Offer generous salaries to retain physician-employees

Promoting only those physicians with the needed ownership and entrepreneurial skills solves the problem of having unsatisfactory co-owners. Yet it creates another problem: If clinically qualified young doctors are denied this traditionally important status, how do you retain them as employees?

The answer lies in what I might call “golden handcuffs.” If you meet a capable physician-employee’s financial expectations, there may be less incentive to go elsewhere. Make a permanent associate’s salary generous, though obviously less than that earned by the partners.

Consider a special incentive program to help instill a sense of partnership without the economic risks or management burdens assumed by partners. Provide such long-term associates, or members, with incentives in their own profit centers. This allows still more potential profit for the actual partners.

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.