Retiring without closing your practice
For doctors
Many doctors put off the decision until their last year of practice, when the options narrow. Those who start planning a few years earlier can choose how, when and to whom they hand over their practice.
The four possible routes
- Close. End of activity, sale of assets, patients and staff to relocate. Goodwill is lost. Suits owners with no successor and little time.
- Sell to a colleague. Find a successor with the skills and funds to buy. Payment is often in instalments. Suits owners who already have an interested, trusted colleague.
- Bring in a partner. Gradual transfer of shares and patients over a few years. Suits owners who want to scale down step by step.
- Join a group or network. The group takes over management; timing and the doctor’s role depend on the agreement. Suits owners looking for continuity for patients and staff.
When to start?
Three to five years before the target date is a good horizon. It takes time to find a successor, hand over patients, fix what weighs on value and complete administrative steps such as transferring the healthcare authorisation.
Questions to ask yourself
- Do I want to stop completely or keep working at a lighter pace?
- Who will care for my patients, and how will I tell them?
- What happens to my staff?
- How do I want to be paid, and over what period?
- How will stopping affect my pension? (check with ENPAM)
Think about continuity, not just price
For many doctors, it matters as much as the price that the practice keeps caring well for long-standing patients and that the team stays together. It is worth putting this in writing in the agreement, along with timing and roles during the transition.
Planning succession with Vitaura
This article is for information only and is not tax, legal or pension advice.
