Retirement can be an exciting but challenging time in the life of a doctor of chiropractic. There are so many considerations and steps that go into retirement; it can seem overwhelming. The ACA Blog reached out to retired and retiring ACA members to ask them about their experiences going through the process.
When (and Why) to Retire
The decision to retire is different for everyone, and it can be influenced by a variety of circumstances. Some, like Jim Rehberger, DC, of Highland, Ill., retire because they want to move closer to family. Others might want more opportunities to travel or explore new hobbies, or they may just feel that the time is right. For Dr. Thomas Ivey of Aberdeen, S.D., health problems caused degeneration in his wrists and hands and forced a gradual transition from full-time patient care to part-time, and then eventually to retirement. “If I hadn’t had these health problems resulting in daily pain and disability, I probably would not have fully retired at that time,” he explained. “I would have continued to work part time and would have taken more time out of the office for vacations and travel.”
John Gentile, DC, of Miami, Fla., also took health issues as a sign to retire, but he had already been considering cutting back for other reasons. “I could see changes coming: Medicare, electronic billing, HIPAA, new coding,” he said. “In the end of 2012, I went to my cardiologist and it turned out I had four blockages in my heart. I said to my wife, ‘This has got to be a sign telling me to slow down.’ So, I put my practice up for sale in 2013.”
When talking to other doctors considering retirement, Dr. Gentile, a former ACA Board chair, says the first thing he tells them is that they’ll know when it’s time. “You have to know that this is what you want,” he said. “I knew after my surgery that I was out.”
Jim Krumpak, DC, of Poland, Ohio, is currently in solo practice and has been considering retirement recently. However, he’s not sure that it’s time for him to retire quite yet. “A couple months ago, I felt like I was stuck in a rut and had lost some of my ability to keep up with the times with regard to running an office,” he said. “I was feeling a little bit frightened. I’m in a happier spot now. I’m still thinking about retirement, but I suppose it’s not time yet.”
Get Started by Asking Questions
According to Dr. Ivey, DC, a former ACA delegate for South Dakota, a lot of questions arose when he began to consider retirement. He shared that some important issues to consider are:
• What am I going to do with my business?
• Will I get the invested equity out of my active practice?
• How will I liquidate my equipment if I close the doors?
• How will I find an interested and qualified buyer for my practice?
• How long will it take to sell?
• Will I want to continue the same lifestyle after I retire, or do I want to downsize?
• How much money will I need every month/year to live the lifestyle I decide to live?
• Do I have enough invested money and other income to cover my anticipated expenses?
• Am I going to live in the same community where I practiced, or do I want to relocate?
• How do I shut down my practice and notify patients of a closure or transition to a new owner?
• Am I going to remain retired, or would I consider working in some capacity?
• What will happen to my staff?
• And what am I going to do with all that extra time?
Talk to Knowledgeable People and Create a Plan
Once you know the time is right, and have answered some questions about your retirement expectations that help you start to get a picture of what that new life will look like, the question arises of how to go about the retirement process. Many retired doctors stress the importance of having a plan. This often starts with consulting doctors who have already retired, as well as professionals who can assist with closing or selling a practice. “Don’t be afraid of paying for good professional advice,” Dr. Ivey said. “Just like plumbing and auto repair, investing, accounting and legal issues are not within the expertise of a chiropractor. You should not attempt to do these on your own if you are a novice or trying to save money. Dr. Rehberger, a former member of the ACA Board of Governors, added, “I used a lawyer, my CPA of many years, and advice from other colleagues that had made or attempted the transition to retirement. I learned from their plans and the mistakes they made.”
Selling Your Practice
As with every aspect of practice, the retirement process varies from doctor to doctor. Some, like Dr. Gentile, choose to sell their practice with the help of a practice broker. “You’re going to have to provide at least two if not three years of records,” he explained. “You’re going to sign a contract, usually for a year, you don’t have to put any money up, and see if they can sell it for you. When they have an offer, it’s yours to decide what you want to do.”
When evaluating offers, it is important to consider what will be best both financially and for your patients. “You want to make sure that doctor is a good fit for the patients you’re leaving,” Dr. Gentile said. “That was important for me — I wanted to make sure that the patients would be happy. The doctor who bought my practice nine years ago, we’ve developed a great friendship — and patients still like him.”
He also shared this advice about selling a practice: “Make sure, no matter who you sell it to, to try to get as much of the money up front as you can. You don’t know when someone’s going to walk away — you want them to have so much skin in the game that they’re not going to walk out.”
Dr. Ivey had a different practice sale experience because he sold to an associate that he had been training and mentoring for a few years before he retired. “Consider hiring an associate with good clinical skills who is compassionate, friendly, likes working with the public and has long-term plans of owning a clinic in your community,” he suggests. “It may cost you some money up front, but a good associate will be paying their own salary within a month or two.”
When Dr. Ivey’s associate expressed interest in buying half of his practice a few years prior to his retirement, Dr. Ivey said his lawyer advised him against it. “He said, ‘Sell it all and work for him, or have him continue to work as an associate.’ Selling any position of your practice was a bad idea. What happens if your relationship with your associate goes south or they do something illegal or unethical and you need to part ways? Who stays and who goes?”
What Now?
One of the biggest questions that comes with the decision to retire is “What now?” As with the rest of the process, every doctor approaches this differently. Dr Ivey’s advice is to make retirement an adventure. “Go for more bike rides and walk, enjoy the outdoors, volunteer your time and talents in some local activity, read more for pleasure, travel, and enjoy the comfort and love of family,” he said. “I briefly missed my practice, but that quickly passed. Retirement can be and is wonderful, and my life is now so much fuller and enjoyable at my age than I ever thought it could be.”
Being retired poses its own challenges, as Dr. Rehberger discovered. “Even though I have learned to become a ‘relaxed retired guy,’ the most difficult part of the process was not understanding how much I would miss the constant connection with people,” he said. “I would highly recommend that this personal part of retirement from a healthcare practice be considered.” This is one of Dr. Krumpak’s main concerns as he considers the possibility of retirement. “It’s my identity, it’s what I’ve done for the past 40 years,” he said of his practice. “Whereas sleeping in and spending the day the way I want to sounds nice, I don’t know if I would be happy with that over the longer term.”
In fact, Dr. Gentile found that he did get restless after a year or so of retirement. His biggest piece of advice to retiring doctors is this: Keep your license. “Once you give it up, it’s almost too hard to get it back,” he said. “If you can practice, keep your license active until you figure out what you want to do. You don’t have to work full time, you can just work a day or two a week, and that keeps you in the field without any pressure and not on an intense basis. Now, I can pretty much dictate how I want to do things.”
Are you retiring or thinking about doing so soon? What concerns or questions are on your mind? Let ACA know so we can consider it when planning future blog posts on this important topic. Send your suggestions to [email protected].
Cassie LaJeunesse is a senior associate in ACA’s Branding and Communications Department.
