Many Physicians make crucial Practice Buy-In Mistakes that cost them a lot of time and money. For this reason considering a medical practice buy-in, it is important to do your homework and know what you are getting into.

Making the decision to buy-in to a medical practice is a long term decision that will affect both finances and the lifestyle of any doctor.

Here are three important Practice Buy-In Mistakes to avoid:

1) Failing to Consult with Professionals

A common medical practice buy-in mistake is not hiring professionals advisors, such as attorneys and accountants.

Many physicians who have worked for a practice for a number of years may not believe that they need to have professional advice, as they already know the business of medicine.

There is also a fear that it may be insulting to the doctors whom they are buying-in with to bring in professionals to assess the practice. However it does provide a neutral and objective view of the practice, along with professional experience.

2) Not negotiating terms of the buy-in before starting employment

Physicians joining a practice have a chance to negotiate the terms of the buy-in process at the very beginning of their employment.

This is the ideal time to negotiate because he or she has the most leverage at this stage. The owner physician sees a need to expand and wants the best possible partner. Also, the physician buying in at this stage has not made lifestyle changes, so they are free to accept another offer should they want to.

For this reason, this is the best time to consider a medical practice buy-in contract. The earlier this is done, the better it is for all involved parties.

3) Failing to Understand the Non-Compete Clause

In many states of the US, non-compete clauses (commonly referred to as restrictive covenants) are enforceable if they are found to be reasonable. A non-compete clause means a doctor cannot practice within a certain proximity or time period after leaving the practice.

Consider the repercussions of a non-compete clause before buying in. If a physician is bound to respect and abide by it, it may mean moving cities (or states in some cases) if they wish to practice.

If a doctor does decide to cancel the buy-in agreement, it might be advisable to request being able to ‘buy out’ of the restrictive covenant by waiving some or all of the money they are entitled to.

These are three important considerations for any physician considering a medical practice buy-in to make. Failing to avoid these practice buy-in mistakes can cause a lot of frustration and inconvenience for both the new doctor joining and the established doctor.