Is It Time to Sell Your Medical Practice?

The LOUNGE - A Newsletter for Savvy Physicians

We scour the net, selecting the most pertinent articles for the busy doc so you don’t have to! Here’s what kept our focus this week…

• Starting the selling process early allows time for proper financial preparation, boosting profitability and avoiding surprises.

• CEO departures in the U.S. jumped 15% in 2024, totaling 1,450 between January and August.

• Researchers analyzed over 1,400 data points from 50 founder CEOs and 58 non-founder CEOs in private equity–backed companies.

• Real estate tends to perform well compared to other assets like stocks and bonds, offering long-term appreciation.

• In a world where life-and-death decisions are increasingly politicized, who stands up for ethical medical practices?

• Traditional jobs are being replaced by automation, leaving limited options for employment.

LOUNGE TALK

Selling a medical practice involves many intricate steps, and time is one of the biggest factors to consider. Starting early helps avoid financial surprises and boosts profitability. The value of your practice hinges on thorough financial preparation, including reviewing profit and loss statements and determining if you should sell as a stock or asset. Employee transitions and legal intricacies, such as contracts and confidentiality, play a major role in smoothing the sale process. Consulting with a wealth management team can optimize tax strategies and ensure post-sale financial health. Ultimately, preparing well in advance allows you to set terms that reflect your career and financial goals.

As CEO exits surge, a growing number of companies are rehiring veteran executives to restore stability and reassure shareholders. CVS Health, Nike, and Boeing have all turned to experienced leaders this year, with CVS naming David Joyner its new CEO after activist investor pressure. Boomerang CEOs, while comforting in times of uncertainty, have shown mixed results. While success stories like Steve Jobs and Howard Schultz stand out, many returning CEOs struggle to adapt to modern challenges. Research shows that their second stints often underperform compared to their first. With leadership changes on the rise, the effectiveness of these seasoned executives remains a gamble in today’s evolving business environment.

Recent research highlights the unique qualities that set founder CEOs apart from their non-founder counterparts, reigniting the discussion sparked by Paul Graham's essay on “Founder Mode.” Analyzing over 1,400 data points and conducting interviews, researchers at ghSMART found that founder CEOs display extreme strengths and weaknesses compared to non-founders. These "spikier" traits make founders excel in certain areas but also amplify their vulnerabilities. While founders are often more visionary and passionate, they tend to struggle with operational tasks and team dynamics. Understanding these differences can help investors and companies navigate leadership decisions more effectively, especially in private equity–backed firms.

Real estate continues to be America’s favorite investment for two key reasons: it builds wealth and provides significant tax advantages. Unlike stocks or bonds, real estate is tangible, giving investors a sense of security and pride. The ability to leverage property with minimal down payment means even small price increases can lead to substantial returns. Furthermore, real estate offers the potential for consistent cash flow, particularly from rental properties, while short-term rentals can provide even greater returns. The tax benefits are considerable as well, with deductions for mortgage interest, property management, and depreciation reducing taxable income. This unique combination of wealth building, cash flow, and tax efficiency makes real estate an attractive long-term investment for high-income earners.

In the past decade, over a million vulnerable patients have died, highlighting the complex interplay between medical ethics and government policy. Dr. L. Joseph Parker emphasizes the importance of conscience rights for healthcare professionals, citing Arkansas laws that protect physicians who refuse to engage in treatments against their deeply held beliefs. He argues that as medical practices evolve, there is a pressing need to safeguard the right of conscience, particularly as societal pressures mount to conform. The conversation about euthanasia and medically assisted suicide illustrates the deep divisions among medical practitioners and the public. The author references key historical milestones, such as Oregon’s Death with Dignity Act, and the legal battles that followed, showcasing the tension between personal beliefs and federal law. The Supreme Court's clarification on what constitutes legitimate medical practice reinforces the need for clear regulations in the healthcare sector. Overall, the piece calls for a reevaluation of policies to ensure that healthcare providers can practice in accordance with their ethical convictions without facing retribution.

Welcome to the future, where the job landscape is drastically altered by AI. As automation takes over, traditional employment options dwindle, leaving only a few paths: taking on frontline jobs, supervising AI, or relying on a universal basic income. Yet, amidst this uncertainty, a new avenue emerges—becoming a Digital Solopreneur. This role isn’t about mundane tasks but harnessing human creativity for content creation, where your unique ideas will stand out amidst a sea of AI-generated material. With increased free time and a surge in content consumption, those who can innovate and resonate with audiences will thrive. The key to success lies in building a loyal audience and leveraging digital tools to express your authenticity. In a world where trust and human connection are paramount, those who adapt will shape the creator economy, projected to grow from $250 billion to $500 billion by 2030.

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QUICK BITES

• 4 ways to incorporate your brand identity into your holiday gifts.

• 3 ways to manage moments of work-induced anxiety.

• Physician gaslighting looks like this.

• Tips for going into business with friends.

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