Understanding Succession Planning  

Category: Practice Management

Introduction:
Dr. Smith has been practicing as a solo practitioner in New York for many years; although he currently has a very successful practice, due to personal circumstances, Dr. Smith is ready to retire.  As retirement approaches for Dr. Smith, what are his options with respect to his medical practice?  Dr. Smith has essentially two options: he can either sell his practice or just close shop .   Although Dr. Smith would ideally like to sell his practice, the unfortunate reality is that his practice will not be worth as much to a potential buyer since the potential buyer does not know Dr. Smith's patients and there will likely be attrition with respect to patients of the practice.  Unfortunately, many physicians find themselves in a similar situation; however, this can be avoided by planning ahead.
 
Successi...