Our group has been courted by a VC (targeted is the correct word IMO), but they are now throwing silly money at us- unheard of multiples. This of course has gotten our attention and we've decided to test the waters and meet with their rivals to hear what they offer.

The one good thing we have in our favor is that our group would be the linchpin in our market, which makes us a very desirable catch.

I've been in the business nearly 25 years, been on hospital boards, group exec boards, etc and know my position. But as part of the governing board for our group I need to gather as much unbiased information as I can from others who've gone through this, not simply the provided "references" connected to either of those VCs.

I'd appreciate hearing from anyone out their regarding their experience. Please PM me for my phone number.

My Son is an attorney and in the medical field. He highly recommended finding an attorney or group that specializes in your type case. If you will be walking away, it will be a lot easier than being an employee.

Don’t get me wrong, we have an attorney, accountant. Frankly I am looking for other people’s experiences and personal (not necessarily business) thoughts.

Take the money. Suckers aren't born every minute, unlike Barnum's philosophy.

I haven’t been in the exact situation but 25 years ago Health South made an outrageous offer for an outpatient surgery center that I owned a small part of. The money was all up front with no future liability. The general partners and all us limited partners took the money and ran. 10 years later Health South was bankrupt and liquidated and we all had a nice chunk of change.

quote:

Originally posted by jdollar:
I haven’t been in the exact situation but 25 years ago Health South made an outrageous offer for an outpatient surgery center that I owned a small part of. The money was all up front with no future liability. The general partners and all us limited partners took the money and ran. 10 years later Health South was bankrupt and liquidated and we all had a nice chunk of change.

Richard Scrushy was a one of a kind fraud artist. He will be made into a oscar movie - might take 50 years.

But I have seen a lot of frauds. Never seen a Richard Scrushy.

I have zero experience in non public medical practice but a strong view healthcare will be nationalized in my lifetime (I am 46).

Sell and move on.

Mike

These deals are great for the "nearing retirement" members but suck for the junior guys. Being a private surgeon I have great contempt for the manifest destiny plan of hospitals currently. My only hope is that it fails as quality of care goes down the toilet with physician's morale after they sell their autonomy, if not their soul, to hospitals. I would last less than a week as a hospital employee having some administrator telling me how to be a doctor. I should add that my wife is a hospital-employed surgeon and essentially hates it other than actually operating and caring for patients.

That said, I understand that it can be near impossible to survive as a private doc dependent on a referral base that have all become hospital employees.

If the tax reform goes through we private docs will be even happier to be so.

Did I say I'd last a week earlier? I lied....I meant an hour.

quote:

Originally posted by Norton:
These deals are great for the "nearing retirement" members but suck for the junior guys. Being a private surgeon I have great contempt for the manifest destiny plan of hospitals currently. My only hope is that it fails as quality of care goes down the toilet with physician's morale after they sell their autonomy, if not their soul, to hospitals. I would last less than a week as a hospital employee having some administrator telling me how to be a doctor. I should add that my wife is a hospital-employed surgeon and essentially hates it other than actually operating and caring for patients.

That said, I understand that it can be near impossible to survive as a private doc dependent on a referral base that have all become hospital employees.

If the tax reform goes through we private docs will be even happier to be so.

Did I say I'd last a week earlier? I lied....I meant an hour.

I do agree with you.

Please keep us updated on what you and your group see as the pros and cons of the deal FMC.

FWIW, and not quite the same kind of deal, I have a friend whose daughter is doctor. He is a good ole country boy who worked hard all his life to put his daughter thru medical school. Fairly unusual, when she went out on her own, opened her own clinics, she cut him a large check to repay him for her schooling. Not too long ago, she was offered several million dollars for her practice, while being allowed to stay on and keeping a good percentage of her billing. Asked her Daddy what she should do, and he said, don't hesitate, TAKE THE MONEY. She did, and is very happy with result.
Great looking, too.

TAKE THE MONEY......I agree as long as you're not fucking a buncha people you pretended to care about. I suppose if money is more important than anything else to you it doesn't matter either way.

It's one thing if you truly need the money but at some point docs need to stand up to this horseshit. If you think it's all roses working for someone that buys you out (after the short honeymoon) think again.

I'm sure there are and can be exceptions to this, but after nearly a year, my buddy's daughter is quite happy with her deal and her practice.

I'm gutted to be directed by outside forces into making this decision. Unfortunately this is the direction things are going. We knew consolidation was coming and were taking baby steps merging to get bigger. Doing nothing is not an option and frankly the path to failure. 1. Big hospitals going to put out regional RFPs. 2. We'd need millions to invest in IT not to be competitive, not to continue to be a big player in the market, but rather to take us to the next level- the elite group to go to.

It is easier to get that from the national groups and get those RFPs due to associating with "preferred" (national) vendors who have monthly meetings at corporate (cocksuckers).

And yes I do believe within 5-7 years salaries will get down to what is offered........regardless we'd become employees. Yes getting to the elite level we want, but still someone's lackeys.......

I'm gutted because of all of the blood, sweat and tears of those 22 years will be rendered meaningless. Yes, I can hold my head up high because of all I have accomplished, but that is a selfish value.

Why I ask is bacause all the time I've spent away from my family, and my kids- all the events I've had to miss, etc will in essence have been in vain. Millions in the bank can never overcome regret.

I'm terrified of regret.

My step daughter is an MD. After a full grant from Smith + then Med. school,upon graduation she was approached by big pharm. + offered a 7 million sign on bonus. She turned them down as she was more concerned in the practice than the money. She's in Houston but any off time she has is spent in Africa or Haiti dealing with HIV cases;and you know that does'nt pay anything.

quote:

Why I ask is bacause all the time I've spent away from my family, and my kids- all the events I've had to miss, etc will in essence have been in vain. Millions in the bank can never overcome regret.

I'm terrified of regret.

Sounds like you're already shot through with regret due to choices you made for business reasons. Selling out is just a symptom and could be considered a reward for those earlier choices IMO.

I would offer that a lucrative sellout doesn't mean the end of practice aa you knew it altogether if you maintain your commitment to your patients and the contract you agree to ensures it. Also, it isn't out of the realm of possibilities that this model fails while you still have, and your junior partners have, some career left. That is the best case scenario if you ask me. Take the money AND open another successful private practice.

We're hiring a broker to pit at least 2 parties against each other.

If I were 5 years older I'd retire. The good thing is we are empty nesters, my wife is a country gal, not a socialite so we can relocate. That'd be easy as we live in the country- all she needs is acreage and a barn and she'd be more than happy.

Unlike the others in my group I have options and have 4 rural hospital carve outs from the non compete, which generate a significant income, but I'd be on my own again and have to deal with coverage, etc. Did that 15 years ago for several years before I burned out and brought my contracts to the big group.

I guess I just didn't want to finally admit I'm not 30 any more and it's getting close to retirement.