Private Practice partner buy-in

[synqo]

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I'm up for partner with my group this summer. They want me to pay 200k buy-in. Its a small group, only 3 partners, and we partly own some equipment with the hospital. Not sure how to know if this is a fair buy-in or not. Wondering if anyone has advice.

 

[deleted941485]

I'm up for partner with my group this summer. They want me to pay 200k buy-in. Its a small group, only 3 partners, and we partly own some equipment with the hospital. Not sure how to know if this is a fair buy-in or not. Wondering if anyone has advice.

I would see if there is just a salary option. These days partnerships have more downside than upside. I have the same clause in my contract I’m up for partner in 3 years and effectively a buy in period. So much has changed since I came out of training and I expect that to continue into the future that the partnership buy in would effectively be a waste of time and money.

My suggestion find a new employer if you aren’t tied down

 

[Radology]

Ask them what the payment would be if the group gave you a 5-10 year loan at IRS lowest applicable interest rates.

If annual distributions from what you’re buying into is greater than the annual loan payments, it’s a good deal.

Otherwise, you’re just funding your partners bonuses

 

[Dave1980]

I was part of a group that had almost no equipment and only held contracts for local hospitals. They still wanted a buy-in which I always thought was stupid and greedy. The group could lose the contract in the future and you essentially just gave money to the other partners.