Three Questions Every Physician Should Answer Before Selling a Practice, Joining a Health System, or Signing an Employment Agreement.

Question 1. Does everyone truly understand my practice?

Not just the financial statements-but the people, services, patient demand, referral relationships, staffing, reimbursement, and operational realities that make it successful.

Question 2. Have we developed a realistic plan for what happens after closing?

A purchase price is not a business plan.
Have both parties discussed future services, patient volumes, staffing, physician responsibilities, reimbursement, resources, and financial expectations?

Question 3. What will success look like 24 months after closing?

If everyone believes the transaction was successful two years from today…
What will have happened?

What I’ve learned…

Most physician transaction disappointments occur because important questions were never fully discussed before agreements were signed.
The primary objectives of a completed transaction should include… NO SURPRISES 24 MONTHS LATER.

Healthscope Decision Briefs discuss practical observations from client transactions to help physicians, healthcare organizations, and their advisors make informed business decisions before commitments are made. If you’re contemplating a practice transaction, I’d be pleased to have a confidential discussion before assumptions become commitments.