Is it time to bring on an associate or partner physician to your practice? There are many reasons you might consider it. For example, your practice might have become so busy that you have little time with your family — or for yourself. Perhaps your practice volume has grown so much that you need help managing it, or maybe retirement is around the corner and you’re thinking about eventually selling. In any case, it’s important to look at the pros and cons before taking this important step.
Bringing on an associate is a significant decision not unlike hiring an employee, but with higher stakes. Before beginning the process, ask yourself:
After answering these questions to your satisfaction, it’s time to think about where to find a partner or associate. You already may have someone in mind. If not, resources include journals in your specialty, online information and recruiting firms that specialize in physician practices.
Of course, it’s a given that you’ll want to bring on an experienced physician with excellent technical qualifications. But, just as in hiring an employee, and perhaps even more so in the case of a partner or associate, personality is a huge factor. You want to get along with your partners. In addition, it’s important to ensure that the partner or associate understands what your goals are.
For example, if part of your plan is to spend less time in the office, it’s important that the doctor you’re adding to your practice understand that. If the goal is to increase patient volume, he or she needs to know that as well.
Another consideration similar to personality is your practice’s culture. This is the philosophy on which your practice is based. Culture can manifest itself in many ways — for example, whether your interactions with patients and office staff are formal or informal, how staff customarily handles daily operations, and whether staff is willing to extend themselves to assist patients and ensure their satisfaction.
To get a better sense of this, it’s often useful not only to conduct a traditional interview but also to meet the potential associate in a social setting with your staff. Do you and the candidate approach patient care with the same philosophy? Can the candidate meet the goals you’ve set? Is he or she willing to do so? Is the candidate comfortable living and working in the community where your practice is located?
How the partner is to be compensated likely will involve negotiation. Generally, you can take the following three approaches to associate compensation:
Other factors to be negotiated include:
After you make the new associate or partner part of the practice, it doesn’t stop there. It’s important to integrate him or her into the life of your practice. Make an effort to introduce him or her to patients as well as local colleagues. Review practice procedures and protocols together and agree upon them. Educate staff on the associate’s role and how his or her specialties and relationship with the practice should be presented to patients.
Obviously, any associate you agree to bring on will have a stake in the success of the practice. Stay open-minded, and provide him or her with clear and consistent feedback.
Contact Mike Lorenz at mlorenz@cohencpa.com for more information.
Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts and circumstances.