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Why a Medical Practice is Both a Financial and Non-Financial Asset
By Dr. Gary L. Bode; MSA, CPA
A medical practice is a valuable asset in two respects. First, it provides the work environment that generates your personal income. It is a current financial asset.
Second, it has inherent sales value that can be part of an exit (retirement) or transfer strategy. It is a potential future financial asset. Some of this inherent value lies in the current market value of medical equipment, minus any money owed.
The other aspect of inherent value is goodwill, or the worth of the practice as on going concern that allows you to sell it to another practitioner. But, there are other non-financial rewards, as well.
Non-Economic Rewards of an Efficient Medical Practice
Some of the rewards of a well-run practice that transcend purely financial considerations include:
1) A better, more consistent clinical result
2) Improved patient perception which increases referrals and decreases liability
3) Less employee turnover
4) Less stress
5) More free time for the practitioner.
Now, can you think of any other non-financial rewards? But, in the era of healthcare reform, are they increasing or decreasing?
Conclusion
And so, your thoughts and comments on this Medical Executive-Post are appreciated.
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com or Bio: www.stpub.com/pubs/authors/MARCINKO.htm
Our Other Print Books and Related Information Sources:
Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759
Physician Financial Planning: http://www.jbpub.com/catalog/0763745790
Medical Risk Management: http://www.jbpub.com/catalog/9780763733421
Healthcare Organizations: www.HealthcareFinancials.com
Health Administration Terms: www.HealthDictionarySeries.com
Physician Advisors: www.CertifiedMedicalPlanner.com
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