How should a physician go about getting buy-in from partners?

It cannot be stressed enough how important it is to have candid and open communication with all parties. Deals have blown up at the 11th hour or in the red zone (to use a football term) because of trust, when it could have been prevented with better buy-in and consistent OVERcommunication.

Some of the pros to selling your surgery center (a huge part of getting partner buy-ins): 

  • Convert future income into today’s dollars with advantageous tax rate-pay capital gains rates today rather than income rates over time.
  • Take money off the table and diversify your investments.
  • Reduce your risk exposure and debt-no one has a crystal ball to see what the future holds, all business ownership carries risk.
  • Better management, contracts, pricing, improved physician recruitment, efficiencies.
  • In some cases you get your life back, meaning someone else is responsible for the IT problems, personal problems, replacing that nurse of office staff, etc. and you can concentrate on practicing medicine.

Some of the cons of selling your surgery center are:

  • You are no long the only decision maker; now you have a corporate partner.
  • Have to pay management fees, and in some cases pay even if you are not making a profit.
  • You have to share the future performance of the center.
  • You might have chosen the wrong partner and they may not benefit you long term.

You need to speak with the partners and discuss the pros and cons of selling your ambulatory surgery center and keep them informed throughout the process in order to keep that buy-in. This needs to be spoken about early on and not held until later in the process or it can kill the deal. Buyers want partners who are serious about the transaction, can make decisions and know what they want and do not want. Do not wait until you are in the negotiation stage to educate and get the buy-in of your physicians. You do not want them learning about this piecemeal though half-true rumors, which leads to assumptions and problems.

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Category: Selling My Ambulatory Surgical Center
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