“If you are a solo practitioner, an unplanned—or hastily planned—succession can have some horrible effects, not only on the practice, but also on the doctor’s family and their financial situation,” says Mr. Mann. “Should something happen to a large group, it is certainly not a good thing, but the practice can generally withstand that. Succession can be a big issue for two- or three-member practices, but is not as likely to be practice ending.”
Begin Now
The best time to begin succession planning is immediately. Whether in a single- or multi-person practice, the doctor should focus on some things pretty much from the day they start the job: One is to consider who will be taking over the patients in an emergency situation.
Mr. Keller
“I always encourage solo doctors to reach out to others in the community who might be able to see their patients,” says Mr. Swanson. “Even if you are the only rheumatologist in the area, you [may] be able to make arrangements for the primary care [physician] down the street to cover [for you]. In bigger areas with more rheumatologists, check in with the other specialists in your vicinity, and make reciprocal agreements that are mutually beneficial.”
These interactions may be the basis for selling the practice should an emergency arise. Both solo physicians and smaller group practices could have agreements in place to buy each other out at a set price, if needed. For larger groups, these issues are often addressed in the buy–sell agreements that are put in place in the practice structure agreements between the partners or shareholders.
