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 the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.