The sustainability and growth of medical practices are critically dependent on effective succession or transition planning. Historical compensation structures and buyout agreements, often established years ago, might not be fair or scalable and may no longer align with market conditions or the strategic direction of the practice. This presentation aims to address the pressing need for practices to revisit and update these frameworks to ensure they remain relevant and supportive of long-term objectives. The challenge of structuring equitable buyout arrangements is magnified in environments where senior physicians' exit plans inadvertently hinder recruitment and growth. Practice executives should proactively envision the future economic landscape post-founder or senior physician retirement, planning for and modeling future obligations with a forward-looking perspective. This session will empower attendees to critically evaluate existing agreements and understand the importance of adapting them to the evolving market. We will explore strategies to balance the interests of retiring physicians with the imperative of practice growth and the attraction of new talent. Participants will be encouraged to reflect on their own practices' scenarios regarding succession planning and the integration of founding physicians' exit strategies with practice expansion goals.
Learning Objectives:
Inspect end-of-career obligations and their impact on practice sustainability
Distinguish opportunities to prioritize long-term growth and success over individual interests
Prepare negotiations that are fair and equitable while supporting the practice’s growth and attractiveness to new physicians
