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PHPrivate Equity Buyouts and Physician Contracts!
If you are joining a private practice with the goal of becoming an owner, you are probably giving up a lot of income in those first few years. Many doctors sacrifice over $300K compared to hospital salaries during the first couple years, hoping to buy in later and out-earn that deficit.
But what if the practice sells to private equity before you get that chance? Most contracts say ownership can change without affecting your deal, which leaves you with no recourse and potential wasted sacrifice. That is why you might consider negotiating for something like the following:
1.If the ownership changes while you are still in your pre-ownership track, your employer cannot terminate you without cause.
2.You should also have the option to buy in and participate in the sale.
3.If you do not want to stay, you should be able to leave quickly with no repayment obligations, employer-paid malpractice tail, and no noncompete or nonsolicit holding you back.
Not every practice will agree, but negotiating for these protections may make sense.
We HIGHLY recommend you don’t negotiate these deals on your own. The risks are too high. Get a lawyer who knows how to spot the traps in these contracts and offer thoughtful solutions based on ample experience. It can save you a lot of money and stress.
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