Practice tip of the week: Practice Succession: Transferring to Your Children

With all the useful information available on Physicians Practice, it is easy to become overwhelmed.

With this in mind, the tip of the week is a chance to reflect on some of the wisdom found all across the site. In a February 2021 story on transitioning your practice to your children, Nick Hernandez, MBA, FACHE writes the following:

“Conversations around the next generation of leadership are inherently more complicated and emotional due to family dynamics, individual expectations, and financial concerns. In the end, there are several major reasons that transitions from the founding physician to the succeeding son or daughter tend to fail:

• Lack of will: the founding physician simply doesn’t want to give up control
• Lack of viability: the practice is so dependent on the founding physician that it cannot operate without his or her continued, active participation
• Lack of planning: the successors aren't prepared, trained or experienced enough to take over management of the practice

So, how then should you start the succession planning process and transitioning of the practice to your children? Consider these key focus areas:

1. Begin an open conversation
2. Establish a talent development plan
3. Formalize the succession process; prepare an exit plan
4. Groom the successor; respect the transition of power”

Click here for the rest article. Be sure to come back next week for another Tip of the Week!