that is comprised of current members of your staff. This is essential to get the support you need to accomplish your transition smoothly while you are taking care of your patients with excellence and safety.

Your transition is a process, not an event. The methodology to accomplish it consists of several plans and phases that build upon previous ones and flow in a natural, sequential manner.

The First Plan

The focus of this plan is on preparing yourself and your family. It is best expressed by the creation of your Post Career Lifestyle Plan. This is undertaken privately with your spouse and described in writing. It should include a preliminary budget.

The Second Plan

The creation of your Post Career Financial Plan is different from your retirement plan. It should be prepared in consultation with a financial professional, such as a Certified Financial Planner, to whom you will have presented your lifestyle plan in advance. Its purpose is to determine whether your financial resources will support your future lifestyle. 

If it does, you can proceed with confidence. If it does not, at the present time, you can make adjustments in your lifestyle plan and/or your financial resources. This latter concern may have a direct impact on your desired time to stop practicing, and whether you will do so completely or in a staged fashion.

Without these two plans, you are much more likely to experience delays born of indecision. This, combined with the possible human experience of procrastination, can be a significant obstacle to your progress. 

On the other hand, the creation of these plans will not only serve as a blueprint of the process, but it will also facilitate making many decisions in a timely manner as you navigate you path.

The Third Plan

The purpose of the End of Career Transition Plan is to prepare your practice for a succession or sale to a financial institution such as a family office. This plan is applicable whether you are in solo or group practice. 

This overall plan reflects a methodology that is comprised of three phases.

The first phase is to undertake an objective evaluation of your practice to ensure that it’s functioning optimally from an operational and profitability perspective.

The second is to consider ways in which you can optimize its current profitability and value. This can be done in various ways that will also prepare it for a prospective buyer. Examples are adding services, particularly those that are recurrent in nature.

The third is to prepare the practice to offer it for a private succession sale or to a financial institution. An important, time-consuming task is the preparation of a myriad of documents that are necessary for a prospective buyer to undertake due diligence. This data is also essential for the preparation of a third party valuation of your practice. 

These data should be organized and ready to present upon request prior to announcing that you are offering to sell your practice.

Another consideration is to evaluate the readiness of your practice for the introduction  of a new associate. This includes an assessment of physical space, staff, scheduling, etc. You will also need to prepare for the introduction of your new associate. Examples are various forms of credentialing, introduction to your patients, medical colleagues, the broader medical community, etc. Think of what you needed when you began your practice and consider them in its present context.

In the case of a private sale or perhaps an institutional purchase, you will need to determine the criteria that will guide the recruiting of an associate as well as a financial institution.

Your career transition plan is essential to prepare your practice to “go to market.”

Different Experiences

Without these three plans, you are much more likely to experience delays born of indecision. This, combined with the possible human experience of procrastination, can be a significant obstacle to your progress. 

On the other hand, the creation of these plans will not only serve as a blueprint of the process, but it will also facilitate making many decisions in a timely manner as you navigate you path.

Your Time, Your Tool

Physicians employ a broad range of approaches to begin preparations to transition from practice. Some delay too long so that there is little time to prepare. This can severely limit your options. Then there are those who begin to plan in a timely manner. This will typically occur when they begin to foresee their end of career, often about five years in advance. In this latter instance, there’s a greater opportunity to implement a methodology in a timely manner. This favors evaluating what is often a broader range of opportunities and options.

To delay is to forgo the opportunity of using time to your advantage. To be proactive is to use your time as an effective tool to accomplish your goals.

 Plan. Prepare. Prosper. _TM 

 Updated: April 26, 2024

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

If you would like to learn about another way that I can guide you, check out this brief video that describes my unique online course: 

 The Practice Transition Course for Physicians. _TM     

Madison River – 2004

Yellowstone National Park