Private practice partnerships?

[NICUfello]

As a new attending, have some questions for the most experienced.

I joined a small private practice (5 physicians), on a 2 year contract. At the end of the contract, I have option to renew contract for 3 years.

However at the end of total of 4 year of service (2 years current contract, and two year next contract), practice has provisions for "partnership."

My question is (obviously I still need to see if I like this practice and where I want to be long term), are most partnerships "buy in?" If so, I would have to keep separate cash away for impending purchase when the time comes.

Mostly I am curious how does one becomes a partner? I know in large law firms, 6-7 years later, you "make" partner, not necessarily a buyin.

Appreciate the help. Given PEDIATRIX is buying up everything everywhere, I am not sure in 4 years I will have the opportunity for partnership, but I would like to know the how/and what


Thank you

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[TexasPhysician]

Many practices will have a buy-in but probably not all. Every practice is different. If the practice doesn't clearly lay out the requirements for you, consider it a big red flag.

 

[NICUfello]

Many practices will have a buy-in but probably not all. Every practice is different. If the practice doesn't clearly lay out the requirements for you, consider it a big red flag.

Thank you. THey HAVEN'T yet laid out the specifics for me, since I am on my initial 2 year contract.

Then again, the founding partner, is the HR, the Accountant, etc of the whole practice...

Practice is 31 years old.

I guess one of my concerns was, say there is a $200K buy in. I would need some idea to save that money, unless they let me pay as I go at that time for a buy in...

Just trying to be prepared.

Thank you as always, for the response.

 

[TexasPhysician]

Why haven't they laid out the specifics? You know that after 4 years there are provisions for partnership. If so, I'd have asked to see it all before taking the initial job. Being a partner is not always a good thing. You want to know how new partners are decided, buy-in, profits, what's included, what happens if things go bad, etc.

Say the buy-in at your current job is $2 million and earns you an extra $100k/year. Would you still extend your contract there or look for better partnership options elsewhere? Some places put the buy-in very high due to not really wanting new partners. So high that it isn't worth it.

If you are happy there regardless, then it doesn't matter much. If you are looking for a good partnership opportunity, I'd want to know what I'm aiming for. You are testing them out for 4 years just as they are testing you.

 

[NICUfello]

^^
Thank you.

I had 2 academic offers (where I did fellowship, and one elsewhere)-I turned both down, didn't want to deal with academic politics.

I had 2 private practice offers. One in a very high cost of living area (SF), I didn't take. Another one in AZ (which I was going to take).

Then a private practice slot opened up literally next to my current house, which I ended up taking. I didn't have to move spouse job, move kids, so it ended up working out. THus I signed the 2 year contract, whereas, everywhere else there was a 3 year contract.

They had told me, they will discuss the partnership tract after my 2 years is up.

Maybe I am naive..first job, and didn't make the right decision?

Salary wise, its very competitive (exactly same $) as other offers. BOnus structure is good. All in all I am very happy so far.