Top 4 Tips for Succession Planning

Christopher Mann and Logan Lutton explain in this piece published by Physicians Practice four ways for physicians in private practices to plan for their retirement or reduced role in their practice, and how to make that transition as smooth as possible. The consequences of failing to prepare appropriately can be financially damaging and can leave even a prospering practice in a state of uncertainty. Worse, it can lead to dissolution.

The top four tips they offer for succession planning are as follows:

1. Plan. There’s no such thing as “too early,” but there is certainly such thing as “too late.”
2. Stay realistic. One of the most common issues physicians encounter when it comes to self-evaluating their practice is inflated financial expectations.
3. Consider continuity. How you handle your transition out of practice can have a significant impact on the value of the transaction.
4. Set the records straight. An often overlooked part of succession planning is compliance with applicable medical records laws. Physicians are deemed to have legal custody of a patient’s medical records, and must comply with certain laws when selling a practice.