Three practical rules for setting a buy-in price

How to Determine the Right Buy-In Price for Your Practice: Key Considerations

Determining the right buy-in price is an inexact science. But applying one consultant’s “acid test” can help you come up with the right price given your individual circumstances. This includes:

1. Net compensation should be higher during the first year of the buy-in than during the partner' last year as an employee

2. The new partner should recoup his or her investment within five years

3. The buy-in price should be less than the cost of starting or buying your own practice

This nugget was adapted from 101 Practical Tips to Enhance Your Practice, from Advisory Publications, a division of HCPro, Inc. To order click here or call our Customer Service Department at 800/650-6787 for more information.

Have questions? I’m here to help.

Categories
Accounting and Tax Services Litigation Support Managed Care Consulting Managed Care Contract Negotiations Medical Practice and Healthcare Entity Valuation Medical Practice Assessment Medical Practice Brokerage Medical Practice Embezzlement Consulting Medical Practice Management Medical Practice Merger Advice Medical Strategic Planning Newsletter Personal Financial Planning Oversight Physician Compensation Models Physician Compliance Physician Financial Management Services Retirement Uncategorized
About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read More >

Reed Tinsley, CPA for Physicians