Back in the early and mid 90’s many doctors considered selling their independent practices to hospitals or merging with larger practice groups.
Many at the time were fearful of what effect “managed care” would have on their practice. Selling out seemed to be the right answer.
Our own clients were not immune. For those who sold, we helped them review contracts, implement incentive payments, and helped them secure a good buy-out.
But not too long after that, we began consulting with doctors returning to private practice once again. The life of an employed doctor, as it turned out, just wasn’t greener on the other side of the fence.
Fear is often a motivating factor for making a change in business. Sometimes the fear is simply that of the unknown.
More of the same today
Fear of uncertainty is just as rampant today as it was 20 years ago. The unfortunate reality is doctors are faced with mounting regulatory unknowns and industry complexity.
Rigid compliance, declining reimbursement, restrictions on ancillary medical services, and mandated electronic records are just some ingredients that crop up during casual conversations.
Add to that list the fact that it is becoming more difficult to recruit young doctors to independent practices. High student loan debt and aggressive hospital recruiting make it difficult for independent sellers to find willing buyers.
Stir in more economic uncertainty to the pot and you have a recipe brewing for a fear-caused movement once again.
Reflect Before You React
While some of the concerns today may seem different than they did before, I still believe that we will find many similarities.
Reactionary decisions, rather than disciplined strategic planning, will be the cause for a future supply of unsatisfied doctors.
If you find yourself asking questions like, “Should I sell?” Or if you are being approached by a hospital, then I would strongly suggest that you stop, drop and roll.
Stop
Before you go any further, take some time to step back and reflect on what is important to you.
Why are you where you are today?
Work through a personal assessment with an independent business consultant or coach.
Understand that selling your practice will not solve all your problems. In fact, it just may introduce some new ones.
Drop
Rid yourself of the notion that you have no choice but to sell.
Today there are many independent doctors and healthcare groups, both small and large, that are not only surviving but thriving!
Work with a healthcare practice management consultant that can help you identify areas of your practice that need improvement and increase your profitability.
Even if the end result is to ultimately sell to the hospital, your increased profitability will put you in a better position to receive a higher purchase price.
Roll
Ultimately you have to come to a decision and be the best you can be as a doctor whether working in a hospital environment or as an independent business owner.
Don’t let fear drive your decisions. Instead, retain a “you can do it” positive attitude.
Assess your personal and business goals regularly. And commit to thinking critically about your role in healthcare reform.
Think Long Term
The decisions we make today will have consequences long into the future.
So, if you are considering changes to the way in which you work, the longer your viewpoint the better. Often the short-term financial consequences that are being presented today are not nearly as good or as bad as what we may think.
In his book, Time to Sell?, Randy Bauman quotes an anonymous doctor that said, “I always have to remind myself that it’s never as good as it seems on the best days and never as bad as it seems on the worst days. That’s how I keep my perspective.”
Tools for Reflection
To help you keep your perspective and to identify the areas of your practice that may be causing you to consider a change, use the following questions that were adopted from Randy Bauman’s book:
Initial Assessment
Self Assessment
Note: No emails or personal information is being requested on the forms. The questions are for self-reflection purposes only. If you do choose to submit your answers, I will be using the anonymous data to gain additional perspective on what doctors are encountering.
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