Berning & Affiliates

Are You Rich?

It depends, is the answer. Apparently, lots of personal and family aspects as well age and lifestyle all get added in when a person answers whether they consider themselves rich. As you know some people consider themselves rich because they have good health, or have the house mortgage paid off. But, a more definitive answer as it related to money was posted as a result of a small survey by Spectrum Group. It was recently reported in the Wall Street Journal as part of their Money Blog. The writer, Robert Frank, notes that "Having a net worth of $1.4 million will put you in the top 5% of Americans, according to the Federal Reserve." Which is true. Of course many doctors know that in certain areas of the country that $1.4 is just what the house costs!

"Do I Need Professional Help?"

In a consultation this week with a doctor evaluating numerous options for a practice transition strategy he wondered about the following: his investments and their performance, his insurance coverage and whether it was adequate, the documents being prepared (for nearly 2 years) for his estate plan and whether the firm preparing them should take into account his potential practice transfer plans, the marketing and management of the office and how it would be best developed when he brought in an associate or partner. There was more than that which gives you an idea of the number of questions and unmet needs being discussed. All of this discussion was prompted by his wife asking "when are you going to have a plan in place to transition the practice?" And his response to her was, "Do I need professional help to develop the plan?" The answer became obvious the more they talked! If you end up in a similar discussion don't wait -- in this case the doctor and his wife had their discussion 3.5 years earlier and he was just getting around to calling yours truly!

The Best Fit

In a discussion recently with a doctor CEO setting his strategy for a complicated practice succession we reviewed each of the current associates. The doctor commented on the attributes of each younger professional and whether they had met or exceeded his written list of performance expectations. Regarding one of the doctors that had held such promise as the heir apparent for the practice the doctors said, "He is a great associate but given his decision making, more than likely a poor partner." This is was a hard observation to make. We all tend to become invested in people and our goals for them and our organization. But this doctor CEO made the hard call. The younger doctor was great at providing care but took issue with every major initiative, could not seem to connect well with several of the staff and felt he was entitled to an equity position. Given those aspects, and others, the doctor CEO was prepared to keep looking.