07 Feb Here’s how to plan for winding down a medical practice
A number of my clients are medical professionals and part of our service to them is exit strategy planning. Here are some tips for successfully planning to wind down a medical practice.
Medical professionals spend the majority of their lives training for, then practicing their specialty. It makes sense to approach your practice as a going concern when such a significant amount of time and financial resources have been invested. A comprehensive exit strategy or wind down plan will help to protect your earnings and assets and create diversified sources of income for your retirement.
A key piece of advice to all medical professionals is to develop a retirement and succession plan long before you exit. This gives the financial strategies time to work and to preserve the value of your practice and ensure future revenue by recruiting and training younger professionals.
One option is to work part-time or serve as a consultant for a few years before full retirement. Doing this would allow you to maintain some income, remain professionally challenged, and evaluate and groom potential successors. After years of developing a successful practice and a sound referral base, it takes time to transition that hard work and goodwill to younger partners.
For those approaching or contemplating retirement there are a number of things to consider:
- Start thinking about it NOW and plan ahead;
- Consider winding down your work hours to part time or consulting as a transition phase;
- Seek professional tax, accounting and legal advice as part of preparation;
- Review your existing corporate structures, to ensure that they allow for flexibility for future sale or involvement of a partner or associate;
- Think about what you can sell, and to whom it may be sold; and
- Know your intentions in relation to patients and their records as part of a future plan to retirement.
Small steps now can give you peace of mind and allow you to shift your focus to the future. If you would like to discuss your exit strategy please contact me firstname.lastname@example.org