Issue link: https://viewer.e-digitaledition.com/i/945876
The Mine-strewn Path to Selling a Practice The Power of the Ordinary K E E P I N G B U S I N E S S FLOW ING smoothly at your practice doesn't always involve grap - pling with esoteric details o f f i n a n c e . T i m e - t e s t e d approaches are often perfectly serviceable solutions to issues that may otherwise drive you to distraction. North Carolina-based First Bank offers these suggestions: + Consider a line of credit. D e l a y s i n p a y m e n t f ro m insurers or government pro - grams can cripple a practice. A line of credit that shrinks or grows as bills are paid in a more (or less) timely manner can help your practice keep up with its own bills. + Look into owner-occupied real estate. Having to pull up stakes because of a landlord's unreasonable requirements can cost your practice patients and, therefore, revenue. + Unless you enjoy the company of the staff at your bank, you should have direct deposit for employees as well as the ability to remotely deposit collected checks directly into your own account. You'll save time and expense, and you can make deposits later in the day. ■ — Steve Barrett Keeping Leases on the Level H E A LT H C A R E O R G A N I Z AT I O N S C O N S I D E R I N G leasing space to providers who may refer patients to those organizations should keep one eye on the Anti-kickback Statute, which forbids certain practices that may spur referrals. Here are just a few of the provisions, as spelled out by global law firm Holland & Knight: + All premises that will be covered for the term of the lease must be spelled out explicitly. + If a lease is only for certain time intervals within the overall term, the schedule of those intervals, their duration and the rent for the intervals must be defined exactly. + The aggregate rental charge has to be determined in advance, "consistent with fair market value in arms-length transactions." + Rental charges may not take into account the value or volume of referrals that may be fully or partially covered by federal programs such as Medicare or Medicaid. ■ — Steve Barrett S E L L I N G A M E D I C A L P R A C T I C E can induce fewer headaches if owners take some practical steps throughout the process, according to Sacramento, California-based Rogerson Business Services. The following tips can help physicians increase profits and reduce liabilities, Andrew Rogerson, a Licensed Broker with the California Bureau of Real Estate, writes on the company's website: + Get real: Everybody wants top dollar, but meeting with an experienced, qualified valuation expert before putting the practice up for sale will provide clear perspective on pricing. + Stick to the facts: Seller representations in draft purchase agreements may seem like obligatory filler, but no warranty or representation should appear in the document if the seller cannot substantiate it. + Know your buyer: Ensure the buyer provides warranties on issues such as being appropriately licensed and in good standing with the state medical board. This may aid the seller in the event of a later malpractice suit against the buyer. ■ — Steve Barrett 1 9 M D N E W S . C O M /// M D N E W S C L E V E L A N D /A K R O N / C A N T O N ■ J A N U A R Y/ F E B R U A R Y 2 018