How to identify the best managing partner for your practice

Issue: March/April 2010

ByJohn B. Pinto

Every practice setting is unique, but virtually all practices with two or more owners should select a managing partner. As general guidance, the responsibilities of your lead partner should conform to the priorities and problems that your practice is expected to face in the near and intermediate future. If your practice’s main challenge is financial, you need a leader with economic skills and interests. If the biggest opportunities lie in growth through merger and acquisition, your managing partner should be good at building relationships and negotiating terms. As a starting point, here is a stripped-down, generic position description that you can use to build something more germane to your setting.

Core skills and resources inventory

Up to 8 hours per week for internal/external meetings and data analysis.
An ethical grounding that consistently makes quality patient care the top priority.
Financial acumen sufficient to evaluate monthly reports and to monitor progress toward agreed profit targets.
The ability and widely held credibility to actively mentor fellow doctors and to not avoid uncomfortable situations or conflicts.
The ability to communicate directly and clearly, in writing and verbally.
Sufficient discipline to stick to board-agreed directives, and not “freelance” policy.

Core duties

Work with the practice’s administrator to transform board-mandated mission, goals and policies into daily operations.
Provide oversight with the administrator and external accounting resources in the preparation of monthly financial statements and volume performance reports; participate in the preparation of a forecast of practice performance; co-responsible for assuring that an appropriate cost-benefit analysis is conducted for all new projects, policies, capital equipment purchases and other initiatives.
Work with the administrator to coach each provider and enhance their total performance; intervene briskly if volumes or revenue lag.
Sit on the practice management committee composed of selected senior staff, which manages day-to-day operations; chair the practice’s board of directors.
Maintain ongoing, senior-level contact with institutions, friendly competitors, the practice’s sources of patients and with payers in the region.
Work with the administrator to prepare and at least annually revise the practice’s strategic plan; lead the board approval process for each subsequent edition.
Be involved in provider and senior staff recruitment activities.
Use internal providers and outside advisory resources to conduct risk management, utilization and quality assurance reviews.
Work to resolve provider-to-provider conflicts, including scope-of-practice, care pathway and patient assignment issues.

Compensation

Most often characterized as an honorarium, and less than the actual hourly worth of the physician-executive.
For small practices of five or fewer providers, $1,500 to $2,500 per month is typical. For larger practices and more time commitment, the honorarium may range to $5,000 and higher.