Healthcare

The Organization: A six-physician specialty practice affiliated with a Massachusetts community hospital
The Challenge: Owner compensation model, new physician buy-in

The owner-physicians were unhappy with their current compensation model. Developed by the prior accounting firm, which did not have a specialty in Healthcare, it lacked the flexibility to reward higher producing physicians while properly compensating those who wanted to work less than a full schedule. At the same time, the managing partner of the Practice was seeking advice on how to bring younger physicians in as owners.

Edelstein & Company interviewed the partners privately to understand their objectives and concerns. We then developed several possible alternative compensation models based on our extensive experience in working with physician groups. After a series of discussions, the final result was a model that rewarded the higher producers appropriately, but also made sure that those physicians who worked less were appropriately compensated.

We also developed buy-in calculations and worked with the Practice attorneys to update the Practice's operating agreements. This allowed the Practice to successfully bring on new owners in a smooth, tax-efficient transition.