Partnership percentage

[agolden1]

Question for those on the private practice side.

There are a lot of threads on people describing that they want partnership, but somewhat fewer describing what is common (more or less) after you get there.

I had assumed (incorrectly) that after being made partner you would just go 50/50 with whoever you were going into business with. Or if there were four partners in a group, they all were in 25%.

Now I'm seeing the "super partner" side of things where a partnership track is offered, but you can only buy up to x% of shares where a senior person retains the majority of shares in order to serve as head honcho of the group.

For those who have brought associates on or became partners in a group (particularly pain specific groups rather than larger ortho/multispecialty groups), how did your partnership pathway evolve? Did you start as a junior partner with a small percentage and eventually buy in to a larger amount over years?

Can also move this to private thread if more appropriate there.

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[BobBarker]

I’m only aware of one group locally that divides everything 50/50. If one partner is a little more productive than the other they don’t make issue of it. This works great if the partners are similarly productive. Works terrible if one gets hit by a bus.

The more common method for a true partnership is the doctors own 50/50 of the business. So if they sold it they would each get 50%. However income is distributed to each doctor individually based on their charges minus personal overhead. If Dr A wants and extra MA and a scribe he would
pay that out if his collections.

 

[agolden1]

I’m only aware of one group locally that divides everything 50/50. If one partner is a little more productive than the other they don’t make issue of it. This works great if the partners are similarly productive. Works terrible if one gets hit by a bus.

The more common method for a true partnership is the doctors own 50/50 of the business. So if they sold it they would each get 50%. However income is distributed to each doctor individually based on their charges minus personal overhead. If Dr A wants and extra MA and a scribe he would
pay that out if his collections.

This makes sense and again, was more what I had expected.

It seems there are a number of other partnership strategies where someone is a "partner" but only owns say 10-20% of the business while a senior partner holds onto majority of shares... potentially for years.

Again, just trying to get a sense as to if this is a more common scenario that other people have been in and people signing jobs are encountering.

 

[RoloTomassi]

There's financial partnership and voting rights. Usually hand in hand but sometimes only financial partnership is offered or offered first. Compensation is calculated using various formulas, including but not limited to the above. Voting rights are usually 1 vote a piece regardless of percentage of financial ownership. How much you can buy into, the price, the buyout prices, and a million other important details should be spelled out in the operating agreement/shareholder agreement, by-laws, and shareholder physician employee agreement, so if you need want to see the structure you need to get a hold of these and best to have attorney review with you.

 

[drusso]

Question for those on the private practice side.

There are a lot of threads on people describing that they want partnership, but somewhat fewer describing what is common (more or less) after you get there.

I had assumed (incorrectly) that after being made partner you would just go 50/50 with whoever you were going into business with. Or if there were four partners in a group, they all were in 25%.

Now I'm seeing the "super partner" side of things where a partnership track is offered, but you can only buy up to x% of shares where a senior person retains the majority of shares in order to serve as head honcho of the group.

For those who have brought associates on or became partners in a group (particularly pain specific groups rather than larger ortho/multispecialty groups), how did your partnership pathway evolve? Did you start as a junior partner with a small percentage and eventually buy in to a larger amount over years?

Can also move this to private thread if more appropriate there.

Depends on what your goals are. Some groups elect or appoint a "managing partner" who handles the day-to-day f*ckery of running things. These partners usually have more power as they need to actually bust balls and make thing happen.

 

[TIVAndy]

to be honest, if you didn't start a practice together from scratch, most likely no one is going to hand you off equal share of the practice.
financial partnership makes most sense with buy in to ASC if practice has one. more percentage the better but it's hard to quantify buy ins and do valuations on these things. that's why i really rarely see PP partnerships hold through

 

[drusso]

to be honest, if you didn't start a practice together from scratch, most likely no one is going to hand you off equal share of the practice.
financial partnership makes most sense with buy in to ASC if practice has one. more percentage the better but it's hard to quantify buy ins and do valuations on these things. that's why i really rarely see PP partnerships hold through

Make yourself indispensable and they will beg to keep you.

 

[Ferrismonk]

There are a bunch of different setups. The private anesthesia group that ran my residency was set up with a complex structure that included "senior partners", "junior partners", and a point system that dictated compensation. I agree with getting a lawyer to clarify before you buy.

My current practice everyone is an equal partner and all get an equal vote and equal share of the profit pie. Profit pie is determined after everyone is paid for the days they work at a daily rate determined by the partners.

 

[agolden1]

Depends on what your goals are. Some groups elect or appoint a "managing partner" who handles the day-to-day f*ckery of running things. These partners usually have more power as they need to actually bust balls and make thing happen.

Goals are to eventually (after proving myself) be paid for the work I do and not have someone else constantly profiting off of that.

However I do see what your describing and the utility of having someone who would rather take on a leading role in doing that over clinical work.

 

[Iamnew2]

Goals are to eventually (after proving myself) be paid for the work I do and not have someone else constantly profiting off of that.

However I do see what your describing and the utility of having someone who would rather take on a leading role in doing that over clinical work.

How much do partners make these days in pain? Seems like the hassle of running a practice is not worth the squeeze? Maybe I’m not up to date on how much partner pain docs make these days but w constant cuts ro reimbursements, expensive equipment, staffing, salaries, regulations - is it really worth it?

 

[drusso]

How much do partners make these days in pain? Seems like the hassle of running a practice is not worth the squeeze? Maybe I’m not up to date on how much partner pain docs make these days but w constant cuts ro reimbursements, expensive equipment, staffing, salaries, regulations - is it really worth it?

Love what you do, you never work a day in your life.

 

[TIVAndy]

How much do partners make these days in pain? Seems like the hassle of running a practice is not worth the squeeze? Maybe I’m not up to date on how much partner pain docs make these days but w constant cuts ro reimbursements, expensive equipment, staffing, salaries, regulations - is it really worth it?

Sky is the ceiling. Plenty of people do very well

 

[nvrsumr]

I would say total comp around million for most successful doc owners. If in bfe with multiple mlps and own ur asc maybe 2 million

 

[BobBarker]

I think $3M is possible. UDS/DME/ASC/PI
in a state where midlevels can write controlled substances.