Planning for physician succession: no longer a luxury

Many physicians are opting for early retirement rather than contend with the increasing loss of control within the changing health care environment. Unfortunately, these retirements are often abrupt--the physician is unaware until it's too late that quick transitions to new successors can yield disastrous financial results. Physicians sometimes overestimate the intrinsic value of their practices. Sometimes they are emotionally unprepared for the change, and bail out at the last minute. In either case, unplanned successions often result in a serious loss of practice value for the physician and a loss of market share for affiliated hospitals and groups. Physicians and administrators must work together to prepare a succession plan allowing adequate time to phase in the new successor. This helps maintain practice value, ensuring there are no unpleasant surprises when the physician retires. In this article, the author also provides a checklist containing succession plan guidelines.