If you've received offers from several practices, it can be a little like comparing apples to oranges. Some may offer a higher, yet short-term, base salary while others reward entrepreneurship by basing compensation, wholly or in part, on productivity. But if long-term investment (and ultimately, a potential nest egg at retirement) are important for you and your family, practices that offer a partnership track can be a good fit.
All physicians must of course consider the financial necessity of their monthly paycheck. But it's important to also be mindful of long-term wealth-building strategies that can position you and your family securely in the future.
Pathway to Partnership
According to an survey conducted by the American Academy of Allergy Asthma & Immunology in 2022, 89% of graduating Fellows desired to become a partner in their next position, yet nearly 20% were not sure if that was even on the table for them. It's important to have partnership conversations early on in negotiating a new position so you know exactly what the opportunity looks like for you. Ask for timelines, models and a sample contract that explains the process in transparent detail. Talk to other physicians in the practice that have reached partner to hear about their experience.
Thinking Beyond the W-2
Though structures vary, the ultimate goal for most partnership tracks is some level of company ownership. This is generally an ownership stake in a profit-generating entity of the practice that is distinct from one's individual compensation. Therefore, there is both short-term (annual) and long-term (retirement or buy out) compensation to consider in any opportunity.
- Ask about share values and projections for growth (or growth over the last few years). What are the parameters for the company to buy back your shares at retirement (or other separation from the company)?
- Find out if the company pays dividends to shareholders.
- Learn more about other financial opportunities that might be available to physicians once they make partner.
Shared Interest, Shared Goals
As a shareholder in a group practice, physicians share the risks and rewards of company ownership. Though you might not work in the same location, as shareholders in the same company you and your colleagues are working toward a common goal - the success of the larger entity. This shared interest can unite a geographically diverse practice in activities that explore innovations in the field, elevate the company brand by delivering expertise on a larger platform, and ultimately contribute to a reputation that fosters growth. In other words, a high tide raises all ships.
This shared commitment to growth not only contributes to your nest egg down the road, patients benefit from the care provided by a growing practice in new communities.
