People choose to enter retirement for different reasons. They may have reached an age where continuing to practice has become impossible. They may have saved up enough money for retirement to carry and want to spend the next stage of their life relaxing at home or with family. Some people experience lifestyle changes, such as taking care of a loved one full time, that require them to retire.
Whatever your reason for retiring, the process can seem challenging. Many people don’t start planning for retirement until they make the decision to close up their shop. They aren’t certain how to proceed or transition smoothly from an active practitioner to a retired dermatologist. DermCare Management can provide some advice in creating a retirement plan for dermatologists and the next steps for retiring from the field.
How to Retire From Dermatology
May physicians are left wondering what to do when retiring from dermatology. As the practice continues to evolve, there are multiple avenues a practitioner could take to retire. You must take various steps to meet your practice’s needs once you’ve made a successful exit, such as notifying patients of your plans to retire and organizing patient files for easy access.
Understand What Retirement Means
Many people assume that when they retire, they’ll be able to close up shop and leave work behind. In the dermatology field, this isn’t usually the case. Your practice will still receive record requests, billing from insurance companies and other forms of paperwork. The influx of paperwork can continue for months, if not longer. Some physicians continue to get requests and billing years after retirement.
You’ll also continue seeing bills accrue after you see your last patient, and you have to consider how you’ll manage your outstanding receivables. You’ll need to set up a way to issue and accept payments so you can keep receiving money for well over a year.
Your patients will also need to find a new physician once you exit the practice. You’ll need to notify them of your retirement and create a plan to store and easily access patient records.
Manage Your Finances
Create a fund that ensures you have enough money to last you through your retirement. You should have a clear idea of where your retirement income will come from, apart from social security. According to financial advisors, you’ll want to follow the five percent rule. This means that if you want to spend $100,000 a year during your retirement, you will need to have $2 million or more in assets.
Have a general idea of how much you want to spend during retirement so you know how much you’ll need to save. Start saving early on in your practice and remain consistent to have enough financial support to carry you through retirement.
Create a Multiyear Plan
Retirement is inevitable, and planning ahead can save you a lot of time and energy once the date finally rolls around. The sooner you create a retirement plan, the more seamless your retirement will be.
When you create a multiyear plan, you can create long-term goals for your practice. Set a timeline to complete these goals, and be sure to make necessary changes as your practice develops. A multiyear plan will also help you create goals that set up a successful retirement so your transition from an active physician to a former dermatologist goes as smoothly as possible. Planning ahead also ensures that you have enough funds to last you through retirement. Your practice, patients and finances will all be taken care of with proper planning.
DermCare Management can help you develop a multiyear plan that helps you maintain your legacy and brand long after you’ve retired. We’ll also help you create a budgeting plan so you know you’ll have enough money saved to sail through retirement in comfort.
Should I Sell My Dermatology Practice When I Retire?
More dermatologists are selling their practices than ever before for numerous reasons, such as age, the growth of the practice and increasing administrative tasks. There is understandably some concern when it comes to selling your dermatology practice. Many dermatologists have enjoyed full autonomy over their practice for years and are worried about what will happen once they sell. However, as retirement nears, the idea of selling becomes more appealing.
You can explore various avenues if you decide to sell your practice. Take the time to vet each buyer properly and fully understand your options before making a final decision.
Partner With a Dermatology Management Team
Many physicians worry about selling their practice once they retire. Once you establish your practice, it can be challenging not have full autonomy over your practice. A dermatology management team can take over your managerial tasks while you maintain control over your practice.
There are numerous benefits to working with a dermatology management group, such as:
- Improved time management: A dermatology management team will help you handle administrative tasks that cut into the time you could use to treat patients. With these managerial tasks taken care of, you can focus on patient care.
- Ability to create a dermatologist retirement plan: Once you’ve decided to start prepping for retirement, a dermatology management group can help you develop a retirement plan to help phase you out of the practice. They’ll make the transition as smooth as possible so you can focus on achieving your long-term goals for your practice and retirement.
- Retaining control over clinical decisions: A derm group will help you handle the management aspects of your practice while allowing you to have complete control over your practice and the treatment of your patients. As you prepare for retirement, you can rest assured that your team will handle the management aspects of your business properly.
Plan Your Retirement With DermCare Management
DermCare Management takes over the administrative tasks associated with your practice so you can focus on planning your retirement. We’ll also provide guidance and help you create a multiyear plan that outlines your transition into retirement. With DermCare, your retirement is simplified and done on your terms.
While you continue to practice, you maintain 100% clinical autonomy. You have complete control over patient treatment while we handle the paperwork and other management tasks. Once you retire, you can rest assured that your practice is in good hands.
Contact us today to learn more about how you can partner with us and help you retire seamlessly from the dermatology field.