Are You an R.I.P. Practitioner?

R.I.P. conjures images of zombies, ghosts, and dread. R.I.P. practitioners are not that far from these same images. But, in this case, R.I.P. means Retired In Place. Retired In Place (R.I.P.) practices are operations that lack vigor, imagination, growth, and life. They maintain the status quo, year after year, with little change. These practices become victims of the market - as technology changes the way services are performed, these practices stagnate. As clients demand more innovative services, these operations offer nothing new. As government tightens regulations, these practices fail to adapt. From my perspective, R.I.P. businesses have 3 strategic choices - 1. Do Nothing, 2. Adapt, or 3. Sell.

1. Doing Nothing can lead to obsolescence. The business becomes irrelevant in the eyes of the client. Clients gravitate to innovate practices that employ artificial intelligence to enhance the patient experience. Do Nothing leads to eventually closing operations in failure.

2. Adapt requires a change in thinking about what the practice is and making strategic investments in people, processes, and production. It is the long-term play.

3. Sell means cashing out now before more Enterprise Value is lost.

On review, Doing Nothing is not a good choice. Most practitioners have invested their life's savings in their practices. And it usually represents the nest egg for one's retirement. So, the realistic choices are Adapt (which requires investment) or Sell (which means cashing out and harvesting your past investments). What works best for you? Some have the financial resources and time to Adapt. Many do not. For those who do not, Sell may be the better option. If you think that the Sell option may work for you, learn more. Remember, few owners sell their practices too early, but many, unfortunately, sell their practices too late.

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