A big practice change, such as a transition in ownership, can shake things up with the employees in the practice. Whether it’s bringing in a partner or handing off the practice to a new doctor, practice transitions can initially cause unease but can also have the potential to inspire growth and success.
A good place to start is by integrating the team with the new doctor. This involves the current and new doctors crafting a plan for making the announcement. They also need to review the current HR policies and staff benefits (i.e., compensation, insurance, benefits) in place and determine any changes to make.
It’s natural to have some uncertainty about how to initiate these two steps. With in-depth preparation and proper communication, both the current and new doctors can ensure the team feels confident and optimistic about the next chapter.
Timing the Announcement
Announcing the transition to the team can be a sensitive and pivotal conversation. There could be some team members that have been at the practice for over 20 years, those who are new and all tenures in between. The current owner likely cares about their team, and they may even consider them family, so it’s common for this announcement to bring feelings of anxiety and uncertainty.
One of the first questions that doctors ask is, when is the right time to make the announcement?
Ideally, if the doctor is retiring, they can condition the team well in advance of the actual transition, let them know that they will be retiring sometime in the future, and they will find the right person when the time is appropriate. If an existing associate is transitioning to a partner, this will likely ease any surprises as the team is already familiar with them and likely knows this is coming.
In a walkaway sale where the team may not know who the buyer is, many doctors don’t feel comfortable sharing the news until the deal is nearly finalized, which means they may not share the news until the week of closing. There isn’t a right or wrong answer, but the doctors should judge the timing depending on their situation. NDP recommends waiting, at a minimum, until lending is fully approved and legal documents are signed. With the many moving pieces in the practice sale, waiting for the “dust to settle” before delivering the announcement to the team can help ensure this important task is done correctly.
When considering timing, it’s also important to be mindful of the day of the week. For example, NDP recommends not telling the team on a Friday or before a long break, which can allow time for the staff to speculate and form opinions about their new boss. Instead, time the announcement so that the new owner can come the following day to alleviate any uncertainty and provide clarity for the team.
Crafting and Delivering the Message
This important announcement should not be unscripted, and it’s critical that owners take the time to prepare, write down the key points and even practice it in front of the mirror, a family member or friend. Feeling confident will project a clear and genuine message.
The message should express the doctor’s reasoning and goals for the transition. It should spotlight the positive qualities and skills of the new doctor and illustrate the intention behind bringing in this particular individual. Overall, the message should convey excitement for the future and the continued story of the practice.
Another piece of delivering the announcement is preparing for the questions that the team may ask. Consider the team’s perspective and how they may be feeling as they face this new change.
Think of the non-financial aspects that are important to each team member. Perhaps a team member has a passion for traveling, one individual leaves early once a week to pick up their child, or another team member has an aging mom and needs the flexibility to care for her. Understanding what matters to each team member—and discussing these with the new doctor in advance of the formal announcement —shows that the doctor cares, and it can also help ease any concerns.
Assessing Current HR Policies and Staff Benefits
The other component to integrating the new doctor is the need to assess many operational factors related to the team. Note that this needs to happen well before the formal announcement of the transition so that the new owner can develop a plan, and the doctors know how to answer staff questions. Assessing these factors involves understanding what’s been done in the past and why, the benefits, risks and alternatives of each factor and what the new ownership intends to do moving forward.
Some of the main factors to consider are:
- Compensation: Is the staff overpaid or underpaid? What retirement plans (i.e., 401(k) and defined cash balance plans) are being offered?
- Paid Time Off: What kind of paid time off (i.e., vacation time, sick leave, holidays) does the team receive? How do they accrue paid time off?
- Insurance: For health, disability and any other insurance plans offered, what are the costs and the benefits? Who’s participating in the plans?
- Continuing Education: Is the current doctor and the team passionate about any trainings, educational conferences or dental meetings?
- Team Personnel: What skills do each team member bring to the table? Is there anyone that might not be pulling their own weight or not supporting the practice’s goals and mission?
What if Change is Necessary?
Making changes in the practice is not always easy. Some people can be flexible and are excited for change, and then there are people who don’t want to be part of it. How can the new ownership make adjustments that fit their goals while ensuring the team doesn’t feel as if their world has been turned upside down?
First off, it’s important to not walk in and say, “I’m changing this, this and this.” That can cause people to panic even if the changes are minimal.
Instead, the new ownership should lay out their vision and have a plan for the changes. Include team members in the conversation and ask the team, “How does this work for you?” Owners need to show compassion and understanding and explain the careful consideration behind the changes.
If possible, NDP recommends not making any changes for at least six months if the new doctor plans to remove specific policies or benefits. If the new doctor isn’t in favor of certain policies or think they’re too restrictive, then we suggest keeping them for a period of time or perhaps through the end of the year. That way, the change can be planned for, and the team has the chance to get to know the new owner and vice versa. Understanding the owner’s vision and personality can help the team be more perceptive to the change.
When the new doctor is officially an owner or partner in the practice, the team will be looking for a leader. If the doctor can empower the team and be mindful of their perspective, it makes it easier for the team to follow.
Preparing the team for a practice transition is a significant piece to starting new ownership on the right foot. At NDP, we guide doctors through the buying and selling process, including this piece of communicating with the team. Contact our team of experienced transition advisors to talk through your unique situation.
