Articles Written By Our Practice Brokers

Transition Consultant's associate, Chris Majdi, will be speaking as part of panel discussion at the Orange County Medical Association on Retirement Planning for Physicians, entitled The ABC's of Retirement Preparation. Event details and RSVP information are below.

Selling On Your Own Terms: The Condition of Your Practice

Selling on your own terms hinges on two decisive issues: your timeframe and the condition of your practice. We cannot stress enough the importance of advanced planning for a medical practice transaction. Previously we had written about implementing your exit strategy within a 2-year period. Proper exit planning and financial preparation are critical for a smooth transition. A good timeline allows the seller to maintain control of the process while being flexible under unforeseen circumstances.

U.S. Health and Human Services (HHS) recently announced that 106 new accountable care organizations (ACOs) have been formed to serve up to 4 million Medicare beneficiaries. Half of the ACOs are physician-led and about 20% serve rural and low-income communities. Fifteen new ACOs will participate in the Advanced Payment Model, bringing the total to 35 ACOs under this program. Medicare beneficiaries will continue to have the freedom to select their doctors, whether inside or outside the ACOs. Choosing doctors within the ACO will allow for better coordinated care and reduced utilization. According to HHS, ACO provisions are beginning to slow down the Medicare spending growth rate.

Transition Consultants recently sold three excellent practices. One was a family medical practice located in Orange County, California grossing over $720,000. It is situated in a freestanding office building with 5 exam rooms, 2 MD offices and a lab room. We also sold a profitable optometry practice in desirable Palm Beach County, Florida. With a good mix of dispensing and professional services, the practice collects over $900,000 annually. Sales included all assets, patient files, goodwill, experienced staff & transition assistance. Lastly, our optometry practice sales group completed the sale of a practice in North Carolina. We have more high-quality opportunities available. Visit our website at http://transitionconsultants.com and call us at 800-416-2055 for more information.

Exit Planning for Retiring Doctors

You have worked for decades seeing patients day in and day out. Perhaps you plan to sell your practice someday. But now what? When should you assemble your advisors and contact a practice broker?

Doctors considering retirement often wonder about how and when the transition begins. We believe the perfect window of time for implementing your exit strategy is 1-2 years. It usually takes a year or more to secure a buyer and negotiate a deal. In addition, the selling doctor assists the buyer for several months (or longer) to insure a smooth transition. Some sellers, as part of their agreement, remain with the practice as a part-time associate—in some cases, indefinitely. Others walk away knowing their patients will continue to be served. Either way two years is enough time for the practice transition itself. Yes, you will need to move quickly, but this can be viewed as a benefit rather than a downside.