Remember, a medical practice is a business

Unfortunately, doctors rarely appreciate why their group members serve as partners or what responsibilities they should assume. Compared to commercial business, professional service groups traditionally have one serious problem: The owners/executives are also the hands-on income producers.

In commercial companies, the owners and executives run the business while machines and/or employees produce the goods. Medical practices must begin to recognize the need for owner/executive ability versus producer capabilities. Hence a partner must bring value to the practice as an executive or possess some other skill(s) of special value to the enterprise.

A young doctor may or may not be partnership material even if he or she possesses superb clinical skills and produces revenue. A group definitely needs such workers and should pay them generously, but that effort alone does not necessarily make them good candidates for partnership. Law, accounting, and architectural firms function that way; medical groups should, as well.

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.