Fall 2014 issue of Horizons

HEALTHCARE

Succession Planning for Medical Practices and Physicians by Tom Zetlmeisl, CPA, CFE, CFF

S uccession planning is an often overlooked aspect of long-term planning for nearly all professions – and medical professionals are no different. Physicians spend their careers building their medical practices, yet many do not adequately plan for their futures or the futures of their practices. Almost half of all physicians are over the age of 50 and approaching retirement, and most would list a comfortable retirement as an important financial goal. However, many physicians and physician groups do not have a clear plan as to how to leverage the value of their practices when a physician decides to exit or reduce his/her responsibilities.

Succession planning requires physicians to plan their futures, as well as the futures of their practices, and then implement these plans. It cannot be accomplished last minute. It must be put in place many years before succession actually takes place. Components to the Plan Succession planning is essential to maximize the value of the practice and smoothly transition patients to new providers without compromising care. As a physician practice begins the succession planning process, it is important that senior management is involved and supports the plan. This will also help ensure there is consistency and transparency in the plan. The physician team should,

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