• Save
Succession Planning Tips for Orthopedic Surgeons
 

Succession Planning Tips for Orthopedic Surgeons

on

  • 1,066 views

Succession planning tips for Healthcare professionals from the experts featuring key points on naming new leaders and recruiting successors from Scott Kiefer, vice president of the Oliver Group, a PI ...

Succession planning tips for Healthcare professionals from the experts featuring key points on naming new leaders and recruiting successors from Scott Kiefer, vice president of the Oliver Group, a PI Worldwide Member Firm.

Succession planning is important for orthopedic surgeons to maximize returns from their practice as they head on to greener pastures. If a good plan isn't in place, surgeons risk soiling a good relationship with their partners and losing a great deal of money.

Statistics

Views

Total Views
1,066
Views on SlideShare
1,066
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • That completes our review of fourth quarter and full year 2006 results I would now like to turn your attention to our Investor Day presentations…..

Succession Planning Tips for Orthopedic Surgeons  Succession Planning Tips for Orthopedic Surgeons Presentation Transcript

  • Succession Planning Tips for Orthopedic Surgeons Scott Kiefer Vice President Oliver Group – PI Worldwide Member Firm
  • Roadmap
    • 1. Background
    • 2. Plan Early
    • 3. The Right Time To Retire
    • 4. Valuation of The Practice
    • 5. Selling The Practice
    • 6. Naming New Leaders
    • 7. Recruiting Successors
    • 8. Old Debt & Surgeon Contracts
    • 9. Transitioning Patients
  • Background
    • Succession Planning Is Important For Orthopedic Surgeons To Maximize Returns From Their Practice As They Head On To Greener Pastures
    • If A Good Plan Isn't In Place, Surgeons Risk Soiling A Good Relationship With Their Partners And Losing A Great Deal Of Money
    • Lot Of Physicians Build Up A Practice And Don't Think It Through Far Enough In Advance About Their Retirement, So They Don't Get A Whole Lot Out Of Selling Their Practice
  • Plan Early
    • Ideally, Orthopedic Practices Should Have A Succession Plan Written From Inception And Every Surgeon Who Becomes A Partner Must Agree To The Plan At That Time
    • If A Plan Wasn't Created At The Onset, Orthopedic Surgeons Should Begin Succession Planning At Least Five Years Before They Plan On Retiring Because The Transition Can Easily Take Two Or More Years To Complete
    • Physicians Are Often Unprepared For The Final Moment When They Move On
    • Have A Team In Place From The Onset That Enables You To Create A Practice That Runs Like A Business Because There Will Be Issues And Consideration With Taxes, Stark Laws And Liability
    • Surgeons Can Either Look Internally Or Externally For The Surgeon Who Will Succeed Them
    • If The Practice Is Large Enough, The Senior Partner Can Recruit A Junior Partner To Take On The Shares After Retirement
    Plan Early
    • The Succession Process Includes Several Steps:
      • Writing An Agreement For Succession Planning Between The Surgeon And The Practice
      • Locating A Successor For The Practice
      • Performing Valuation Of The Practice
      • Initiating And Completing The Financial Transaction
      • Transitioning Patients To The New Surgeon
    • The Thought About 'What Is Going To Happen If We Aren't Here' Is An Exercise That Senior Surgeons Need To Get Involved In As Soon As They Can
    Plan Early
  • The Right Time To Retire
    • Predetermining A Plan For Professional Growth Allows Surgeons To Rise Within The Ranks And Eventually Retire
    • They Begin As Employees And Gradually Become Partner And Then Senior Partner
    • In This Situation, The Practice Often Specifies How Long A Surgeon Can Stay In Each Role And When It Will Be Appropriate To Retire
    • If The Highest Level Is A Senior Partner, And Surgeons Can Only Be A Senior Partner For A Certain Number Of Years, It Won't Come As A Surprise To Anyone When They Reach The Age Of Retirement
    • In These Situations, The Practice Often Has Junior Partners Poised To Take The Position Of Senior Partners, And The Transition Is Smoother Because The Succeeding Surgeon Is Already Familiar With The Practice
    • In This Situation, Everyone Is Clear As To What The Procedure Is And They Understand What Will Be Expected When A Senior Partner Is Going To Leave
    The Right Time To Retire
  • Valuation of The Practice
    • Before Selling The Practice, The Retiring Surgeon Must Have A Third Party Conduct A Practice Valuation
    • Make Sure The Valuation Company Is Experienced In The Medical World And Will Be Able To Understand The Unique Challenges Associated With The Medical Practice
    • Valuation Of The Practice Is Extremely Important And Shouldn't Wait Until A Surgeon Is Ready To Retire Before Being Conducted
  • Selling The Practice
    • Surgeons Who Want To Sell Their Shares In A Practice Must Devise A Plan For Making Sure The Transaction Is Smooth And Amicable
    • This Can Be Tricky Because Retiring Surgeons Want To Make Sure They Receive Their Fair Compensation For The Practice They've Built Without Completely Bankrupting The Practice For Their Partners
    • If Succeeding Surgeons Aren't In A Position To Purchase The Entire Shares Upfront, They Need To Work With A Bank To Finance The Practice
  • Naming New Leaders
    • Look At The Practice To Realize Where The Gaps In Leadership Or Success Are And Identify The Person Or Type Of Person Who Would Best Fulfill Those Needs
    • An Ideal Leader Would Have Both Business Experience And An Outstanding Clinical Reputation
    • When You Are Selecting Or Promoting A Surgeon From Within, There Is Education That Takes Place In Helping Them Understand The Differences Between Being An Individual Contributor And Moving Them Into A Leader Of The Practice
    • Few Key Steps To Make Sure The Transition Into A Leadership Position Is Smooth And Positive:
      • Give The New Leader Access To An Executive Coach To Develop New Leadership Skills
      • Provide A Forum For Feedback From Staff And Patients
      • Enact Operational Changes To Encourage A Slow Incorporation Of New Responsibilities
      • Have The Exiting Owner Or Senior Partner Sponsor The New Leader Into That Role
    • It's A Fundamental Mindset Shift When A Surgeon Goes From Being An Individual Contributor To Leader Of The Pack
    Naming New Leaders
  • Recruiting Successors
    • In A Medium Or Large Group Practice, Surgeons Most Likely Have A Junior Surgeon In Mind Who Will Step Into The Leadership Role Vacated By A Retiring Surgeon
    • However, The Group Still Needs To Sustain Patient Volume And May Consider Recruiting A New Junior Surgeon From Outside The Practice
    • We Can Measure The Operating Style Or Personality Of The Leader Of An Organization As Well As The Staff Members Of The Organization And Figure Out How To Move Forward
  • Old Debt & Surgeon Contracts
    • When Physicians Are Ready To Retire And Leave Their Practice, There Are Several Financial Considerations Associated With Even The Most Successful Pract ices
    • If The Practice Owns Real Estate Or Leases Building Space, Both Retiring And Acquiring Surgeons Must Be Aware Of Whether The Departing Physician Will Continue To Be Response For Any Debt Or Lease Obligations
    • You Have To Deal With The Issue Of Whether The Retiring Surgeon Is Released From Being A Guarantor Anymore
    • In Addition To Real Estate, Retiring Surgeons May Have Taken On Capital Loans Or Lines Of Credit They Are Personally Liable For During Their Career
    • The Practice Or Group Should Talk About Whether The Retiring Surgeons Will Have To Pay That Back Immediately And How They Will Pay For It
    • For Managed Care Contracts, The Practice Or Group Must Consider Providing For Termination Or Change In Status When Physicians Leave The Practice
    Old Debt & Surgeon Contracts
    • Be Mindful Of Slowly Introducing Patients To The New Surgeon
    • Patients May Not Want To Accept The New Physician At First, Especially If They Have A Long Relationship With The Retiring Surgeon
    • Undoubtedly, If You Are Replacing A Senior Partner With Someone Young, There Might Be Resistance
    • Having The Support Of The Retiring Surgeon Is Really Helpful For The New Surgeon To Build A Patient Base
    Transitioning Patients
    • New Surgeons Can Also Give Presentations And Appear At Group Events So Medical Professionals And Patients Become More Familiar With Them
    • To Help With This Transition, Have The Surgeon Who Is Leaving Introduce The Succeeding Surgeon To The Patients
    • Bring The Successors Into Situations Where They Can Meet With Referral Sources So The Referring Parties Start To Feel Comfortable With The Successor
    Transitioning Patients
  • Want to Know More?
    • Succession Planning Tips For Healthcare Professionals From The Experts
    • http://bit.ly/Succession_Planning
    • Thank you!
    • Questions? [email_address] | @piworldwide
    • http://www.linkedin.com/in/piworldwide
    • More Information: http://www.piworldwide.com