The importance of succession planning in general practice is not often translated into action and I hope that this webpage spurs you into considering your succession plan and hopefully a role for myself in its implementation.
I firmly believe in traditional general practice and its goal of providing comprehensive, compassionate family health care yet I appreciate that all general practices are unique in the population they serve, the style of medicine each doctor provides and the relationship the practice has with its staff and community.
It is my goal to continue your legacy and I have little intention of disrupting processes that have served you so well. In my practices, I am very flexible with hours, consulting styles and leave and we have a mutual understanding that the demands of general practice necessitate balance to avoid burnout and maintain quality care in a positive environment. While practice-wide policies and systems are required in any business and are frequently reviewed, I do not micromanage doctors, nor would I wish to be micromanaged.
As a practicing GP with an MBA (from a leading US business school), I believe I am uniquely qualified to run a general practice.
My point of differentiation from other general practice buyers is that I understand the business of running general practices AND the demands of practicing modern medicine. Unlike a corporate group with its layers of management, I will be actively involved in the running of the practice and will be responsive to your concerns.
A rising problem with group practices is that many similarly aged partners wish to transition into retirement. Unfortunately, as partners generally share costs, any reduction in a partner’s billings (such as by reducing sessions) results in a double dip loss of income as costs often remain fixed no matter what a partner earns; i.e., the less you work, the higher the percentage of earnings you pay in administration costs. This creates a perverse incentive to maintain your clinical load and often leads to partners leaving in quick succession and the eventual closure of the practice.
Secondly, the younger generation of GPs is less willing to make a commitment of joining a partnership. As each partner chooses to leave and is not replaced, the value of the business diminishes exponentially, while the administrative burden on remaining partners increases. My business model is to facilitate retirement transitions in the belief that a well-run practice in a good location will be able to recruit doctors to share your clinical load if you choose to reduce it, thereby ensuring the viability of the practice into the future.
My business model is to pay you a fair market price for your business. This includes goodwill which may be 100% tax exempt depending on your age and financial circumstances. In exchange, I will administer your practice and collect a percentage of your gross billings as a service fee. In essence, you will enjoy the same conditions and freedom as your current assistants without the burden of administration. As I am primarily interested in buying your business and not property, if you own your premises, you will have the added return of having a secure tenant and a continuing passive income stream.
Thank you for taking the time to read this letter and if you wish to contact me, please feel free to call me on 0428 881 527 or email me at email@example.com. All conversations will be afforded the strictest confidence.
I look forward to hearing from you.
Dr Declan Green
Advocate Medical Group