How Will I Pay for a Practice or Surgery Center Buy-In?
By Michael Jerkins, MD, M. Ed., President and Co-founder of Panacea Financial
Buying into a medical practice or surgery center is a big financial step and how you fund it can affect your long-term financial health. The right approach depends on your goals, resources, and the buy-in structure.
Payment Model
First, understand the payment model. With time vesting, ownership is granted after a set period, often partial after one year and full after four. Productivity vesting, on the other hand, grants shares when you hit defined milestones.
Payment Options
When it comes to payment, you have several options:
- Salary deduction is common and tax-efficient, with payments taken gradually from your paycheck.
- Paying with cash upfront can be appealing if you have savings, though this isn’t always feasible early in your career.
- Financing through a lender is often the most accessible choice. Medical lenders understand the unique nature of practice ownership and offer tailored loans.
- Seller financing is sometimes available but less common and more complex, especially for surgical centers.
Preparing Financially
Before pursuing any financing, take a close look at your personal finances. Lenders will evaluate your credit score, debt-to-income ratio, and net worth. A stronger financial profile can secure better loan terms.
If you plan to finance, start lender conversations early. Being financially prepared before a partnership offer puts you in a stronger position to act quickly and confidently.
Ready to explore your options and AMS-member discounts? Speak with a Panacea Financial practice finance specialist today.
Panacea Financial is a division of Primis Bank. Member FDIC.
Michael is the President and Co-founder of Panacea Financial and is also a practicing physician in Little Rock, AR. After earning his BBA in Economics he deferred his medical school acceptance to teach middle school science in the Phoenix, AZ area while also earning his Masters in Education from Arizona State University. He then completed medical school at the University of Tennessee Health Science Center before finishing his residency at University of Cincinnati Medical Center and Cincinnati Children’s Hospital. With a faculty position and board certifications in both Internal Medicine and Pediatrics, Michael is able to treat patients of all ages and teach medical trainees in both inpatient and outpatient settings.