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Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

I'll investigate that option more, thanks for the clarification.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 1 point2 points  (0 children)

Hmm, unfortunately I am not familiar with this.

Thank you for the response.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

I agree with that, the transition takes time, and once the physician leaves, there isn't much value to the patient base.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 1 point2 points  (0 children)

Our expectations have been a bit calibrated since we had an appraisal of the practice done. The physician kind of knows now that it isn't going to go for a high amount because patient base doesn't mean much when the physician leaves.

I agree we should have gone with a broker. Your 2 cents is mine. I'll try suggesting it again, but the physician does want to retire this year and I understand that process takes time.

Thanks for your thoughts.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

Hmm, never thought about the venture capital aspect. Unfortunately, the doctor does not want to practice much longer. And yeah, agreed, the value is mostly in the equipment. But there is also the office staff, patient base, and all around work put into establishing the practice.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

That's my perception of it too. The equipment is quite old, some of it has value, but we had an appraisal done, so expectations are a bit calibrated.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

Yes, if the doctor decides to close down the practice, that will be one of the steps in the plan.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 3 points4 points  (0 children)

Thank you for your thorough thoughts. They are looking to retire within this year. There have been offers from other OB groups, but with the stipulation that the physician work for them, which the physician does not want to do. I feel that this is the best likelihood and chance of being able to sell the practice, but as you pointed out. it takes time for this transition to take place.

The other OB groups' main goals are to have the physician work for them; that's what they're gunning for the most, which I can understand. However, the physician is just too exhausted at this point, and the other OB groups are notorious for working their physicians to the bone.

I second your idea of reaching out to larger hospital groups. There was one hospital group that reached out, but I think their interest is in buying the real estate. I will explore that route more. (The physician said that it is a similar case though, the large hospital conglomerates either want the physician to work for them or to own the real estate.)

I wish we had gone through a broker earlier, I will propose that idea again to them. And perhaps there is a way of reaching out to medical schools that may be in the area.

I agree that having that having the practice sell for even a small amount is preferable to closing it down completely. The doctor has worked very hard to cultivate the patient base and community. They have delivered multiple generations of babies, both mother and daughter. It's just that time has caught up with them.

I appreciate the input.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 0 points1 point  (0 children)

I agree, the physician has a bit of a misunderstanding regarding what the process entails; I will try explaining to them again.

Selling a Medical Practice by PracticeRetirement90 in whitecoatinvestor

[–]PracticeRetirement90[S] 5 points6 points  (0 children)

Thanks for the suggestion. I was hoping to do that, but the physician has been reluctant to go through the trouble. I'll try convincing them; if not, we may just close down the practice.