Medical Practice Management, Personal Financial Planning Oversight
May 18

Design a fair retirement exit

Physicians generally enjoy more flexibility regarding retirement than do members of many other professions. But sometimes a declining doctor refuses to acknowledge his or her diminished capacity, causing a confrontation that's often embarrassing.

You can reduce your chances of facing such a showdown with a sensible mandatory retirement age that includes extension options. First, provide that a doctor must retire at a stated age, often 65 or 70. But allow him or her to apply in advance each year for an extension.

Require the senior to apply at least six months before the mandatory retirement date, after which the group must vote yea or nay within two months. A competent doctor can thus continue past mandatory retirement age if it really suits the member and the group.

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About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →