Spring 2006 issue of Horizons

INDUSTRY

HEALTH CARE

Life Cycle of a Health Care Practice

P ART 1--T HE N EW D OCTOR

This article is the first in a series of three dealing with the life cycle of a health care career. (The complete series is avail- able at http://www.rubinbrown.com/.) Every health care pro- fessional must decide if it is better to open a practice or work for an existing practice. After that decision, the solo doctor must decide if and when to bring in “The New Doctor.” Once there is more than one doctor, the practice must create the “The Best Compensation System.” Eventually every practice must face the fact that the mature doctor may want “To Retire or Cut Back.” If you are in residency, you will eventually have to make the “Big” decision. Will you open your own practice or join an existing practice? The answer to that question needs to be made after a careful assessment of your personal capabili- ties and the state of the medical profession where you want to practice medicine. There are tools (ie. check lists) avail- able to young doctors that RubinBrown can supply. Or a member of our Health Care Services Group can meet and discuss options with you at different stages in your career. This article is relevant for the individual practitioner who decided to “go it alone” and is now addressing the decision of if and when to bring in another doctor. If you are a single practitioner who has built up a busy prac- tice that now needs an associate, or if you are a well-estab- lished doctor who wants to slow down or exit the practice, you must consider adding a new doctor. Start planning 12 to 24 months in advance. The plan should consider how to bring in a new doctor and if, when, and/or how the incoming doc- tor may eventually become your partner or remain your asso- ciate. It also is necessary to plan and have prepared the legal documents needed for signature and how the new doctor will be compensated.

Dan Bindler, CPA Tonja Hilton, CPA

29 • spring 2006 issue