6 Tips for Selling Your Practice to a Corporation
5. Do not complete the sale unless the contract specifies—with the terms defined reasonably precisely—what you are to receive, long-term as well as short-term. If a long-term benefit cannot be defined, then define how it will be defined in the future. If the conditions under which the company can decide not to provide that benefit or that compensation; and when exactly you will receive each specific benefit or facet of compensation.
6. Have your lawyer investigate the other times the company has been sued by physicians. Remember that although lawsuits against such companies often end in settlement, which, however small the settlement amount, inevitably includes a nondisclosure clause prohibiting public disclosure of the settlement amount. This prohibits the physician from discussing the corporation or the facts pertinent to the lawsuit, the fact that the lawsuit was filed, and the specific allegations contained in the complaint. However, there are public databases that would reveal that these lawsuits were filed.
For a variety of reasons, more and more physicians these days are considering selling their private practices to a medical-care corporation and becoming an employee of the corporation. This could be a sound business strategy, but there are critical presale cautionary steps that the physician should take in order to ensure against certain pitfalls and exponentially increase the likelihood that the final agreement provides the mutually beneficial terms that the physician thinks it provides.
Todd Neely is President of NanoImproved and has over thirty years of business experience as a CEO, management consultant and entrepreneur. He has a deep understanding of business strategy, supply chain, process reengineering and financial management. He can be reached at Todd.Neely@yleen.com.
Marybeth Regan, PhD, is an expert in disease and care management. She has written numerous articles on strategies for care and disease management. She may be reached at Drmarybethregan@aol.com.
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