When you acquire or open a new hospital, your initial focus is on growth. However, as a hospital owner, it’s essential to periodically evaluate your goals and determine whether you aim for continued expansion or an exit from ownership. Whichever path you choose, building the right team around yourself is crucial. Let’s explore the key steps to help de-risk your business and support your growth strategy.
- Bookkeeping/Financial Reporting:
To assess and minimize risks effectively, you need timely and accurate financial statements. Ensure you have a reliable system for bookkeeping and financial reporting, allowing you to make informed decisions.
- Operations focused CPA:
A certified public accountant with expertise in operations can optimize tax laws, prepare accurate tax returns, and provide valuable insights to support your business.
- Attorneys:
Engage the right attorney who can anticipate future risks and help you establish a strong legal structure that safeguards your interests.
- Insurance Advisors:
Having a knowledgeable insurance advisor is vital. They will protect your business from unforeseen events or circumstances that may disrupt operations or financial stability.
- Systems, Operations, and Process Advisor:
Invest in building robust systems, efficient operations, and well-defined processes. By documenting each process and ensuring clear communication within your team, you reduce the risk associated with employee turnover and unexpected absences.
- Strategic Business Advisor or Board of Advisors:
Seek input from experienced advisors who can provide valuable feedback on market trends, potential opportunities, and threats that may affect your hospital’s growth. Their insights will help you navigate both micro and macro challenges.
Once you have established a risk-mitigating team, it’s time to focus on the team that will support your growth strategy:
- Lending and Funding Source:
Access to capital is crucial for expansion. Identify lending and funding sources that align with your goals and provide the necessary financial support.
- Marketing and Branding:
Invest in building your hospital’s brand and connecting with your client base. Effective marketing and branding strategies will drive success and client retention.
- Recruitment:
Whether internally or externally, recruit top talent aligned with your mission and vision. Hiring the best and brightest will accelerate your growth and ensure high-quality care for your patients.
- Business Development:
Having team members dedicated to sales and business development is essential for sustained growth. Implement best practices and processes to attract new clients and meet the evolving needs of existing ones.
Building your exit team is good business strategy, this allows you to build rapport and regularly assess the macro level market and your personal goals. Building a team that is led by an exit planner is an excellent business strategy. Here are the key team members associated with a strong exit team.
- Exit Planning Advisor:
Engage an exit planning advisor, preferably one with a CEPA designation, to assess your readiness for succession and explore various exit options. They will help you achieve your desired value on your terms.
- Wealth/Financial Advisor:
Ensure you have a trusted advisor who can provide personalized financial guidance, helping you live your vision for the future and supporting your philanthropic endeavors.
- Transaction CPA:
Work with a tax expert who specializes in transaction planning. They will help you navigate the complexities of tax strategies during the exit process.
- Transaction Attorney:
Collaborate with an attorney experienced in handling agreements and commitments related to succession planning. Their expertise will ensure your post-exit obligations align with your expectations.
- Value/Broker Advisor:
Engage a knowledgeable advisor who can assess the value of your hospital based on market conditions and actively work towards achieving your desired outcome.
Becoming a hospital owner means embracing the role of a team leader. By carefully selecting the right individuals for each role and consistently evaluating their performance, you can fine-tune your team and find fulfillment in both hospital ownership and your eventual exit. Remember, building a strong team is key to success in every phase of your ownership journey.