Medical Practice Management
Jun 07

What to do when a physician shareholder leaves the medical practice

Here are some typical actions by the medicadl practice:

– Notices to staff (do immediately after decision was made)
– Notices to patients (usually goes out about 45 days before departure date)
– Notices to referring physicians
– Malpractice tail
– Stock redemption (per shareholder agreement)
– Deferred compensation calculation (if applicable per employment agreement)
– Change checking account signatures (if he or she is a signer)
– Get back corporate credit card
– Recoupe any pre-paid expenses, e.g. licenses, hospital and professional association dues, etc. (depends on what your contract says and whether you want to go to that micro level)
– Notify payors the physician is no longer with group
– Review status of personal guarantees on practice financial obligations
– Clear out physician's office
– COBRA issues
– Retirement plan close-out
– Vacation reconciliation and payout or recoupment

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 →