Post-transaction impact of selling out to a hospital

We all hear, read, and talk about physicians selling their medical practices to hospitals. And we all hear, read, and talk about the pros and cons of doing so. I recently  had a client sell out to a hospital and thought you might be interested in this little snippet from an email I received recently:

If I decided to leave hospital employment and were to open another practice, which my contract with them allows me to do………………………… They are actually running my practice into the ground. And making hiring firing decisions without consulting me.  They have fired my nurse I brought over twice now, who was the only person with orthopedic experience. And has worked with  me 3 years. They are hiring all employees from a temp agency. The front desk person had no medical office experience.   She was a flavor delivery driver for the last 2 years. One of the MA’s was already let go from another same hospital-owned office for lack of experience and no learning / extremely slow abilities.  Sorry for venting.

Moral of the story – Yes you do lose all control when you sell out to a hospital or any other third party.

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.