Broke and miserable
Fam Pract Manag. 1999 Mar;6(3):11.
To the Editor:
I am currently doing locum tenens work in Australia, now broke and miserable after watching my stock in a physician practice management company (PPMC) go south. Due diligence does not guarantee that you'll find a PPMC with a sound financial picture (see “When a Physician Practice Management Company Comes Calling,” June 1998). For the thousands of doctors burned in the stock-market crash of FPA Medical Management, there was no possibility of uncovering poor accounting procedures and misinformation from FPA directors. Every business deal poses risk.
Any group considering amalgamation with a PPMC should negotiate an escape clause that protects against bankruptcy, fraud or failure to deliver on the business plan. The best bet is to sell only for cash, avoid any stock transaction and take out an insurance policy that prevents the individual physicians from losing a practice that was built with blood, sweat and tears.
Copyright © 1999 by the American Academy of Family Physicians.
This content is owned by the AAFP. A person viewing it online may make one printout of the material and may use that printout only for his or her personal, non-commercial reference. This material may not otherwise be downloaded, copied, printed, stored, transmitted or reproduced in any medium, whether now known or later invented, except as authorized in writing by the AAFP. Contact email@example.com for copyright questions and/or permission requests.
Want to use this article elsewhere? Get Permissions